Which type of allowance involves reductions in price for advertising commitments?

The correct choice is related to advertising allowance, which specifically pertains to price reductions extended to retailers or wholesalers in exchange for their commitment to advertise the manufacturer's products. This type of allowance incentivizes those intermediaries to promote the product more actively, thereby increasing its visibility to consumers.

Advertising allowances can take various forms, such as direct discounts on products purchased for the purpose of being promoted or funding allocated for advertising campaigns that feature the brand or product. This practice is beneficial as it not only supports the selling efforts of retailers but also enhances brand awareness and strengthens the relationship between manufacturers and their distribution channels.

On the other hand, while trade allowances also involve discounts, they are usually broader and may encompass various incentives for purchasing or promoting products rather than solely focusing on advertising efforts. Slotting allowances are fees paid to retailers to place products on store shelves, and consumer allowances typically refer to discounts offered directly to consumers rather than to businesses. Thus, the specificity of advertising allowance as it pertains directly to advertising commitments makes it the correct answer in this context.