Some suppliers use generous terms on trade credit as a form of sales promotion. This is always less effective than an intensive advertising campaign or a high-pressure sales team.

Question

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The effectiveness of using generous terms on trade credit as a sales promotion strategy compared to intensive advertising or a high-pressure sales team varies depending on the business context, industry, target market, and specific customer needs. For some businesses, especially in B2B markets, offering favorable trade credit terms can significantly influence purchasing decisions and build long-term customer relationships, potentially being more effective than traditional advertising or sales tactics.

Some Suppliers Use Generous Terms on Trade Credit as a Form