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SHOWROOMING TREND: Aggressive Price Comparison Shopping Moves Beyond Automotive Retail

Mobile Device Empowered "Showrooming" Trend Drives Strategies Centered Around Price Competitiveness


So, while 14% of respondents this year report that their response to showrooming is simply to ignore it (double last year’s 7%), “laggards” (with comparable store/channel sales growth of less than 3%) are twice as likely as “winners” (with sales growth of more than 3%) to choose that response. Laggards are also 50% more likely to price match (24% vs. 16%).


Some of that disparity is due to winners simply not having had to deal with showrooming as much yet. According to the results, while only 27% of respondents overall report not having encountered showrooming yet (down from 43% in 2011), that figure rises to 34% among winners. By comparison, 29% of laggards haven’t yet encountered showrooming.


Overall, the researchers indicate that “retailers seem to feel that their advertised policies around mobile price transparency are enough to avoid further damaging their credibility – or conversely, that the practice doesn’t happen often enough that it’s worth changing their whole price strategy over.”


Other Findings:

  • The smallest retailers are far more likely than the largest retailers to ignore price comparisons (24% vs. 7%).
  • The largest retailers don’t appear to have a consensus about how to deal with the showrooming trend: 33% report aiming to be competitive with their pricing, but 27% say they price match.

About the Data: The data is based on an online survey conducted by RSR from January-April 2013, among 134 qualified retail respondents. 37% are from retailers with 2012 revenue of less than $50 million, while 33% are from retailers with more than $1 billion in revenues. More than half are headquartered in the US.

Views: 998

Tags: Aggressive, Automotive, Beyond, Comparison, Moves, Price, Retail, SHOWROOMING, Shopping, TREND


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