The Internet has reduced all of the following types of costs for consumers except for:
A)information search costs
B)transaction costs
C)experience goods costs
D)product information costs
E)All of the above costs are reduced by the Internet.

Question

Quizplus · Accepted Answer

The internet has reduced information search costs, transaction costs, and product information costs for consumers. However, experience goods costs, which are the costs associated with the uncertainty and risk involved in purchasing a product or service that cannot be fully evaluated until after it has been consumed, are not necessarily reduced by the internet. Consumers may still need to try a product or service in order to fully evaluate it and may incur costs associated with returning or replacing it if it does not meet their expectations.

The Internet Has Reduced All of the Following Types of Costs