Why is a slotting allowance required by retailers with limited shelf space?
A) to draw attention to a new product
B) to allow for a side-by-side comparison of products
C) to increase the capacity of the channel
D) to distance themselves from competitors
E) to offset the financial risk of new products
Answer: E
Explanation: Retailers are naturally reluctant to give up shelf space to unproven products, so slotting allowances help offset the financial risk of bringing in new products.
You might also like to view...
Conditions favoring the choice of using a sample over a census include all of the following EXCEPT:
A) small budget. B) time available is short. C) population size is large. D) variance in the characteristic of interest is low. E) cost of sampling error is high.
Using Table 12-6, what proportion of time are the servers busy?
A) 0 B) 0.333 C) 0.5 D) 0.6667 E) 1