When the manufacturer reduces prices to channel members to compensate them for the services they perform, it is known as a:

A) cash discount.
B) noncumulative quantity discount.
C) cumulative quantity discount.
D) consumer discount.
E) trade discount.

Trade Discount

A reduction in the listed price of goods or services offered by a vendor to buyers in the same trade.

Channel Members

Channel members refer to the set of intermediaries that a product passes through from production to final sale, including wholesalers, distributors, and retailers.

Services Perform

The process of executing or delivering a service to fulfill a need or requirement of a customer.