Which of the Following Is NOT TRUE in Describing Retailers

question 17

Multiple Choice

Which of the following is NOT TRUE in describing retailers who offer a deep,and broad assortment?

• A)It increases inventory holding costs
• B)It increases inventory investment because a retailer must have backup stock for each SKU
• C)Discounters and warehouse clubs offer a greater assortment
• D)Specialty retailers offer the depth of merchandise

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Definitions:

Availability Heuristic

A mental shortcut used when judging the frequency or probability of events based on how easily examples come to mind.

Cognitive Heuristic

A mental shortcut that allows people to solve problems and make judgments quickly and efficiently.

Simulation

A method for implementing a model over time to study the behavior of a system or to analyze the implications of a complex process or strategy.

System-1 Thinking

Reactive thinking that relies heavily on situational cues, salient memories, and heuristic thinking to arrive quickly and confidently at judgments.