wider economic environment

• What do price comparison sites help consumers with?

  Increase knowledge about goods or services
• How do price comparison sites reduce information asymmetry?

  By allowing consumers to compare suppliers easily
• How can consumers use price comparison sites for insurance policies?

  To compare different suppliers' offerings
• What is viral marketing?

  Marketing that encourages sharing among viewers
• What platforms can firms use for viral marketing?

  Facebook and Twitter
• How can firms benefit from social media marketing?

  By increasing brand awareness and sales
• What is micromarketing?

  Advertising focused on a small consumer group
• What is an example of online retailing?

  Amazon
• What issue might arise from the demand for digital skills?

  Skills shortage in some firms
• What does the long tail theory suggest about online retailing?

  Wider choice of products for consumers
• How do online retailers benefit from low storage costs?

  By stocking a wider range of products
• What is a niche product example mentioned?

  The Cambridge Satchel Company
• How has the digital economy affected famous brands?

  It has contributed to their loss
• What impact does technological change have on production costs?

  It can lower production costs
• How have mobile phones changed due to technological advancements?

  They have become cheaper and better quality
• What market change occurred due to the rise of downloadable films?

  Destruction of the VHS market
• What is creative destruction in the context of the digital economy?

  New competition leads to firm failures
• What are the impacts of the digital economy on markets and firms?

  • Changes in consumer access to products
  • Influences on price and choice
  • Loss of famous brands
  • New competition and opportunities
  • Creative destruction process accelerated
• What are the implications of online retailing for businesses?

  • Increased demand for digital skills
  • Ability to stock a wider range of products
  • Access to global markets
  • Potential for niche product sales
  • Challenges from new competition