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| Slotting Allowance of Supermarkets: Reality and Logic |
| LIU Xiangdong1,LI Ziwen2,WANG Geng1 |
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2. Renmin University of China
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Abstract The retailing industry and academics have been arguing about the rationality and regulation of supermarkets charging slotting allowance. Through the field research on several supermarkets, this article summarizes the mode of slotting allowance in reality and finds that the mode in reality is essentially different from the results of other existing research. On this basis, the researchers proceed to analyze the economics logic of slotting allowance mode in reality and finally comes to the conclusion that the uncertainty of the sales directly leads to the charging of slotting allowance and that supermarkets with strong market power, weak operation capabilities and risk aversion inclination tend to adopt the mode of slotting allowance. In the end, this article points out that slotting allowance mode, as a normal mode of retail operation, should not fall under the category of direct government regulation agencies.
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Received: 05 December 2014
Published: 15 February 2015
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Corresponding Authors:
LI Ziwen
E-mail: lizord@ruc.edu.cn
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