1. Give two reasons why online shopping makes the market extremely competitive.
- Because is eaier for consumers to compare prices across afar bigger selection of items than a trip to the high street.
- Price comparison, shoppers can compare prices on any product to get the best deal.
2. Why are retailers who sell products bothonline and in shops in a difficult position?
Because internet retailers have been able to offer cut-throat prices, they don’t have to bear the cost of running a physical shop
3.Why is thepractice of dual pricing only a short-term solution, according to Mr Gladding?
Because the retailers keep their positions on line while maintaining margins in their shops
4. How can retailers makethe best of both the online and offline world?
Retailers should probably try to integrate the two as much as possible. Some businesses, for example, have set up their operation to allow customersto shop online, over the telephone or in stores.
WORRY FOR RETAILERS AS WEB SHOPPING CLICK INTO PLACE
For traditional stores, online shopping has become a cause for concern in a difficult retailenvironment. the internet is accounting for more spending than ever. In easier for consumers to compare prices across a far bigger selection of items than a trip to the high street.
"The way theinternet encourages people to shop about is having a big impact on the market, says Nick Gladding of verdict research, a consultancy. Internet retailers have been able to offer cut-Throat pricesbecause they do not have to bear the cost of running a physical shop.
Price-comparison web-sites such as kelkoo, where a shopper can compare prices on any product from DVDs to Prada perfume to get thebest deal, make the market even more competitive online because you are always just one click away from a rival, says a CEO.
Retailers selling electrical goods have been particularly hit by the...