OnDemand WTP Pricing Research

Price transparency is dangerous | Pierhouse

ph.logo.sublogos.news.white-ARTICLEPrice transparency has become the new norm. It’s easy for shoppers to get information on the best prices from dozens of different sources without visiting lots of stores.  To counter this movement retailers now have tools to change prices very quickly.

Shoppers vs Retailers – guess who wins

One result of using these tools is that as shoppers become aware of retailers changing price up to nine times a day their trust in them starts to decline as they feel that they are being manipulated. To make matters worse shoppers find that they can’t use familiar key products as consistent price reference points to help them make comparisons or buying decisions. The bottom line is that while retailers love what dynamic pricing can do for them shoppers don’t like it or want it.

Lowest price can loose

It’s clear that too much intra-day pricing runs the risk of irritating shoppers and sending them elsewhere, even from stores that usually have the lowest prices. The best way to really turn off shoppers with dynamic pricing is when they discover that the price was cheaper just five days before.

Read complete article here:

Price transparency is dangerous.

2 Comments on "Price transparency is dangerous | Pierhouse"

Trackback | Comments RSS Feed

Post a Comment

WP-SpamFree by Pole Position Marketing