Question
Asked Jul 11, 2019
26 views
  • What issues do the online businesses face?  How are they similar to offline competition? 
  • How are these issues resolved (market v. nonmarket) in the online and offline business?

Use the theory fo the 4 Is. Issues are understood as moral concerns, consequences, justice, and rights at stake which can be resolved by either market or non-market action.  

check_circle

Expert Answer

Step 1
  1. Before analyzing the issues related to online businesses, firstly we need to know what is an online and offline business. Online business is one of the forms of business activity where the buying and selling of any services or goods happen over the internet whereas an offline business is a traditional way of doing business by establishing a physical place where people can come and buy products as per their wish.

The issues faced by an online business are as follows:  

  1. Moral concern – This issue is mainly concerned with the harm or help that a business requires while operating online. In the case of online business, there are issues like finding the right product to sell, attracting the perfect buyers, generating targeted traffic, capturing quality leads, converting shoppers into paying customers, nurturing the ideal prospects, retaining the customers, etc. Thus, moral concern mainly focuses on retaining the seller in the market by earning a normal profit.
  2. Consequences – The consequence of a seller’s action in order to raise its sales and revenue have different impacts over its potential consumers, i.e., sometimes the customers buy that product as soon as possible while sometimes the customers don’t take advantage of a sale founding the product costly than the offline market. Thus. the profit earning majorly depends on the least price paid by the buyer in an online or an offline market.
  3. Justice – Justice in an online market is mainly related to the level of customers satisfaction. That means the online market is more concerned about their ratings, customers reviews, etc. so that other customers can easily buy and use their product.
  4. Rights – The right is a legal entitlement to do something; therefore, this is an important aspect to sell any product in an e-commerce market as if the seller doesn’t have any legal right to sell a product than that seller will be punished by the law for selling a duplicate product in the market.
Step 2

The issues faced by an online business doesn’t exactly similar to the issues faced by an offline business, but somehow both face the aforementioned issues. In the case of moral concern, the difference between an online and offline business is that an offline business mainly concerned with their geographical location, cost of remaining ideal, lack of coverage area, limited customers...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Matt Christopher is a 25-year-old mechanical engineer, and his salary next year will be $60,000. Mat...

A: Fr computing the savings made in each year, the salaries received in respective years is computed by...

question_answer

Q: A major demographic change that has been affecting the U.S. is the wave of retirements among aging b...

A: Labor Market: This is the market where labor and employees interact with each other and the wage rat...

question_answer

Q: The total cost of Mr. Plow, a snow-removal business, is given in the table below. Quantity adriveway...

A: Total Profits of 5 drive ways = Total revenues of 5 driveways - Total cost of 5 drivewaysTotal reven...

question_answer

Q: Question #4. Individual income taxes directly affect personal disposable incomes which in turn affec...

A: Income is the money that an individual or business earns in exchange for providing a commodity or se...

question_answer

Q: Suppose the demand function for widgets is Q(p) = 60 – p, and all firms that produce widgets have to...

A: We are given the demand function for widgets as Q(p) = 60 – pAnd, the cost function is given as C(q)...

question_answer

Q: If the reserve ratio requirement in the banking system is 7 percent, what is the money multiplier? A...

A: Money multiplier:Money multiplier can be calculated as follows:

question_answer

Q: Q 15. suppose the consumer's utility function is given by U(x,y) =x^1/4 y^3/4 where the equation for...

A: The  given information:The utility function can be written as follows:

question_answer

Q: How can insurance companies offer a guarantee to pay for certain medical expenses? How do they deter...

A: Insurance companies offer to cover for the risks. The company main aim to minimize the risk of the p...

question_answer

Q: If the Marginal Propensity to Consume (MPC) is .90, estimate the total (multiplied) effect of govern...

A: Marginal propensity to consume (MPC): The MPC is defined as the ratio of change in consumption due t...