Final answer:
The market leader for a low-involvement product must avoid stock-outs to prevent customers from choosing competing brands. Product differentiation and brand reputation strengthen the market position, making consistent availability key to maintaining customer loyalty in monopolistic competition.
Step-by-step explanation:
The market leader for a low-involvement product must make special efforts to avoid stock-out situations so that buyers don't substitute a competing brand. Low-involvement products are typically those that are relatively inexpensive and have little perceived risk associated with their purchase, leading consumers to make purchase decisions quickly without much deliberation. High stock availability is crucial for such items as consumers are more prone to switch brands if the product they seek is not immediately available.
Product differentiation and establishing a well-respected brand name can help create a competitive edge in a market where options abound. This is particularly important in cases of monopolistic competition, where many firms sell products that are differentiated by brand but relatively close substitutes for each other. Thus, maintaining constant product availability is integral to retaining market leadership and customer loyalty for low-involvement products.