Which of the following factors does not favour promotion during peak-demand periods? Group of answer choicesHigh forward buying.High ability to steal market share.High ability to grow market.High profit margin.
Question
Which of the following factors does not favour promotion during peak-demand periods? Group of answer choicesHigh forward buying.High ability to steal market share.High ability to grow market.High profit margin.
Solution
High forward buying does not favour promotion during peak-demand periods.
Here's why:
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Forward buying is when retailers buy and store products in anticipation of future price increases or promotional periods.
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During peak-demand periods, the demand for a product is already high. Therefore, promoting a product during this time might not significantly increase its demand.
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Furthermore, if retailers have already stocked up on a product due to forward buying, they might not have the storage capacity to accommodate additional products that might be sold as a result of the promotion.
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This could lead to overstocking, which could increase storage costs and the risk of products becoming obsolete or spoiling.
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Therefore, high forward buying does not favour promotion during peak-demand periods.
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