Artificial Product Shortage

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Angela Kryhul’s article “Supply and Wii-mand” was published in the February 27, 2007 issue of Marketing Magazine. In this article, Angela discusses the concept of intentionally short-stocking anticipated high demand items at peak periods to generate excitement about the product. This strategy creates a “buzz” and a “must have” demand for the product, especially at critical times like Christmas gift giving season. The example used is the Nintendo Wii product, which was in great demand during the 2006 holiday season. Customers who wish to purchase the Wii but could not find it react poorly and create a negative image for the product. The central questions are whether the shortages are good marketing strategy and if so, are they intentional or an inadvertent result of misinterpreting the supply and demand balance for a product? The author feels that short stocking does not create the cachet around a product to make this a sound marketing strategy. Effective marketing strategies are critical to a successful business or product. As Mednick (2006) stated, “If you don’t know where you’re going, you won’t get there”. New marketing strategies are regularly conceived as companies attempt to gain that competitive advantage over others. A competitive advantage is “a unique strength relative to competitors that is often based on quality, time, cost, innovation, customer intimacy, or customer experience management”. (Crane, Kerin, Hartley, & Rudelius, 2008, p. 33) Kryhul argues an intriguing new strategy is deliberate short stocking, which can create a sense of shortage of a product. This occurrence leads consumers to believe that the product must be desirable because supply cannot keep up with overwhelming demand. This “buzz” can also result in some consumers who become envious of the few people who have the product and subsequently, take extraordinary Artificial

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