Scenario 15-2
The Sounds Good recording company is getting ready to release the first compact disc from its newest band, Planet Moon.Sounds Good's last three releases have been dismal failures, and the struggling company needs a quick influx of cash.The owners decide to use sales promotions to move the Planet Moon disc through record stores and into customers' hands.
-(Scenario 15-2) Sounds Good knows that the release cannot succeed without gaining distribution in large record store chains.However, many of these chains are refusing to carry the product, saying that shelf space is too precious to be used for an unknown band like Planet Moon.However, buyers for these chains say that they might be willing to carry the product if Sounds Good makes a direct cash payment to the chain.This is known in the trade channel as a:

Question

Quizplus · Accepted Answer

A slotting fee is a direct cash payment made by a producer to a retailer for the privilege of having its product placed on the retailer's shelves. Given that the large record store chains are refusing to carry the product, a slotting fee is the best option for Sounds Good to gain distribution in these stores. Cooperative advertising fees, merchandise allowances, and rebates are all different types of promotional allowances offered by producers to retailers, but they are not relevant to this scenario.

Scenario 15-2 The Sounds Good Recording Company Is Getting Ready to Release