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Showrooming Case Study

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Showrooming in BestBuy
"Showrooming" was considered the new consumer behavior after E-commerce (online retail market) has emerged which was expanding at a rate of 17% per year. "Showrooming" is when shoppers enter the physical stores to view the features of the products in which they want to buy and they would leave the store and purchase the products online for lower prices. This consumer behavior poses a great threat on the brick and mortar retailer stores by creating an alternative to buying products for much lower prices which impacts a number of sales the retail stores are making. Another factor that contributed to the concept of showrooming was the new price matching mobile applications which allowed consumers to make price comparisons
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With customers showing up at their stores to only test the products ' features, best buy as a result, had a loss in their sale. The impact of showrooming has created a challenging task for best buy to keep their sales up and to also keep their customers in the store to purchase their products. First best buy had to better understand their customers’ behavior to come up with the best solution. After a survey was done they found that the main three reasons customers were showrooming was for better online prices, the desire to view the product in person before ordering online and to also buy the product without issues with out of stock retail stores. To complete the task best buy announced that their store was going to match their prices with major online competitors such as Apple and Amazon and retail…show more content…
The price-matching policy has its negative effects but at the same time, it gives best buy to option to retrieve its sales among the new online competitors. As a CEO, I would keep the permanent price-matching because it’s one of the few reasons why customers would visit the store and buy the product they need for a reasonable price. Also the fact that price-matching might seem more convenient for the customers since there is no need to wait for the shipment of the product because not everyone can afford Amazon prime to get their products shipped soon enough. Another reason why I would continue the policy of price matching is that there are more benefits that the company can gain if they price match the showrooming products and at the same time place non-showrooming items with higher prices so that the company can gain back the sales they have lost as they purchase the products from the store. Customer service also plays a very important role when it comes to convincing customers to buy from the store because shopping is not always about getting the best price but also about the shopping experience. Many people value the idea of going out shopping and physically seeing the products in which they want to buy, so if they have the great experience along with that, they will most likely prefer to buy from the
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