Justin is a sales representative for Hormel Foods and is meeting with the buyer for a regional grocery store chain.Hormel has recently introduced a new snack product that will be merchandised in the deli or meat section of the grocery store.Justin has a marketing allowance that can be utilized to promote the new product and gain acceptance or space in the store.A term for this type of fee is:
A)slotting allowance
B)marketing expense
C)retailer fee
D)new product fee

Question

Justin is a sales representative for Hormel Foods and is meeting with the buyer for a regional grocery store chain.Hormel has recently introduced a new snack product that ​will be merchandised in the deli or meat section of the grocery store.Justin has a marketing allowance that can be utilized to promote the new product and gain acceptance or space in the store.A term for this type of fee is:
A)​slotting allowance
B)​marketing expense
C)​retailer fee
D)​new product fee

Quizplus · Accepted Answer

A slotting allowance is a fee paid by manufacturers to retailers in exchange for space on their shelves. It is a common practice in the grocery industry for introducing new products or gaining better visibility for existing products. It helps the manufacturer to ensure that their product is prominently displayed in the store and has a better chance of being noticed by customers. Therefore, in the given scenario, Justin can utilize his marketing allowance as a slotting allowance to promote Hormel's new snack product and secure its display space in the deli or meat section of the grocery store.

Justin Is a Sales Representative for Hormel Foods and Is