The sales forecasts for the summer season for LocoPoco,a beverage company,indicated increased demand for its colas.However,the actual sales were 30 percent lower than expected.Which of the following could explain the apparent discrepancy above?
A) Research reports revealed that there are harmful additives in colas.
B) Competitors launched a new brand of bottled water in the market.
C) Forecasts were based on information derived from external sources.
D) The firm's advertising budget was slashed by 2 percent.

Question

Quizplus · Accepted Answer

B  D  A) If research reports revealed harmful additives in colas, consumers might avoid purchasing them, leading to lower sales.  B) The launch of a new brand of bottled water by competitors could have shifted consumer preference away from colas.  D) A reduction in the advertising budget could lead to less consumer awareness and interest, resulting in lower sales.

The Sales Forecasts for the Summer Season for LocoPoco,a Beverage