1. With the increased usage of social media in today’s society, retailers now use these different social media outlets to advertise their products. Current technology has advanced to where the advertisements we see are often that of products we have already expressed interest in via online searches. I believe this trend of social media marketing is having a positive effect on internet spending due to how prevalent social media is in most people’s everyday lives.

2. Some other factors that would drive a consumer to purchase a product online rather than in store are that online stores have more selections to choose from and more stock available. Purchasing online would guarantee that the consumer’s product is available rather than being out of stock in the store or not having the specific product version a consumer desires. However the advantages of purchasing at a store are that the consumer doesn’t have to run the risk of the goods being damaged or lost during shipping which would delay the access to the desired product. When buying in a store vs purchasing online, the consumer receives immediate satisfaction rather than waiting for their product to be delivered.

3. The rationale behind this is that by decreasing store size and holding inventory in warehouses with cheaper rent in less desirable locations, will lead to a decrease in the retailers overall operating cost. Creating demonstration venues enables the retailer to operate out of much smaller stores because space is not needed for each locations inventory stock. Holding inventory in one location will allow retailers to have more control over their inventory turnover rate. The disadvantages of this solution, however, are that consumers would not be able to possess their products immediately after purchasing them. Having to wait for their product could cause consumers to purchase elsewhere or order