Playing with slots

September 2006
Marketing Management;Sep/Oct2006, Vol. 15 Issue 5, p5
The article reports that slotting allowances, which are payments from manufacturers to retailers for stocking new products, are more efficient than anticompetitive, despite the popular belief that they are unfair and discourage competition. An analysis of data on all new products that were offered to one retailer over a period of six months found that slotting allowances efficiently allocate scarce retail shelf space, help balance risk related to new products, help manufacturers determine the success of new products, and widen retail distribution for manufacturers.


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