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Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.Question 27Answera.FALSEb.TRUE

Question

Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.

Question 27
Answer

  • a. FALSE
  • b. TRUE
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Solution

Analyzing the Statement

  1. Understanding Backward Buying: Backward buying refers to the behavior of retailers purchasing large quantities of a product in anticipation of price increases or to take advantage of temporary price reductions during promotions.

  2. Context of Promotion Periods: During promotion periods, prices of goods are reduced, which typically encourages retailers to stock up on those goods to maximize profit margins when they resell at regular prices.

Conclusion

Considering the definition of backward buying and its relation to retailer behavior in promotional contexts, the statement "Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying" is indeed accurate. Therefore:

Final Answer

b. TRUE

This problem has been solved

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