DQ3 – Supply and Demand

Consumers have 5 key reactions to stockouts:

• Buy the item at another store
• Substitute a different brand
• Substitute the same brand
• Delay the purchase
• Do not purchase the item at all

Thinking about that, please answer the following:

1. What is a stockout?  Please define this in your own terms
2. Of the five reactions listed above… how do YOU find yourself reacting as a customer in a stockout situation?  Why do you think that is?
3. Of the five reactions listed above… which is the most harmful to a retailer?  Why?
4. How would you suggest a retailer handle a stockout situation… in other words, what should retail employees say to, or do for, customers in this stockout situation?
5. If you were starting a new retail store today, what specific technology or concept mentioned in Chapter 9 would you feel is most important one to implement in order to have an efficient and effective supply chain?  Why?