Question

5.1 Given the following data from a recent Comparative Competitive Efforts page in the CIR: Your Industry Your Company AC CAMERA SEGMENT Company Average vs. Ind. Avg. Price (Average Wholesale Price $ per unit) $265 $250 +6.0% P/Q Rating (1 to 10 stars) 4.7 -7.8$ Brand Reputation 79 75 +5.3% Number of Models 3.1 +29.0% Retail Outlets — Multi-Store Chains 54 35 +54.3% Online Retailers 107 +57.4% Local Retailers 4,669 2,897 +61.2% Retailer Support($ per unit) 8.12 6.92 +17.3% Advertising Budget ($000s) 5,000 1,929 +159.2% Website Displays ($000s) 5,000 1,764 183.4% Sales Promotions - Weeks 6 +27.7% Discount 10.0% 15.9% -37.1% Warranty Period (days) 6069 -13.0% Demand for ACC Units (000s) 307. 9 2 79.0 +10.4% Gained /Lost (due to stockouts) -8.8 -0.1 AC Camera Units Sold (000s) 299.1 278.9 -7.2% Market Share 15.3% 14.3% +1.0 pts Special AC Camera Contracts Discount Offer Avg. Discount = 12.4% Value Index Avg. Value Index = 71 Special Contract Units Sold (000s) Total Units = 58.5k 4.7 Based on the above data for your company, which of the following statements is false?

Answer 1

Answer : OPTION E

It is false because the company's sales volume and market share in the AC camera was impacted by the inability to fill orders from retailers and not due to the bad P/Q ratings and discounts. If it is negatively impacted then there is no space for stockouts.

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