A luxury can be defined as something that is an indulgence, rather than a necessity. Most people in the world would view items such as food, shelter, and water as necessities. In the United States, many would likely add electricity and indoor plumbing to that list. Today, many individuals are beginning to view Internet access as a necessity. But is it really a necessity—that is, essential for existence? If so, what about the individuals who do not have Internet access or those who choose not to use it? How might the perception of Internet access being or not being a necessity affect the growth of e-commerce?
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Answer:
luxury can be defined as something that is an indulgence, rather than a necessity. Most people in the world would view items such as food, shelter, and water as necessities. In the United States, many would likely add electricity and indoor plumbing to that list. Today, many individuals are beginning to view Internet access as a necessity. But is it really a necessity—that is, essential for existence? If so, what about the individuals who do not have Internet access or those who choose not to use it? How might the perception of Internet access being or not being a necessity affect the growth of e-commerce?
Explanation:
Step-by-step solution:
Step 1 of 3
Internet as a necessity and E Commerce
Luxury and Necessity:
Luxury or necessity for that matter is abstract concepts. There is no absolute definition for classifying a product or a service as a product or a necessity.
• There are some select products and services like food, clothing, shelter, healthcare and education which can be considered as an essential part of a human being's existence.
• It is almost impossible to imagine life without these basic necessities.
However, in the modern world due to economic and technological advancement there are quite a few products and services which have slowly moved from being a luxury to a necessity.
Electricity, plumbing and sanitation, Communication devices like telephones and televisions are just a few of the many products which have become a near necessity for the modern man.
The Internet: Necessity or Luxury:
• As mentioned above there are some products which have graduated from being a luxury to being a necessity. A modern day example for such a service is the Internet.
• The Internet was originally a technology developed by the US army in the 1960s. But in the last decade or so it has reached virtually every household of the developed world.
• While for developed nations, life without Internet is akin to life without electricity but for developing countries or for lesser developed countries situation may or may not be the same,
Some of the main causes for this have been described below:
1. Purchasing capacity of the user:
There are still live millions of people who labor throughout the day just to make their ends meet. For such people, a service like the Internet is very much a luxury.
2. Lower quality and Higher cost of Network:
Another reason for low penetration of Internet in lesser developed regions is that Internet data or bandwidth usage for the average user is more expensive here than in more developed nations.
3. Moreover, Internet providers are also not able to provide the same speed or the same stability as compared to western countries. This is due to various economic and technological factors.