Questions: Adding an Internet channel is attractive to retailers with strong brand names but limited locations and distribution. makes it difficult for retailers to develop extensive purchase histories of their customers. allows customers the opportunity to use all five senses when examining and evaluating products. reduces the number of product alternatives that can be offered to consumers.

The answer is the first one: Adding an Internet channel is attractive to retailers with strong brand names but limited locations and distribution.

Explanation for each option:

1. Adding an Internet channel is attractive to retailers with strong brand names but limited locations and distribution.

   • Correct: This statement is accurate because retailers with strong brand names can leverage their brand equity to attract customers online, even if they have limited physical locations. The Internet allows them to reach a broader audience without the need for extensive physical infrastructure.

2. Adding an Internet channel makes it difficult for retailers to develop extensive purchase histories of their customers.

   • Incorrect: In fact, the opposite is true. Online channels often make it easier to track customer behavior and purchase histories through data analytics and customer relationship management (CRM) systems. Retailers can gather detailed information about customer preferences and buying patterns.

3. Adding an Internet channel allows customers the opportunity to use all five senses when examining and evaluating products.

   • Incorrect: Online shopping does not allow customers to use all five senses. While they can see images and read descriptions, they cannot touch, smell, taste, or hear the product in the same way they could in a physical store. This is one of the limitations of online shopping.

4. Adding an Internet channel reduces the number of product alternatives that can be offered to consumers.

   • Incorrect: Online channels typically allow retailers to offer a wider range of products compared to physical stores, which are limited by shelf space. E-commerce platforms can list a vast array of products without the constraints of physical storage and display.

In summary, adding an Internet channel is particularly beneficial for retailers with strong brand names but limited physical presence, as it allows them to expand their reach and customer base effectively.