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<blockquote data-quote="ki11erDM" data-source="post: 4844504" data-attributes="member: 58179">It would be nearly impossible for people on that side to actually have that evidence, not because it does not exist but because the LGS are so dispersed and highly varied.&nbsp;This is all about market segmentation; you sell your product to different groups depending on what they are willing to pay.&nbsp; Some people are willing to pay $10 and some are willing to pay $60.&nbsp; If you develop a product that can meet both groups’ needs and find a way to sell to them at the two price points you can efficiently extract the most amount of money from your market.&nbsp; This is a good thing.&nbsp;But the real world does not always follow economic theory or there would be no cross-over and no effect on the stores.&nbsp; In this case we really have 3 or 4 groups not two, one group that would never pay $60 for the book but wants it (no loss to the LGS), one group that wants the book and will pay $60 (no loss unless they buy it online), one group that really wants the book but can’t afford it at $60 but will make due at the $10 price (possible loss), and one group that can afford it but is not sure they really want it (possible loss).&nbsp; Now I am not saying that 3rd and 4th groups are a huge number… but it is a number, and they will buy the $10 instead of saving money to buy the $60 one.&nbsp; And to say this has no effect is ignoring reality, it does, just very minor.</blockquote>

[QUOTE="ki11erDM, post: 4844504, member: 58179"] It would be nearly impossible for people on that side to actually have that evidence, not because it does not exist but because the LGS are so dispersed and highly varied. This is all about market segmentation; you sell your product to different groups depending on what they are willing to pay. Some people are willing to pay $10 and some are willing to pay $60. If you develop a product that can meet both groups’ needs and find a way to sell to them at the two price points you can efficiently extract the most amount of money from your market. This is a good thing. But the real world does not always follow economic theory or there would be no cross-over and no effect on the stores. In this case we really have 3 or 4 groups not two, one group that would never pay $60 for the book but wants it (no loss to the LGS), one group that wants the book and will pay $60 (no loss unless they buy it online), one group that really wants the book but can’t afford it at $60 but will make due at the $10 price (possible loss), and one group that can afford it but is not sure they really want it (possible loss). Now I am not saying that 3rd and 4th groups are a huge number… but it is a number, and they will buy the $10 instead of saving money to buy the $60 one. And to say this has no effect is ignoring reality, it does, just very minor. [/QUOTE]

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