1.What other current Internet trends do you see as having an effect, negative or positive,

on Internet spending? Explain your answer.

2. Fulgoni refers to two major factors that drive consumers to purchase online rather

than in physical stores: convenience and lower prices. What other factors would drive a

consumer to purchase a product online rather than from, say, the local Walmart? What

are the advantages of purchasing at a store?

3. Fulgoni states that the ability of consumers to use smartphones to scan barcodes at

physical stores and seek lower prices could radically alter retailers decisions in locating

and designing stores and warehouses. He specifically mentions retailers reducing the

size of physical stores, and using these stores more as demonstration venues with less

inventory, and placing warehouses in lower rent locations. Explain the rationale behind

this. Are there any disadvantages in this solution?