Browse

Product Proliferation and the Determination of Slotting and Renewal Allowances

Cited 0 time in Web of Science Cited 0 time in Scopus
Authors
Messinger, Paul R.; Chu, Wujin
Issue Date
1995-09
Publisher
College of Business Administration (경영대학)
Citation
Seoul Journal of Business, Vol.1 No.1, pp. 93-116
Keywords
push approachpullallocational mechanisms
Abstract
We examine the roles of slotting and renewal allowances in the allocation

of scarce retail shelf space. Several contrasting features of the two shelf

allocational mechanisms are shown.

With slotting allowances, manufacturers can signal the profitability of new

products and retailers can screen out the least profitable products. With renewal

allowances in a full information context, manufacturers can induce

retailers to carry their less profitable products, illustrating a "push" approach

to attaining shelf placement: manufacturers of product that enjoy

strong consumer "pull* obtain shelf placement without paying renewal

allowances. In both cases, product proliferation results in higher slotting and

renewal allowances by raising the opportunity cost of shelf space. However,

as countervailing leverage against retailers, manufacturers of successful

product lines can use their successful products to help attain placement for

their relatively weak products.
ISSN
1226-9816
Language
English
URI
http://hdl.handle.net/10371/1760
Files in This Item:
Appears in Collections:
College of Business Administration/Business School (경영대학/대학원)Dept. of Business Administration (경영학과)Seoul Journal of BusinessSeoul Journal of Business Volume 01, Number 1 (1995)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse