A Company Resorts to Discount Blowouts to Get Rid of Excess

question 26

Multiple Choice

A company resorts to discount blowouts to get rid of excess merchandise. Which of the following scenarios is most likely to have triggered this action?

• A)increase in inventory costs
• B)ineffective tracking of the inventory
• C)overestimation of demand
• D)increase in the price of raw materials

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Definitions:

Stagnation

A period of slow or no growth in an economy, market, or industry, often marked by a decline in productivity and innovation.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market until its decline and eventual withdrawal.

Maturity

The state of being fully grown or developed, often referring to the final stage in the life cycle of a product or market.

Test Marketing

The process of launching a product in a limited geographical area or demographic to evaluate its performance before a full-scale launch.