Cooperative merchandising agreements are popular with manufacturers because the retailer performs a marketing function in order to receive an allowance or incentive.

Question

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Cooperative merchandising agreements involve manufacturers providing allowances or incentives to retailers who perform certain marketing functions such as displaying their products prominently or running promotions. This is beneficial for manufacturers as it helps increase the visibility and sales of their products.

Cooperative Merchandising Agreements Are Popular with Manufacturers Because the Retailer