Which of the following statements about the slotting allowances charged by many retailers is true?

Question

Quizplus · Accepted Answer

Retailers justify slotting allowances as a way to cover the costs associated with taking on a new product, such as setting up new displays, training staff, and conducting promotional activities. Therefore, this statement is true. The statement in option B is not entirely accurate as not all new products are successful, and the retailers face risks associated with stocking new products. Option C is not necessarily true, as small companies with niche products may also have to pay slotting allowances. Option D is false, as slotting allowances are legal but subject to regulation. Option E is also false, as slotting allowances can add significant costs to new product introductions.

Which of the Following Statements About the Slotting Allowances Charged