ECO 211 Lecture Notes - Lecture 3: Target Market, Macaroon, Rowan V. United States Post Office Department

• School: University of Miami
• Department: Economics
• Course: ECO 211
• Professor: Lorca Maria

Document Summary

Founded by a software designer in 3 days. Not a retailer or vendor, it"s a mall operator. Successful because it doesn"t deal with overhead, distribution, delivery, advertising, etc . Not too concerned with amazon: law of externalities = when a total market expands the market leader will get the majority of the growth. Concerned with fraud: yes, bad reputation can hurt the company. Most of their merchandise are collectibles because they"re hard to find and price. Only channel where you can touch and feel the product. Only one that has a person in front of you. Immediate gratification because you get the item right away. Risk reduction the theory that if you can buy it at store you can return it there so you feel better about it: 2. Convenience - you can order anytime, anywhere. Safety you don"t need to leave your house or go on the computer etc : 3.