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Stockout Problem Essay


This paper investigates such important market problems as stock out problem, rain checks and customer satisfaction. Besides, the second part of the paper investigates risks in high-tech stock.

“Stock out problem”

The store strategy comprises both logistical and marketing aspects that must be taken into consideration. Stores must be designed for effective restocking and must be planned to attract consumers in order to make their shopping time enjoyable.

Customer service is very important to retailers. So, stock-out is the problem number one that must be liquidated as it is the most frequently mentioned cause of frustration for dissatisfied customers.

Still, retail out-of-stocks are not moved out for the last several years, and this despite new technologies and industry growth.

Besides, another problem that is connected with the stock out problem – product availability – at the store level automatically is difficult too. Manual availability measurement takes much time and costs too much. That is why, despite the significance of product availability, only several retailers measure their out-of-stock levels.

Understanding the customer reaction is a major strategy in calculating the price of a stock-out. Measuring the price of a stock-out is difficult first of all because it depends on the consumer’s reaction to the stock-out.

When a store advertises an item at a certain price, than it is expected to have this very product in stock and available to consumers for all the advertisement time. If the product is not available, the hypermarket must put a notice that the products are not available and that a rain check may be got upon request.

Homework vital before taking risks in high-tech stock

With the great growth of high-tech companies and dot-com start-ups, employers are using different methods for retaining scarce high-tech talent. In many situations, new employers are turning to stock options. This way is not new, stock options – which are reserved for corporate executives – are now proposed.

At first sight, stock options can be answers to the problems emerging companies have recruiting employees. In fact, for many new economy employers, stock options are the ideal variant to lure employees from their current jobs.

One can fully agree with the article written by Edmonton Watt about high-tech stocks. The innovations and new technologies promote the industry and the technology sector in general. Though you are to be careful and this is right. Companies are different and the degree of a risk is different too. The author of the article proposes companies to add some high-tech stocks to their investment.

Watt points out that before implementing the high-tech stock into your company, first of all you are to decide what type of returns you are seeking for. Whether these are steady, long run or instant windfall returns.

The second step, after the author, is to consider the company’s size and the market strategy. The first and foremost advice: risks are not high when the company exists and has got the reputation. In other words, risks are lower with a larger company.


The given paper briefly analyzes stock out problem, rain checks and customer satisfaction.
Besides, it examines such important aspects of stores as risks in high-tech stock.

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