Online_Sales_Suitability

Online_Sales_Suitability - University of Southern...

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University of Southern California Marshall School of Business BUAD 307 Lars Perner, Ph.D., Instructor Marketing Fundamentals Spring, 2012 SOME DETERMINANTS OF PRODUCT SUITABILITY FOR ONLINE SALE 1 Please note that this is an evolving list in a rapidly changing environment. Criterion Issues Value-to-bulk ratio High value, low weight/volume items can be more readily handled and shipped. Note that “bulk” here refers to anything that makes it more difficult to handle an object—e.g., weight, size, odd shape, fragility, or hazardous material. Absolute margin “Absolute margin” refers to a dollar amount rather than a percentage. Even if the percentage margin on a high price item is low (e.g., 15%), the absolute margin can cover considerable expenses (e.g., 0.15x$1,000=$150). On the other hand, if a $5 item is marked up 100%, that still only leaves you $5 to work with. Ability of consumer to evaluate quality and fit through online description.
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This note was uploaded on 04/01/2012 for the course BUAD 307 taught by Professor Morristowns during the Spring '07 term at USC.

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