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I finally decided to buy a pair of Uggs, but when I got around to shopping for my Uggs, the style that I wanted was
I finally decided to buy a pair of Uggs, but when I got around to shopping for my Uggs, the style that I wanted was sold out. The scarcity factor is a strategy by Ugg's parent Deckers Outdoor that is one of the big reasons behind the brand's success. Deckers tightly controls distribution to ensure that supply does not outstrip demand. If Deckers ever opened up the supply of Uggs to meet demand, sales would shoot up like a rocket, but they'd come back down just as fast.
Source: Fortune June
Explain why Deckers intentionally restricts the quantity of Uggs that the firm sells.Deckers intentionally restricts the quantity of Uggs that it sells to
A
eliminate markup
B
encourage competition
C
differentiate its product
D
lower fixed costs
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