Tire Rack.com is an online seller of tires that currently has a 14 percent share of the replacement passenger and light truck tire market in the United States and has a 25 percent share in Canada. Tire Rack not only sells tires but also sells wheels and offers mounting and balancing services. It does not offer installation services, but it partners with 8,100 installation providers in the United States, all of whom agree to charge standard installation fees based on tire size. The online presence of Tire Rack.com ________.
A) lowers search costs for the best tire deal and makes local tire markets more competitive regardless of the number of brick-and-mortar tire dealers
B) lowers search costs for the best tire deal but has no impact on local tire markets, because it does not provide tire installation services
C) lowers search costs for the best tire deal but actually makes local tire markets less competitive, because it has partnerships with tire installers
D) does none of the above
Correct Answer:
Verified
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