Which statement about the implications of product stock-outs for retailers and manufacturers is FALSE?
A) For retailers generally, brand switching in the short term will likely not adversely impact revenues significantly if the product stock-out is not repeated.
B) If an item that is out-of-stock is not needed immediately by the shopper, many will delay the purchase until a later trip to the same store.
C) Brand switching does not result in direct loss of revenues and profits to manufacturers.
D) Overall, the cost of a stock-out is higher for manufacturers than retailers because most shoppers will engage in substitution behavior, often selecting another brand.
E) Brand loyal shoppers will wait to buy the product, but a different size of the same product, or travel elsewhere to buy the product, thus, out-of-stock costs to manufacturers will be low in the short term.
Correct Answer:
Verified
Q7: Lean manufacturing consists of a set of
Q8: Success in agile manufacturing requires firms to
Q9: For supply chains to be successful, any
Q10: Which of the following statements about omnichannel
Q11: All of the following could be common
Q13: For manufacturers, strategies to eliminate product stock-outs
Q14: Which of the following statements about product
Q15: Which of the following reasons for product
Q16: Which of the following reasons for product
Q17: Many disposition options exist for products returned
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents