The What Went Wrong Feature in Chapter 3 Is Titled

question 73

Multiple Choice

The What Went Wrong feature in Chapter 3 is titled "eBay Drop-Off Stores: How Feasible Were They?" What was it about the potential feasibility of eBay Drop-Off stores that worried skeptics from the beginning?

• A) that the stores would not have enough "quality" merchandise to sell on eBay and that the variety of items the stores would be asked to sell would be too broad
• B) that consumers were losing interest in eBay and that the stores would not have enough "quality" merchandise to sell on eBay
• C) that eBay was attracting too many competitors and that consumers were becoming increasingly Internet savvy, making it easier for them to sell items at online auctions themselves rather than relying on an intermediary like an eBay Drop Off store
• D) that the variety of items the stores would be asked to sell would be too broad and that consumers were losing interest in online auctions
• E) that consumers were losing interest in online auctions and that eBay was declining in terms of its popularity

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Definitions:

Diseconomies

Situations where economies of scale no longer function for a firm and higher production volumes lead to increased average costs.

Competitive Advantage

An edge a company has over its competitors, allowing it to generate greater sales or margins and retain more customers.

Shelf Space

The amount of area available for displaying products within a retail store, critical for product visibility and sales.

Different Scale

Often related to the concept of economies or diseconomies of scale, indicating variations in cost or production efficiency depending on the size of operations.