Which of the following statements about cost and its impact on online shopping is most accurate?
A) Fixed 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 goods is usually higher than those purchased in a traditional marketplace.
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 search costs is one of the major reasons for the popularity of online shopping.

Question

Quizplus · Accepted Answer

Lower external search costs is one of the major reasons for the popularity of online shopping. This refers to the fact that consumers can easily compare prices and products across multiple websites without incurring additional costs such as transportation or time. This convenience is a significant factor in attracting consumers to online shopping. The other statements are not accurate; fixed pricing is not commonly used online, margins may vary depending on the product and market, dynamic pricing is not the most commonly used pricing strategy, and shipping fees may or may not negate any price advantage.

Which of the Following Statements About Cost and Its Impact