Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country.This payment is an example of a
A)product placement fee.
B)bribe.
C)product support fee.
D)slotting fee.
E)shelf space allowance.

Question

Quizplus · Accepted Answer

This payment is an example of a slotting fee, which is a fee charged by retailers to suppliers in exchange for stocking their products. The fee serves as a way for retailers to offset the costs associated with introducing new products while giving suppliers access to valuable shelf space.

Kroger Required That Birds Eye Pay $15,000 Per Month to Get