Read the extract below and answer ALL the questions that follow: Online shopping attracted a great deal of attention from researchers over the past two decades. The advent of the Internet and other disruptive technologies has had a fundamental effect on how consumers buy goods and services today. People can now order groceries online to be delivered to their homes, but this is still a relatively new concept in the South African market. Consumers remain sceptical about this way of shopping. Many researchers have studied consumer behaviour of online shopping and the conceptual factors influencing their intention to purchase groceries online. However, the influence of personality traits on consumer willingness to adopt online grocery shopping is largely under researched, especially in South Africa. QUESTION 1 (25 Marks) The extract above briefly highlight the digital age that is upon us, and as such companies have to adjust to participate in the global and digital markets. Using relevant examples, critically discuss how companies should respond to the Internet and digital age that is upon us.

Read the extract below and answer ALL the questions that follow: Online shopping attracted a great deal of attention from researchers over the past two decades. The advent of the Internet and other disruptive technologies has had a fundamental effect on how consumers buy goods and services today. People can now order groceries online to be delivered to their homes, but this is still a relatively new concept in the South African market. Consumers remain sceptical about this way of shopping. Many researchers have studied consumer behaviour of online shopping and the conceptual factors influencing their intention to purchase groceries online. However, the influence of personality traits on consumer willingness to adopt online grocery shopping is largely under researched, especially in South Africa. QUESTION 1 (25 Marks) The extract above briefly highlight the digital age that is upon us, and as such companies have to adjust to participate in the global and digital markets. Using relevant examples, critically discuss how companies should respond to the Internet and digital age that is upon us.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter11: Marketing And Distribution

Section: Chapter Questions

Problem 19AA

See similar textbooks

Similar questions

Type the correct answer in the box. Spell all words correctly. Vivian conducted market research on her company’s products. She found that after the company raised the price of its product by $1.50, the demand in the uptown region remained the same with only minor fluctuations. However, she found that the demand in the downtown region dropped by 20 percent after the price change. How should Vivian take these demands into consideration? In a situation where demand differs in different areas, Vivian should consider the demand.
Describe the difference between an everyday low price strategy (EDLP) and a high/low price strategy
A study on how the demand for a particular combo meal will change in the next 12 months Descriptive research Correlational research Experimental Research Historical quantitative research Causal research
Answer the following questions: What product do you use that you would use regardless of the price? Why? Is this related to price elasticity of demand, or is it personal preference? Provide the URL for this product so we can learn more about it.
To conduct an experiment, AMC increased movie ticket prices from $9.00 to $10.00 and measured the change in ticket sales. Using the data over the following month, they concluded that the increase was profitable. However, over the subsequent months, they changed their minds and discontinued the experiment. How did the timing affect their conclusion about the profitability of increasing prices?
You were promoted as the manager of a new Clean-Well Sanitary Store that sells cleaning and sanitation products wholesale. You recently read in an article that there the price of vitamins is expected to increase by 20 percent. How will this affect your store’s sales of sanitation products? Items Selected Cross price elasticity Food supplements 0.34 Medicines 0.56 Foods 0.09
In 2019, a ski resort increased the prices it charged for one-day ski passes and season passes. If someone buys a season pass, he can ski as many days as he wishes. The table below provides information on the prices and the number of passes sold in 2018 and 2019. Number of Passes Number of Passes Type of Pass Price in 2018 Price in 2019 Sold in 2018 Sold in 2019 One day $60 5,000 $80 4,200 Season $1,200 250 $1,400 225 Given the information in the table, we know that the revenue earned from selling day passes changed by $ ,and the revenue earned from selling season passes changed by $
Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydney's marketing research has given him some estimates for the different locations as described in the decision table below. Alternatives Fort Alden Central City Roseville Answer Decision Table Strong Market 75,000 68,000 105,000 State of Nature Fair Market Step 1 of 2: Using the maximax strategy, where would Sydney decide to start his restaurant? O Roseville O Fort Alden 48,500 52,000 76,000 O Central City Poor Market 25,000 27,000 30,000…
Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydney’s marketing research has given him some estimates for the different locations as described in the decision table below.Decision Table State of Nature Alternatives Strong Market Fair Market Poor Market Fort Alden 75,00075,000 49,50049,500 35,00035,000 Central City 70,00070,000 54,00054,000 29,00029,000 Roseville 115,000115,000 80,00080,000 40,00040,000 Step 2 of 2 : What would Sydney’s anticipated payoff be…
Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydney's marketing research has given him some estimates for the different locations as described in the decision table below. Alternatives Fort Alden Central City Answer Roseville Decision Table Strong Market 75,000 68,000 105,000 Step 2 of 2: What would Sydney's anticipated payoff be for the maximax strategy? State of Nature Fair Market 48,500 52,000 76,000 Poor Market 25,000 27,000 30,000 Keypad Keyboard Shortcuts Tables
The more time consumers have to adjust to a change in price: the smaller will be the price elasticity of demand. the greater will be the price elasticity of demand. the more likely the product is a normal good. the more likely the product is an inferior good.
The product that I'll choose in this example are cigarettes. The price elasticity of demand for cigarettes is -0.87, meaning that a 10% price increase would lead to an 8.7% decrease in quantity demanded. The availability of substitutes is a key factor driving the price elasticity of demand for cigarettes. There are many substitutes for cigarettes, such as e-cigarettes, nicotine patches, or even marijuana. When the price of cigarettes rises, consumers can choose to switch to these substitutes or quit smoking altogether. The availability of substitutes makes consumers more sensitive to price changes, leading to a relatively elastic demand for cigarettes. do you think the product would ever go on sale? Why or why not?