Answer to Question 1
E-tailing can provide many benefits over traditional brick-and-mortar retailing in terms of the marketing concepts of product, place, and price.
Product Benefits: Web sites can offer a virtually unlimited number and variety of products because e-tailing is not limited by physical store and shelf space restrictions. For instance, e-tailer Amazon.com offers millions of book titles on the Web, compared to a local brick-and-mortar-only book retailer, which can offer only a few thousand titles in a store because of the restricted physical space.
Place Benefits: As company storefronts can (virtually) exist on every computer that is connected to the Web, e-tailers can compete more effectively for customers, giving e-tailers an advantage. Whereas traditional retailing can be accessed only at physical store locations during open hours, e-tailers can conduct business anywhere at any time.
Price Benefits: E-tailers can also compete on price effectively since they can turn their inventory more often because of the sheer volume of products and customers who purchase them. Companies can sell more products, reducing prices for consumers while at the same time enhancing profits for the company. Further, virtual companies have no need to rent expensive retail space or employ sales clerks, allowing them to further reduce prices.
Answer to Question 2
TRUE
