The sales force for Ramon Tool Corp.has been instructed to offer a 10 percent discount to its retailers on all units ordered in excess of the previous month's order amount.The offer will be extended to Ramon's independent retailers,applicable to several small hardware lines.The objective of this type of sales promotion is to:
A) build up reseller inventories.
B) increase traffic in retail stores.
C) improve shelf space and displays.
D) reinforce advertising.
E) encourage trial purchases of a new product.

Question

Quizplus · Accepted Answer

The objective of offering a 10 percent discount to retailers on all units ordered in excess of the previous month's order amount is to build up reseller inventories. This incentive encourages retailers to purchase more from Ramon Tool Corp and maintain higher inventory levels, which can lead to increased sales for the company.

The Sales Force for Ramon Tool Corp