Which of the Following Is NOT True Regarding Slotting Fees

question 78

Multiple Choice

Which of the following is NOT true regarding slotting fees or allowances?

• A) Retailers can charge slotting fees because of their power and the limited availability of shelf space in many retail stores.
• B) Retailers argue they are justified because they are assuming some risks in taking on a new product, and so many new products fail.
• C) Retailers argue they are justified because there are costs associated with taking on a new product, such as entering the product into the computer and finding warehouse space.
• D) Even large manufacturers with popular brands and large promotional budgets always have to pay slotting fees.

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