Question

Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion?

Answer 1

The sales promotion referred to in the question is called a "quantity discount." It offers temporary price reductions to retailers for purchasing a specified quantity of a product.

Step-by-step explanation:

The sales promotion referred to in the question is called a "quantity discount." This promotion involves offering retailers temporary price reductions for purchasing a specified quantity of a product. The purpose of this promotion is to provide an incentive for retailers to handle a new product, achieve a temporary price reduction, or stimulate the purchase of a product in large quantities.

For example, a supplier may offer a retailer a lower price per unit of a product if they purchase a larger quantity. This encourages the retailer to buy more of the product, helping the supplier move inventory and increase sales.Quantity discounts are commonly used in the business world to incentivize retailers and increase product sales.