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Essay, 2 pages (400 words)

Chapter 10

Broadly speaking the definition of price includes all of the following accept: physical cost

This refers to the idea that both buyers and sellers can view all competitive prices for items sold online. Price transparency

All of the following are cost savings enjoyed by shoppers online exceptshipping costs are reduced

the phenomenon that some people may actually pay a higher price for auctioned products than they would pay an online retailorThe winners curse

This power is based largely on the huge quantity of information and product availability on the WebBuyer Power

This is the most common profit-oriented objective for pricingCurrent profit maximization

Which of the following attributes puts upward pressure on pricingall the above
-online customer service
-affiliate programs
-customer acquisition cost (CAC)

Which of the following internet attributes puts downward pressure on pricingSelf-service order processing

All of the following are types of markets recognized by economists exceptoligopolistic monopoly

A market is truly efficient when customers have equal access to information aboutall the above
-products
-prices
-distribution

This refers to the variability of purchase behavior with changes in pricePrice elasticity

Which of the following are possible explanations of online price dispersionAll the above
-delivery options
-time-sensitive habits
-switching costs

Which of the following is true in regard to electronic moneyBoth b and c
-it has been widely adopted in other countries(not U. S)
-also called e-money or digital cash

In general marketers can employ which of the following types of pricing strategies both online and offlineall the above
-fixed pricing
-auction pricing
-dynamic pricing

2 types of fixed pricing strategiesPrice leadership and promotional pricing

This pricing uses the internet properties for mass customization, automatically devising pricing based on the size and timing, demand and supply levels, and other preset decision factorsSegmented

In order to avoid upsetting customers who learn they are getting different prices than neighbors, e-marketers should use customer accepted reasons. These reasons may includeall the above
-giving discounts to new customers
-giving discount to loyal customers
-adjusting shipping fees due to outlying locations

When using this? segment pricing, a company may set different prices when selling a product in different states or regions. geographic segment pricing

This suggests that 80% of a firm’s business typically comes from the top 20% of customersThe Pareto principle

Which of the following customer group is least valuable to a sellerC

Buyer power on the internet is the result of all the following except: product costs

Companies select market-oriented pricing on the internet togrow market share

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