Question

Jiffy Cake Mix Company developed a new brownie mix that is much improved over its current brownie mix. When a sales representative for Jiffy contacted a buyer for a major supermarket chain, the buyer demanded that Jiffy give the supermarket chain a combination of cash and free cases of goods whose total value exceeded the entire marketing budget Jiffy planned to spend on the new brownie mix during its first year on the market. When the sales representative from Jiffy protested, the buyer said, "It is company policy to get ______________ in order to secure shelf space for new brands."

Answer 1

Answer: Slotting allowance

Explanation: Manufacturers or producers may often have to contact retail stores, supermarkets and other retail channels when marketing their product, this often comes at a cost, the amount manufacturers are being charged by this retail stores in other to keep or stock the company's product in its store, inventory or warehiuse is called the sticking or Slotting allowance. In the context above, the fee demanded by the supermarket which sparked protest from jiffy's representative is called the stocking or Slotting allowance.