While the size of the tail in the long tail phenomenon is disputable, one fact that is critical to remain above this debate is that:
A) traditional brick and mortar retailers offer selections that cannot be rivaled by Internet pure-plays.
B) energy costs and worker wages drive up the costs of running stores like Netflix.
C) selection attracts customers, and the Internet allows large-selection inventory efficiencies that offline firms can't match.
D) the turnover rate of obscure titles in traditional video rental stores is only slightly higher than those for Internet pure-plays.
E) the cost of store maintenance and real estate makes stores such as Netflix unattractive.

Question

Quizplus · Accepted Answer

The long tail phenomenon is based on the idea that businesses can make significant profits by selling a large number of unique items in relatively small quantities, facilitated by the Internet. This is because the Internet allows for large-selection inventory efficiencies that offline firms can't match, due to lower costs associated with digital storage and distribution compared to physical inventory and shelf space.

While the Size of the Tail in the Long Tail