What is price information asymmetry? Explain the reason for search online purcha

Question

What is price information asymmetry? Explain the reason for search online purchase offline behavior. How do search sites drive consumers to retailers? What are the benefits of barter? Who determines whether a price is fair? Why is price often a lightning rod for consumer complaints? What is price information asymmetry? Explain the reason for search online purchase offline behavior. How do search sites drive consumers to retailers? What are the benefits of barter? Who determines whether a price is fair? Why is price often a lightning rod for consumer complaints?

Explanation / Answer

1) A situation in which one party in a transaction has more inromation about the product compare to another one.

For example, a person who is not be in optimal health may be more inclined to purchase life insurance than someone who feels fine.

2) Customer is always searching online becuase they gain more knowldge about the product, compare with so many other products and choose best of them so choosing a product online best and then purrchase offline by touching it really.It's called consumer behaviour for the product.

3) For each stage in the retail consumer decision journey, we will surface any influencer that was the search sites, drive validation with consumer reviews and expert opinions but these have less impact on final decisions than online sites. Search,.

4) Benefit of Barter are as under:

5) The Federal Government often enters into contracts with various companies to establish the prices of items that will be sold to the Government General Services Administration (GSA). These are presumed to be fair and reasonable. If a Seller cites a GSA contract price, it must also provide the GSA contract number. If the GSA price is available from a website, the buyer must provide a copy of the webpage. This then is adequate rationale to determine the price fair and reasonable. The actual price may be lower than the GSA due to discounts, (if this is the case, it should be noted in the written analysis), or higher based upon volume sales discounts (supplier should provide their price break structure for volume sales).

Where an item has an established market price, verification of an equal or lower price also establishes the price to be fair and reasonable. Example: the purchase of metals such as lead, gold, silver, or commodities such as grains.

6) Because the most common problem about the product is price whether it is higher from market price or fair reasonable price taken by the seller so consumer complaints about it, even price is the only element in product placement which directly affects the whole process of business and consumer's budget too.

so consumer compares it with another seller and find out the fair price and know about the real price.

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