The Practice of Charging a Slotting Allowance Is Controversial Because

question 8

Multiple Choice

The practice of charging a slotting allowance is controversial because:

• A) large-scale sellers complain that the allowances shut out all but the smallest suppliers.
• B) the allowance prevents new products from acquiring shelf space.
• C) it leads to retailers stocking up on a product when it is on discount.
• D) manufacturers are not entitled to charge retailers a fee to display new products.
• E) some manufacturers feel they're being forced to subsidize the retailer's cost of doing business.