A producer offers a retailer free merchandise to stock a new item. The retailer is receiving a
A) spiff.
B) cash discount.
C) seasonal discount.
D) slotting allowance.
E) cumulative quantity discount.

Question

Quizplus · Accepted Answer

The retailer is receiving a slotting allowance, which is a fee paid by the producer to the retailer to secure shelf space for a new product. This is different from a spiff, which is a bonus or incentive paid to salespeople to promote a specific product, and cash discounts, seasonal discounts, and cumulative quantity discounts, which all involve discounts on the price of goods.

A Producer Offers a Retailer Free Merchandise to Stock a New