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Which of the Following Is NOT True Regarding Slotting Fees

Question 110

Multiple Choice

Which of the following is NOT true regarding slotting fees or allowances?


A) Retailers can charge slotting fees because of their power and the limited availability of shelf space in many retail stores.
B) Retailers argue they are justified because they are assuming some risks in taking on a new product, and so many new products fail.
C) Retailers argue they are justified because there are costs associated with taking on a new product, such as entering the product into the computer and finding warehouse space.
D) Even large manufacturers with popular brands and large promotional budgets always have to pay slotting fees.

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