Which of the following statements about cost and its impact on online shopping is most accurate?
A)Dynamic pricing is commonly used online because there is no need to respond quickly to changes in supply and demand conditions.
B)The margin for online offerings is usually higher than those purchased in traditional marketplaces.
C)Dynamic pricing is the most commonly used pricing strategy for Internet purchases.
D)Any price advantage for online purchases is lost in shipping and handling fees.
E)Lower external information search costs is one of the major reasons for the popularity of online shopping.

Question

Quizplus · Accepted Answer

Lower external information search costs is one of the major reasons for the popularity of online shopping. While dynamic pricing can be used online, it is not the most commonly used pricing strategy, and the margin for online offerings is not necessarily higher than those purchased in traditional marketplaces. Shipping and handling fees may add to the cost of online purchases, but this is not always the case, and the statement that any price advantage for online purchases is lost in shipping and handling fees is too absolute.

Which of the Following Statements About Cost and Its Impact