The Costs of Product Placement, Maserati Edition
In my academic research, I’ve studied contractual arrangements between manufacturers and retailers for premium shelf space, including slotting arrangements and category management contracts. Typically, a shelf space arrangement in the retail sector will involve the supplier compensating the retailer for some specified promotional shelving arrangement, e.g. end-caps or eye level space, or a share of the total shelf space dedicated to a particular product category. These arrangements have much in common with what is commonly referred to as product placement (see also the economics of celebrity endorsements).