Retailers such as REI and Neiman Marcus have generous return policies. Other retailers give price-match guarantees so if the consumer finds a lower price at another retailer; the lower price will be matched.
1. Discuss why some consumers are attracted to these retailers and why some consumers are not.
2. Consider what might happen to demand and supply if a significant number of retailers decided to implement the price-match guarantee.
3. Calculate how much, if any, the Internet has managed consumer uncertainty and risk.