If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate the retailer for sales its valuable shelf space never made. What is this type of payment called?

If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate the retailer for sales its valuable shelf space never made. What is this type of payment called?



A.

a dropout charge


B.

a loser fee


C.

a failure fee


D.

a retailer spiff



Answer: C


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