A producer offers a retailer free merchandise to stock a new item. The retailer is receiving a(n)
A) spiff.
B) cash discount.
C) seasonal discount.
D) slotting allowance.
E) cumulative quantity discount.

Question

Quizplus · Accepted Answer

The retailer is receiving a slotting allowance, which is payment made by a manufacturer to a retailer to ensure that their product is placed in a favorable position in the retail store. The free merchandise is a form of payment to encourage the retailer to carry the new item.

A Producer Offers a Retailer Free Merchandise to Stock a New