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Were you in the market for a Mercedes? Did you test drive one? Engage in the sales process but ultimately decide to go with another vehicle because Mercedes failed one of your buying criteria? Then yes, Mercedes lost the sale to a competitor.
If you were never in the market, or just engaged in wishful daydreaming, there never was a sale to be made. Similarly, if a bored teenaged hacker wannabe is browsing torrents and opportunistically downloads some books in passing, there never was a sale to be made. This action doesn't constitute a lost sale. If I shop Sony Connect for a particular book, compare it's price on Amazon for the Kindle Edition, get irritated at the irrational price disparity, and so actively seek out a stolen copy on the internet, then that's a "lost sale" and I'm a thief. Similarly, if I choose not to buy it all, because the price is just too high, that's a lost sale.
I think it's a pretty basic concept, folks.
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