Toy R' Us trying to defend against Wal-mart
1) Do you think consumer can have too much choice in shopping? What might this depend on?
Consumer can have too much choice in shopping as various choices provide consumers with a better picture of what they would like to buy. However, having too many choices can be quite a burden as it may cause confusion, make decisions difficult, and may be time-consuming. This might depend on several factors.
- Customers with budget constraint may not view too many choices as favorable as they choose products base on lowest price.
- Busy people with time constraints in shopping will prefer limited choices because too many choices will take too much time to choose a product.
- The type of product is another factor as consumers tend to require fewer choices for commodity good and more choices for luxurious goods.
- Personal preference is another factor as some people prefer variety of goods whereas others prefer not having too many choices at all.
- Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
2) Do you think the absolute lowest price for an item is most important for many consumers? What percent would you say comparison shop for the lowest price? What implications, if any, do you see from your estimate?
Absolute lowest price for an item can be most important for many consumers but not all consumer as it depends on factors such as income distribution and product type.
Income distribution has an impa ...