Mobile devices have vastly changed the shopping experience as we know it. With wireless internet being standard for cell phone users, more and more people are able to compare prices of in-store products. With the iPhone, you are able to download an app that you can scan the UPC code of a product and compare prices with online retailers.
An eMarketer research survey shows that 43% of internet users use scanning applications to compare prices. This has only made a larger competitive advantage for online retailers, as consumers are more price sensitive than ever. Free shipping is also a possibility, and buying out of state in most states allow for an even lower price due to not charging tax post purchase. The article also points out how the app creates a friction between people deciding to make impulse or on the spot purchases.
Retailers will have to begin to creating a new competitive advantage in order to battle these lost profits
That just goes to show you how far cell phones have come in the last few years. 43 percent of internet users use scanning applications to compare prices; I bet that number was less than 10 percent just a few years ago. cell phones now a days allow customers to be able to check prices from the palm of their hand causing retailers to have to deal with keeping their pricing competitive so consumers wont go to other stores.
ReplyDeleteThat technology really doesn't seem real to me. It's seems like a really cool idea that is technologically unfeasable. But, since it is real, I think it is going to change the way people shop, and how firms market their products to consumers.
ReplyDeleteI've tested the application myself. I went to the local book store in town and scanned a brand new copy of a new Redwall book. Priced $9.99 at the store, my app told me that I could buy it online used for 1.50 + 2.50 for shipping on Amazon.
ReplyDeleteI believe that phones and now "smart" phones have become a main vehicle for day to day living especially when it pertains to business. Marketers and businesses must consider and include mobile apps as a part of their strategy.
ReplyDeleteI have to say that this is a rather powerful market shaping item to me. Doing some on the fly price checking at a Babies R Us was eye opening, Grandbaby shopping, as I am many years out of practice.
ReplyDeleteThe real power of the new smart phones is truly amazing when combined with this kind of shopping power. It will surely disrupt some brick and mortar retailers.
I wonder if Wal-Mart will reinstitute an old policy or restricting cell phone use in the stores, probably not as they are web enabled now.
Is it bad etiquette to do an online purchase while in a brick and mortar, must consult with Miss Manners on this one.
Like Andy, I've tested the application myself. It truly is amazing!
ReplyDeleteI love this application on my iPhone. Especially with places like Sam's Club I'm able to easily compare to see if it's worth buying bulk!
ReplyDelete