Firms that price their products differently for online purchases face the risk of cannibalization.

Question

Quizplus · Accepted Answer

This is because customers can easily compare online and offline prices and may choose to purchase the cheaper option, leading to a loss of sales for the brick-and-mortar stores. Additionally, customers may become hesitant to purchase products from physical stores if they know the online prices are lower, which can also contribute to cannibalization.

Firms That Price Their Products Differently for Online Purchases Face