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.
When people choose to shop online, they have to take the risk that the quality of the product is poor, the color is different, or the product is missing after it has been shipped from the merchant and so on. Compare to shop online, shopping in a physical store is more convenient and fast. Customers can touch and see the quality and color of the products; even they have the chance to try it. In this case, they have enough information to make the decision of buying or not. In addition, customers can shop with confidence because shopping in a physical store can make them avoid the risk in the process of payment, such as fraud.
However, depending on the situation they both are sometimes convenient ways to shop. Recently, in-store shopping has been more convenient for me because sometimes I just want or need something right away, but in reality I enjoy both ways of shopping. I believe that shopping preferences change depending on a person’s situation.
Testing the impact of perceived enjoyment can help retailers to more understand the customer behavior. Despite online retailing is popular today, but there is still lack of understanding concerning with the online retailing and its impact on marketing (Chua, Khatibi & Ismail, 2006). Overall, online retailers can enhance customer satisfaction and loyalty to their stores by offering competitive
The Shopping Experience Customers bicker back and forth on which shopping experience is better, online or in stores. A lot of customers have a type of shopping that is more convenient, and others rather stay away from in store shopping. Shopping used to be a hassle in the stores but with the newer technology shopping in the stores is so much easier than it used to be. A lot of people have thought about shopping on the internet, but people do not understand all the downfalls that come with it. The shopping experience is a type of opinion where customers debate whether they enjoy online or offline shopping, people always look at how quick and easy shopping is.
Even if the market were not perfectly competitive, we would expect firms to adjust prices regularly. However, researchers found that price dispersion in online markets is substantial and no narrower than in offline markets, even for standardized markets like books, CDs and DVDs. Although consumers usually do not have to spend money on searching, it is still time-consuming for most buyers. Some consumers are sophisticated users who use shopbots to find the cheapest shop quickly. In contrast, others who do not know how to search efficiently or do not have enough time may buy from the first site they find.
This in turn would result with low response rate, which may hinder the popularity of retail shopping. In conclusion, although there might be some factors that hinder the popularity of retail shopping, with its 24-hour availability, a global reach, the ability to interact and provide custom information and ordering, and provide a much more convenience way of purchasing, retail shopping is still at a upper hand position, which attracts more customers and increases it popularity. However, businesses should also pay attention to the factors that limit the increase of popularity for retail shopping and try to eliminate such factors in order to grow larger and become more successful.
Shopping trips begin online or at in-store kiosks, and price comparisons and coupon searches are increasingly commonplace. Customers are looking for trust relationships with retailers. They are guarding their resources, and have changed their shopping paradigm to be more selective and targeted. While it is generally the “brand” that brings retail consumers to the shopping environment, it is the retail “experience” that builds loyalty and keeps them coming back. Social media and mobile shopping initiatives may lure consumers into a retail environment.
It may be argued that the function between logistics and marketing is different. The former one is to deliver products and the general public impression of logistics is not too positive (Jackson 2011). On the other hand, marketing focus on customer management, that is making customers buy and satisfy with their purchases (Grönroos 2009). The cooperation of different departments can require more human and financial investments. However, one implementation of the idea of cooperation called Efficient Consumer Response (ECR) is successful.
With our powerful, easy to use, integrated set of applications, businesses can attract, engage, and delight customers by delivering inbound experiences that are relevant, helpful, and personalized. HubSpot is, after all, on a mission to make the world more inbound, one business transformation after another.”(Web) Inbound marketing is getting customer’s attention without interrupting their path. One of the most important parts of this method is lower average acquisition cost for new customer, which will attract them organically. Second, inbound marketing efforts have much lower cost per lead. However, the downside of this method is limited capacity toward its customers because HubSpot will only reach to those who are opted to see the message of the company.