Ace the Future: FBLA Advertising Practice Test 2025 – Lead, Innovate, Dominate!

Question: 1 / 400

What is the term for a premium given by a manufacturer to a retailer for ordering a specific quantity of a product?

Push money.

Trade allowance.

POP opportunity.

Deal loader.

The correct term for a premium given by a manufacturer to a retailer for ordering a specific quantity of a product is "trade allowance." This concept typically involves providing a financial incentive or discount to retailers as a way to encourage them to stock a larger quantity of a product or to promote certain items in their stores.

Trade allowances can take different forms, such as volume discounts, promotional allowances, or even seasonal discounts, and they serve to motivate retailers to support the manufacturer’s products more actively. This strategy benefits manufacturers by increasing product visibility and sales while also helping retailers improve their inventory turnover and profit margins.

The other terms listed relate to different promotional strategies. For instance, push money is targeted towards salespeople to encourage them to sell certain products, and POP (point-of-purchase) opportunities focus on in-store advertising that points customers to products. Deal loader refers to a situation where bonuses or benefits are provided to retailers, but the term trade allowance is more specifically aligned with volume incentives for ordering.

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