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ACCA Applied Knowledge · Business and Technology · Technological factors

A retail company replaces its in-store cashiers with self-service checkouts and introduces an online ordering platform. Which of the following best describes the main way technology is affecting the company's external environment in this situation?

Technology is creating new ways of delivering products and changing customer expectations of convenience. Online ordering and self-service checkouts alter how customers buy. They do not remove legal duties, rivals or the need for marketing, and often make competition more intense.

  1. AIt is creating new ways of delivering products and changing customer expectations of convenienceCorrect
  2. BIt is reducing the company's need to comply with consumer protection laws
  3. CIt is eliminating competition from rival retailers
  4. DIt is removing the need for the company to have a marketing function

Explanation

Technology such as online ordering and self-service changes how products are delivered and raises customer expectations about convenience and speed. It does not remove legal obligations, competition or the need for marketing. Rivals can adopt similar technology, so competition often increases.

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