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Will Online Storefronts Wipe Out Brick-and-Mortar Businesses?

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Submitted By ferainey9
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Will online storefronts wipe out brick-and-mortar businesses?
COM155
July 1, 2012

Will online storefronts wipe out brick-and-mortar businesses?

So consumers think they are knowledgeable shoppers, most look at every ads, coupons and bargain bins they walk past just to save a few bucks. At the end of the day they add up their savings and WOW the deals they got really saved money, but their excitement starts to wavier once they open their e-mail and there lies the deal of the day from Amazon and the product they just bought is much cheaper. As they look in awe at the deal and think to themselves, why didn’t I just go to Amazon and spend less? Were these prices really the cheapest out there? The employee’s at Best Buy said they had the best computer deals around and now they see the same product on Amazon for $100 less. When shopping consumers will shop anywhere and everywhere for the “great” deal of the day no matter if, it’s online or in a local store.
The world’s largest retailer Walmart is not immune to the effects of this online shopping revolution. The one thing that Walmart could always count on was having the lowest price and up until the last decade it did but then something happened, Amazon. A company called BrandIndex that specializes in the tracking of brand perception among consumer’s scores retailers on their business. The scores are based on customer feedback, positive and negative, which can range from -100 to 100. They looked at the prototypical Walmart shopper, someone who earns $50,000 or less and compared Amazon to Walmart. Up through 2009 Amazon and Walmart ran neck and neck both with scores of 10s to 50s, but then in 2010 Walmart stared getting consistent scores in the 20s and 30s while Amazon was looking at 50s and 60s with their scores. Amazons latest score in April was a staggering 71, but the analysts who look at these

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