1.What other current Internet trends do you see as having an effect, negative or positive, on Internet spending? Explain your answer.

One trend that I see having a negative impact on Internet spending is identity theft. I personally know many consumers who are afraid of buying anything online due to the fear of being susceptible to identity theft. These individuals have either already been a victim, or have heard/read/seen some sort of press on it. To the lay individual, some of the phishing sites look and feel very authentic and they can get scammed for either their money or their complete identity. As internet security gets better, hopefully this fear will go away.

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?

I can name a few factors that can drive a consumer to purchase a product online versus in store. I have found that when you purchase something online, lets say a blender from Walmart, you typically have greater options online with one being color. If my entire kitchen color scheme is red, and I really want to have a new red blender, I would look online first because the likelihood that the store would carry one is slim. Another example of why to purchase online is size. If you wear a specialty size, Big & Tall for example, you have more options of products online. Some stores/brands do not carry B&T in store at all, but they do online.

Advantages of purchasing at a store can be that you have the opportunity to actually feel the product. By feeling it in your hands you can tell if it is made well (ie. thin or thick material, cheap plastic, etc). You also have the opportunity to