Solved

Which Statement About the Implications of Product Stock-Outs for Retailers

Question 12

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents