Chapter 6

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1.Is growth of the Internet, in terms of users, expected to continue indefinitely? What will cause it to slow, if anything? The number of internet users in the U.S. is expected to grow to around 215 million users by 2005, up from 170 million users in mid-2001. The growth rate of new users is slowing though, due to cost and complexity of computer use required for Internet access. Unless the price of computers drops significantly the internet growth rate will continue to decline. However, even if computer costs and complexity come down, it is unlikely that Internet use will equal that of television or radio use in the near future

3. Would vou say that the Internet fosters or impedes social activity? Explain your position. I would say both. The Internet probably both fosters and impedes social activity. It fosters it because socially network, e-mail, instant messaging, and blog.These things help people stay in touch with friends and family. Blogs also serve as a positive outlet for people to vent and or learn. The Internet may impede social activity because people choose to spend their time in front of a computer rather than engaging with family and friends. “A Stanford University study has indicated that Internet users lose touch with those around them; they spend far less time talking with friends and family face-to-face and on the phone”.

5.Research has shown that many consumers use the Internet to investigate purchases before actually buying, which is often done in a physical storefront. What implication does this have for online merchants? What can they do to entice more online buying, rather than pure research? The fact that many consumers use the Internet to research products before actually making purchases has many implications for online merchants because it suggests that e-commerce is a major conduit and generator of offline commerce. This could mean that e-commerce and traditional commerce should integrate to alleviate the concern. It is very...
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