Week 6 Topic questions

Question 1

a) What experiences have you had with shopping online?

I have had very limited experiences with online shopping, but the ones I do have are sometimes positive but cab be negative as well. Such as not receiving the package on the right date even though paid extra for faster delivery.

b) Describe a good experience.

A good experience is receiving the product you ordered on the right date or even earlier and the product was exactly hat it looked like in the picture and fit perfectly.

c) What did you like about the online store you used?

You could use PayPal to pay for the product you were buying which is a say site to transact money through.

d) Describe a bad experience.

When I bought a costume paid for express deliver and didn’t receive it on time then when I tried to contact them to return it they bluntly ignored me so I couldn’t return the item.

e) What problems did you have with the online store?

They basically wouldn’t let me return the item.

f) What features make an online store more appealing?

Paypal, good customer service, great reviews, pictures of all angle of the product.

g) What features make an online store less appealing?

Bad reviews, not having PayPal, no pictures

h) Should we expect to see the prices of goods and services rise or fall due to the migration of consumers online?

I think the prices of goods and services will rise due to the migration of consumers online.

Question 2

a) The dispersion of prices (that is, the spread between the lowest and highest price for a particular product) will narrow.

I agree.

b) The importance of brand names will decrease.

No I think the importance will increase due to more brands becoming popular.

c) Price competition will make all products cheaper.

Yes I agree, more competition means customers are going to look for the lowest prices and therefore products become cheaper.

d) Digital markets will become dominated by a handful of mega-sites, like Amazon.com.

Yes I think this is possible.

e) How do you think the balance of power between buyer’s and seller’s will change?

I think since there is more competition between businesses customers will have the upper hand since they are looking for the cheapest product.

f) Prices are clustered online.

True

g) Online prices are elastic. ( i.e. immune to change up and down with demand)

False

h) Online prices are generally transparent (the extent to which prices for a given product or service are known by buyers in the marketplace.).

True

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