Which of the following discounts refer to a list price reduction given to channel members for the specific jobs they are doing for the manufacturer or producer?
A. Quantity discounts
B. Cash discounts
C. Trade discounts
D. Cumulative quantity discounts
E. Seasonal discounts
Answer: (C) Trade discounts, also known as functional discounts, are given for various activities performed by the channel member for the producer. Quantity discounts (A) are given to encourage volume purchases. Cash discounts (B) are given to encourage buyers to pay their bills early. Cumulative quantity discounts (D) are give to encourage volume purchases like quantity discounts, but allow the purchaser to buy products at different times until they have accumulated enough in purchases to qualify for a volume discount. Seasonal discounts (E) are given to encourage buyers to purchase products early, and out-of-season, to free up space for the manufacturer, among other reasons.