Which of the following statements about cost and its impact on online shopping is most accurate?
A)Fixed pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions.
B)The margins for online offerings are usually higher than those purchased in traditional marketplaces.
C)Any price advantage for online purchases is lost in shipping and handling fees.
D)The majority of the most popular items bought online can be purchased at the same price or cheaper than in retail stores.
E)Dynamic pricing is the most commonly used pricing strategy for Internet purchases.

Question

Quizplus · Accepted Answer

Studies have shown that the majority of popular items bought online, including electronics, clothing, and household items, can be purchased at the same price or cheaper than in retail stores. This is due to the fact that online retailers may have lower overhead costs and can pass those savings on to consumers. However, shipping and handling fees may negate any price advantage for smaller purchases. Fixed pricing is commonly used online, but dynamic pricing is also used in some cases, especially for airline tickets and hotel reservations. The margins for online offerings can vary, but are not necessarily higher than those purchased in traditional marketplaces.

Which of the Following Statements About Cost and Its Impact