Some Consumers Won't Purchase Products Online from Retailers Like Groupon

question 23

Multiple Choice

Some consumers won't purchase products online from retailers like Groupon, Buytopia, or Living Social because the products take too long to be delivered. Which type of risk is most likely influencing the decision not to purchase one of these brands?

• A) financial
• B) performance
• C) time
• D) social

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Definitions:

Price Elasticity

A measure indicating the extent to which the demand for a merchandise changes following a price adjustment.

Short Run

A period in economics during which at least one input is fixed and cannot be changed by the firm.

Long Run

A period in which all factors of production and costs are variable and companies can enter or exit an industry.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels at a given time.