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Price Matching With Rebates Help Counter Showrooming Featured

  • Written by  Stephan Ross


Research_pieceWhen brick-and-mortar retailers match e-Tailer prices with rebates, the majority of consumers will shop and buy from them more often, according to a study released by parago in July 2013, titled Dynamic Pricing In A Smartphone World.

The survey of more than 1,000 smartphone owners found that Amazon is the No. 1 site shoppers use to compare prices when in stores, and that a price difference of just $5 can sway purchase decisions to Amazon. However, 67% of showroom shoppers will buy from a brick-and-mortar store when the Amazon price is matched with a rebate.

The study found that rebates, which provide healthier retail margins than instant discounts, motivated more in-store shopping and buying across all income levels and retail categories. The price-matching tactic can help retailers counter sales continually lost to showrooming, “which increased by 400% over last year,” noted parago in the report.

Dynamic Pricing In A Smartphone World also revealed that 58% of smartphone owners, or one third of all U.S. adult shoppers, now showroom regularly. Of those, 56% buy items on their smartphones while in store aisles. “Price is king for comparison shopping on smartphones while in stores,” the study indicated: “The majority of showroomers will buy a similar but not identical item they find on their smartphones if it is significantly cheaper.”

The study also revealed that 41% of showroomers compare prices in every product range. In addition, 23% compare prices on items priced more than $20, 21% on items priced more than $50, and 14% on priced more than $100.

The avenues used most by showroomers to compare prices included:

  • Amazon (56%);
  • Google (26%);
  • Apps (18%);
  • Customer ratings (15%);
  • Comparison web site (13%); and
  • Social media (11%).

 

For a complimentary copy of Dynamic Pricing In A Smartphone World, click here

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