Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rational behavior states that consumers stop consuming goods if the marginal cost exceeds the marginal benefits. This rule applies to consumer information search too. An
Rational behavior states that consumers stop consuming goods if the marginal cost exceeds the marginal benefits. This rule applies to consumer information search too. An online retailer is designing a web site through which consumers can order products. After a consumer checks out the online basket, he/she has to go through a number of steps (such as giving delivery address, putting credit card information, reviewing the order, confirming the order, etc.) before finally placing an order. Assume consumers' cost of navigating through the web-pages and putting information required by the retailer remains constant at $2.50, and the pleasure/satisfaction/utility that consumers gain in navigating the web pages for the checkout process declines by half every time they navigate through one after another page sequentially. If the average size of the check- out basket is $40.00, then find out what should be the maximum number of pages that the retailer should offer for the check-out process to get successful confirmation of an order from a consumer. O1 06 0 4 0 5There are at least 1 million ecom sites serving consumers all over the world. Assuming the minimum revenues of $100,000 per year and the number of meaningful ecom sites around the world to be about 100,000 I[these are the eCommerce sites with 100% market share} we see that to serve 500 million people each ecom site is left with XXX consumer persite.Thus, from XXX consumers each rm should generate at least $WWcustomerIyear. What is the value of WW? (31o (32o Qso (3.25
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started