Final answer:
(E) Showrooming refers to the act of examining products in physical stores but then purchasing them online, typically to get a lower price. Amazon is an example of a company that has benefited from the showrooming trend and economies of scale.
Step-by-step explanation:
The act of checking out products in traditional stores and then purchasing them online is referred to as showrooming. This term describes a modern shopping trend where customers visit a brick-and-mortar store to examine a product, but instead of buying it there, they find the product online, often at a lower price, and purchase it via an e-commerce platform like Amazon.
This practice has become more prevalent with the increasing popularity of online shopping and the convenience of having items delivered directly to the consumer's doorstep. It stands in contrast to the traditional retail model where the customer's journey begins and ends in the physical store.
Amazon has capitalized on this trend by offering almost any book in print, along with convenient purchasing and prompt delivery by mail. They maintain a highly automated and efficient inventory system in large warehouses located in low-rent areas to keep costs down. Despite recently opening retail stores, Amazon continues to be a prime example of a company that leverages economies of scale and showrooming behavior to its advantage.