Which of the following is true of slotting allowances?
A)They are discounts offered for purchasing a large number of units.
B)They are often in the form of price reductions for performing promotional activities.
C)They tend to add marketing cost to a manufacturer and affect profits.
D)They are payments made by retailers to manufacturers to allow them to stock the manufacturer's products.

Question

Quizplus · Accepted Answer

Slotting allowances are fees paid by manufacturers to retailers for shelf space, essentially paying for the product to be stocked, displayed, or promoted. This increases the marketing costs for the manufacturer, potentially affecting their profits.

Which of the Following Is True of Slotting Allowances