Which statement best explains the increasing power of major retailers over manufacturers?
A) Grocery stores are growing faster than warehouse clubs due to the push to eat locally.
B) Today's retail buyers rely on CRP systems to purchase and maintain balanced inventories.
C) Manufacturers have the ability to threaten retailers with insufficient quantities of name brand products.
D) Suppliers introduce numerous products each year and have to offer promotional allowances to gain shelf space.
E) Online retailers are commonly involved in the illegal act of diverting products to out-of-channel distributors.

Question

Quizplus · Accepted Answer

Suppliers are constantly introducing new products each year and in order to gain shelf space in major retailers, they often have to offer promotional allowances, giving the retailers increasing power over the manufacturers. This has led to a concentration of power in the hands of a few major retailers, who are dominating the market and exercising greater control over suppliers.

Which Statement Best Explains the Increasing Power of Major Retailers