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| Author: | Rao, A. R. Mahi, H. |
| Title: | The Price of Launching a New Product: Empirical Evidence on Factors Affecting the Relative Magnitude of Slotting Allowances |
| Journal: | Marketing Science
2003 : SPRING, VOL. 22:2, p. 246-268 |
| Index terms: | FOOD INDUSTRY NEW PRODUCTS RETAIL INDUSTRY |
| Language: | eng |
| Abstract: | Slotting allowances are a relatively recent trend, particular to the retail food industry. These allowances are lump-sum, up-front transfer payments from manufacturer to retailer when the manufacturer launches a new product. The practice has attracted some scrutiny because of uncertainty about its purposes and consequences. The authors draw from the extant literature to identify factors that potentially influence the relative magnitude of slotting allowances. Based on analysis of primary survey data from retailers and manufacturers, the authors observe that charging and paying of slotting allowances are affected by the relative strength of the players. The authors discuss the theoretical, managerial, and public policy implications of the findings. |
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