One of the easiest places to see the impact of the Internet on marketing is by l

Question

One of the easiest places to see the impact of the Internet on marketing is by looking at its effect on pricing decisions and consumer's perceptions of prices. Since its inception, the World Wide Web (WWW) has developed the reputation as being the place to shop to get the lowest prices.

Why has this reputation developed?

Why might it be possible to charge lower prices online?

Are products really cheaper?

To answer this last question, choose two products and find them for sale online (books, CD's, and software work very well). Calculate the total price that would be charged to your credit card, then go to a "brick and mortar" retailer and find prices for the same product there. Make your comparisons.

Where is the cheapest place to buy the products that you have selected?

What costs go into determining which place you buy your product?

Are there any non-financial costs to shopping online? To off-line shopping?

Explanation / Answer

World wide web is proven to be the cheapest place available for shopping as direct options which include buying from the supplier rather than going with chain of whole distributor which increases the overall cost of the specific product.

It's been possible to charge lower prices online as various factors including logistics and number of storage options have largely reduced. This type of approach has enabled world wide web to be more productive and to provide better prices to the customers by reducing and retaining all the other costs involved in operation.

Products are usually cheaper than the offline market because of the available cost savings in Logistic and storage options for the products. Product can be directly delivered from the factory and their houses at a large scale which reduces the overall expenses in multiple factors including profits for distributors and soap distributors which makes the products cheaper.

I tried buying a book and a DVD for a movie online and then I went to a brick and mortar store for buying the specific product.
Online availability of the product was much cheaper as I have various websites to visit at a single click and different offers were also present at different websites. There was a difference of almost $1 which was 30% of the total price for the DVD and book.
Definitely Where are non financial cost involved in online shopping as it increases the level of time involved in selection of the product as well as also create non-financial by involvement of comparison phase

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