The Role of Slotting Fees and Introductory Allowances in Retail Buyers' New-Product Acceptance Decisions

White, J. Chris; Troy, Lisa C.; Gerlich, R. Nicholas

doi:10.1177/0092070300282009

Cited by 37 publications

(43 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This is not completely surprising as the previous research has largely included empirical data from urban and organized retailers, whereas the dynamics of the BoP markets is expected to be different. At the same time the findings related to the effect of brand promotions, especially in the form of channel level promotions, offers and discount schemes, is largely synchronous with previous research done by Aliwadai (2001) andWhite et. al., (2000).…”

Section: Discussionsupporting

confidence: 88%

Brand adoption by BoP retailers

Sinha

Gupta

Rawal

2017

QMR

View full text Add to dashboard Cite

Previous studies with regard to brand adoption by retailers have focussed on large retailers who are approached directly by the brands. There is a lack of studies on how BoP retailers adopt brands who sell to a very different set of customers and are served indirectly through long indirect channels. Most studies have approached the subject from a distribution perspective of reaching to these markets. Sixty retailers belonging to different villages of Central and North Gujarat, were interviewed to understand their brand adoption process.The interviews were audio recorded, transcribed and analysed. A grounded theory based analysis was carried out. The analysis brought out six criteria used by the retailers in selecting brands with demand for the brand as the most dominant factor. Other criteria included brand adoption by other retailers, profitability, influence of wholesaler/distributor, and packaging.

show abstract

Section: Discussionsupporting

confidence: 88%

Brand adoption by BoP retailers

Sinha

Gupta

Rawal

2017

QMR

View full text Add to dashboard Cite

show abstract

“…Recently, empirical investigations of secondary data (Sullivan 1997), the opinions of practitioners (Bloom et al 2000), as well as the practices of a single grocery chain (White et al 2000), have begun to shed some light on the payment of slotting allowances. However, the conclusions from these papers are somewhat conflicting.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…However, the conclusions from these papers are somewhat conflicting. Although Sullivan's broad-brush macroeconomic analysis of secondary data is supportive of a "procompetitive" conclusion for the emergence of slotting fees, White et al (2000) offer some speculation that manufacturer size might attenuate slotting allowances (an "anticompetitive" story), and Bloom et al (2000) provide data from manufacturers and retailers that yield conflicting evidence on why the practice exists. Bloom et al (2000) offer an excellent summary review of the extant perspectives and literature on the topic of slotting allowances.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…Bloom et al (2000) report the opinions of manufacturers and retailers, and find that the opinions of these players are often at odds with some existing theoretical perspectives and with each other. White et al (2000) examine the new product adoption decisions in a single chain and, among other things, find some preliminary evidence that is consistent with an anticompetitive story.…”

Section: Introductionmentioning

confidence: 95%

See 1 more Smart Citation

The Price of Launching a New Product: Empirical Evidence on Factors Affecting the Relative Magnitude of Slotting Allowances

Rao

Mahi

2003

Marketing Science

View full text Add to dashboard Cite

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. We 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, we observe that charging and paying of slotting allowances are affected by the relative strength of the players. Among retailers, the relative magnitude of slotting fees increases with retailers' informational advantage over the manufacturer about the likely success of the new product, even when retailers recognize that the product is likely to be successful. Additionally, and consistent with the first finding, retailers with lower costs (i.e., potentially more efficient and powerful retailers) received higher slotting allowances. Furthermore, retailers charge higher slotting fees, even when concerns about manufacturers' fulfilling postlaunch advertising commitments are minimal, implying that relatively powerless manufacturers are asked to provide credible commitments regarding postlaunch activities and are asked to pay relatively high slotting fees. Among manufacturers, the relative magnitude of slotting fees paid is lower for those who have a strong market share position. We discuss the theoretical, managerial, and public policy implications of our findings.

show abstract

“…For example, CompUSA was charging .software publisher's slotting fees and instituting branded shelves in 1998 (Warren Publishing 1998;White, Troy, and Gerlich 2000).…”

Section: Retailers Charge Foot Locker and Champs Sports Pointed Tmentioning

confidence: 99%

Marketing Research and Public Policy: The Case of Slotting Fees

Wilkie

Desrochers

Gundlach

2002

Journal of Public Policy & Marketing

View full text Add to dashboard Cite

The authors extend their appreciation to Paul Bloom and Joseph Cannon, who provided valuable feedback and insights regarding this article and permitted the use of the survey data that made this article possible. 1 Although frequently used interchangeably, slotting fees typically refer to up-front cash payments, whereas allowances reflect free or discounted orders for products (Cannon and Bloom 1991).

show abstract

The Role of Slotting Fees and Introductory Allowances in Retail Buyers' New-Product Acceptance Decisions

Cited by 37 publications

References 17 publications

Brand adoption by BoP retailers

Brand adoption by BoP retailers

The Price of Launching a New Product: Empirical Evidence on Factors Affecting the Relative Magnitude of Slotting Allowances

Marketing Research and Public Policy: The Case of Slotting Fees

Contact Info

Product

Resources

About