Holiday shopping season has arrived, and tough financial times mean that more people will probably be shopping around for the best price. But a new study co-authored by North Carolina State Universityâ’s Dr. Jonathan D. Bohlmann shows that shoppers who compare prices at multiple online retailers will not only find the best value, but will also likely contribute to driving down prices for that product at other retailers.
Are you Loyal or Switcher?
There are basically two types of shoppers: â’switchersâ’ and â’loyals.â’
- Switchers compare prices from multiple online retailers
- Loyals are committed to a particular store and donâ’t bother with comparison-shopping.
Retailers can have a variety of responses to increased pressure from switchers to discount their prices. For example, the study shows that some smaller retailers may try to focus on the loyal market â’“ and higher prices â’“ by avoiding price comparison Web sites and other tools used by switchers who shop around. Meanwhile, mid-sized retailers may take yet another approach, choosing to compete only against larger rivals â’“ essentially trying to beat the big retailersâ’ prices while still charging more than some smaller stores.
Who will shopping around hurt?
Large retailers. The studyâ’s findings suggest that if there are a lot of switchers widely comparing prices, big stores should limit themselves to a few small discounts â’“ since other companies are likely to offer more aggressive price incentives. (Get Article)
Personal Notes
I comparison shop all the time. But if a ‘Mom & Pop’ store (Main Street) has the same product I can get online, I buy it from the ‘Mom & Pop’. I do not shop at Walmart, Walgreens or any other boxed stores. Box stores hurt the economy more than the stock market failing, there is an economic cost to the US dependency of box stores.