1.3.4 Changes in distribution to reflect social changes

• Which pricing strategy is likely used for a new luxury smartphone?

  Price skimming
• Why might an online-only business choose direct distribution?

  To reduce costs and maintain control
• How does a new competitor's lower price affect demand?

  Demand might decrease as customers switch
• How could government subsidies for renewable energy influence solar panel supply?

  Supply would likely increase as costs lower
• What happens to the price when a popular product becomes scarce?

  Price increases due to high demand
• What are the benefits of online distribution?

  • Convenience for customers (24/7 shopping)
  • Reduced operational costs (no physical stores)
  • Access to a global market
• What challenges does online distribution face?

  • Dependence on reliable logistics and technology
  • Increased competition and customer expectations
• What steps should a local clothing retailer take to set up online distribution?

  Develop a website or use an online marketplace
• What is required to set up payment systems for online sales?

  Integrate secure payment gateways
• How should a retailer organize logistics and shipping for online sales?

  Establish a system for packaging and shipping
• Why is customer support important for online retailers?

  To address issues and enhance customer satisfaction
• What marketing strategies can promote an online store?

  Use social media and SEO techniques
• What are the challenges of logistics and delivery management in online retail?

  • Managing shipping times and packaging
  • Handling returns effectively
• What are the challenges of increased competition in online marketplaces?

  • Ensuring products stand out
  • Developing effective branding and pricing strategies
• What cybersecurity measures should online retailers invest in?

  • Protecting customer payment information
  • Safeguarding personal data
• What are the costs associated with setting up an online platform?

  Initial and ongoing costs can be significant
• What do consumers expect when shopping online?

  Fast and free shipping
• What does the shift from product to service entail?

  • Moving to subscription-based services
  • Offering flexibility for customers
• What are the benefits of shifting from product to service?

  • Predictable revenue streams
  • Environmentally friendly with less waste
• What challenges arise from transitioning to a service model?

  • Transition costs and customer retention reliance
• What is a current social trend affecting distribution?

  Shifting consumer preferences towards online shopping