Scenario 11-2
The White Noise recording company is getting ready to release the first compact disc from its newest band, Wet-Dog. Because White Noise's last three releases have been dismal failures, the company needs a quick influx of cash. The company has decided to use sales promotions to move the product through record stores and into customers' hands.
-(Scenario 11-2) White Noise 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 on an unknown brand like Wet-Dog. However, buyers for these chains say that they might be willing to carry the product if White Noise makes a substantial direct cash payment to the chain. This payment is known in the trade channel as

Question

Quizplus · Accepted Answer

The direct cash payment requested by the large record store chains is known as a slotting fee. This is a common practice in the trade channel where manufacturers pay retailers to stock their product, usually to gain access to limited or prime shelf space.

Scenario 11-2 The White Noise Recording Company Is Getting Ready to Release