Scrambled merchandising can create ripple effects because the firm which loses sales due to scrambled merchandising by a competitor often has to then scramble its own product lines.

Question

Quizplus · Accepted Answer

Scrambled merchandising, where a retailer adds goods and services that may not be related to each other or to the store's original business, can indeed create ripple effects in the market. When a firm loses sales because a competitor has diversified its product range (scrambled its merchandise), it may feel compelled to also diversify its own product offerings to compete effectively, leading to a cycle of scrambling among competitors.

Scrambled Merchandising Can Create Ripple Effects Because the Firm Which