A confectionery company pays a fee to a retailer to place its products near the checkout counter.By doing so, the confectionery company hopes to tempt customers to make impulse purchases.In this example, the fee paid to the retailer is a(n):
A)markdown.
B)advertising allowance.
C)odd price.
D)listing allowance.
E)rebate.

Question

Quizplus · Accepted Answer

A listing allowance is a payment made by a supplier to a retailer for listing its products in the retailer's inventory. In this case, the confectionery company is paying the retailer to have its products listed near the checkout counter, which increases the chance of customers buying them on impulse.

A Confectionery Company Pays a Fee to a Retailer to Place