Research On Slotting Allowance And The Influence Of Slotting Allowance On Marketing Channel

With the development of China's retail business, slotting allowance become a potential internal rules gradually. Slotting allowance results the fierce debates between the manufactures and retailers. Thereby, researches on this phenomenon may conduct some important meanings. This paper made massive fundamental researches to prove the rationality of its existence, discussed changes of price and product variety in channel which under the influence of slotting allowance. Based our research, we also discussed the optimal strategy of manufacture and retailer, develops some governmental regulation.This paper contains following studies and results:①Analyzed transaction cost of the participant in the channel when they made the deal, found that the slotting allowance will reduce their transaction cost and benefit the participants. Meanwhile, a research based on the principal-agent theory model proved the rationality of slotting fees.②Build an economic model with competitive environment in the marketing channel, analyzed the profits of manufacturers and retailers, and discussed the relationship between the amount of slotting allowance and the product variety in equilibrium. Some conclusions are drawn by the results; we also explained some phenomenon in real by our conclusions. We found the slotting allowance influence the product variety in retail channel directly and summarized the relativity between them.③Regarding the competition between manufactures, analyzed the strategy of leader-manufacture to avoid the follower-manufacture deceiving retailer in order to signaling its real information. We also found the optimal strategy for the leader-manufacture and the relationship between retail's opportunity cost and the equilibrium sales contract.④Combined the results concluded by our research, analyzed two cases about slotting fee, sum up that the government should take some regulations to make the slotting allowance legal and clear.