Recent research revealed the new consumer behavior:
comparion app usage surges over the weekend, especially on Saturday, then
online purchases follows on Sunday and Monday. What caused this strange patter?
On Saturday, a consumer looking a for a new TV
would drive to their local Bestbuy, carefully looking at the TV sets in their
show room, writes down prices and features (most like took a picture of price
tag), and pull out their smart phone, open the camera and start scanning the
bar code. The application, within a few seconds, shows the same products prices
from different venders. Consumers then walk out of Bestbuy with a smirk on the
face, thinking “yep, I did not get ripped off by Bestbuy”. Once get home, or
even just on the mobile phone, consumer can get purchase the same TV from a
other website with much cheaper price.
Mobile phone changed consumer behavior
significantly. Bestbuy becomes a showroom rather than retailer who sells
electronics and makes profit. It is a huge challenge that Best buy faces that
how to turn foot traffic to revenue.
Rather than reasonable pricing, (which does make it
more difficult as it has more overhead cost than the online store), Bestbuy may
also try to organize its own online store. It may use different pricing for its
online store. Utilize their physical store “show room” function, to its own
advantage. Offer different discount in its physical store to attract buys back.
Price matching can be also a strategy that consumer can pay the same price but
get the product right away. Either way, in order to survive, bestbuy need to
face the chanllege.
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