Payment for shelf space by manufacturers to supermarkets illustrates _____.
A)the role of manufacturers' representatives
B)channel power by a retailer
C)channel cooperation by retailers
D)competition in the marketplace

Question

Quizplus · Accepted Answer

Payment for shelf space by manufacturers to supermarkets illustrates channel power by a retailer. The supermarket has the power to demand payment from manufacturers for displaying their products on prominent shelves or in prominent locations, giving them an advantage over other manufacturers who cannot afford to pay for that space. This is an example of channel power, where one channel member exerts influence over another channel member.

Payment for Shelf Space by Manufacturers to Supermarkets Illustrates _____