E-mail updates
Follow on Twitter
Subscribe to RSSSanta was no match for tech-savvy shoppers during the holiday season.
When it came to finding the best products and the best prices, more than half of consumers came armed with their cell phones to help them make purchasing decisions. And just as traditional brick-and-mortar retailers feared, many of those shoppers decided not to buy merchandise from stores they visited thanks to information they got via mobile phone comparison shopping.
Those findings come from a study released Monday by the Pew Research Center’s Internet & American Life Project, which found:
- 38 percent of cell owners used their phone to call a friend while they were in a store for advice about a purchase they were considering making.
- 24 percent of cell owners used their phone to look up reviews of a product online while they were in a store.
- 25 percent of adult cell owners used their phones to look up the price of a product online while they were in a store, to see if they could get a better price somewhere else.
“Consumers are feeling like they have a leg up on retailers,” said Esther Swilley, assistant professor of marketing at Kansas State University, about the increasing use of mobile devices to bargain hunt. “They can get price quotes quickly, and they now realize, ‘I can do better than what you’ve got here.’ ”
Not surprisingly, the under-50 crowd was more likely to use mobile devices for online product reviews, and urban and suburban cell phone owners were about twice as likely as rural users to have recently used their phones for product analysis.
Minority mobile users were more apt to look up online reviews than white cell phone owners; and college-educated shoppers were more likely to dial for deals than those who did not attend college.
Retailers who are worried about consumers’ new-found independence, she added, are going to have a hard time curbing these cell-phone price crusaders.
Target recently moved to try and derail mobile deal seekers by asking some manufacturers to create Target-exclusive items that would make it harder to comparison shop. The retailer, along with many other merchants who rely heavily on in-store sales, don’t much like the growing habit of “showrooming,” an industry term for shoppers who use stores as a place to check out items and then buy products online at lower prices.
Such fears, it turns out, are warranted, according to the Pew study.
Researched asked respondents what actions they took after using their phones in stores to look up prices, and 37 percent said they decided not to buy the product at all.
In addition:
- 35 percent purchased the product at that store.
- 19 percent purchased the product online.
- 8 percent bought the product at another store.
That’s just the beginning, said Eric Johnson, management professor and information technology expert at Tuck School of Business at Dartmouth University, who expects mobile devices will become a shopping mainstay.
Retailers such as Target and Best Buy, he said, have been the most worried about how the technology will undermine sales because of the “petting-zoo phenomenon,” but they’ll have to learn to embrace it given the potential upside.
Savvy merchants are using mobile technologies to “augment the shopping experience,” he explained, pointing to Wet Seal, the junior apparel chain, as a prime example.
Wet Seal offers its customers an app that gives them suggestions for ensemble pieces, or accessories, when they scan codes on merchandise in the store. They can buy the products in the store, or go to a virtual shelf online and purchase the color or size they want if it’s not in stock, he said. Mobile users can upload the outfits to Facebook so friends can offer their “likes” or “dislikes” before shoppers buy.
This type of mobile integration, he said, “is where the real excitement is.”
Traditional retailers, he continued, “can’t just employ defensive moves to make it difficult to compare, but they have to find substantial ways to connect with the shopper in the shopping experience, and do that with mobile apps.”
Related story:
Target tries to fight off online retailers
Leave a Comment:
Well I guess it's time to stop acting competitive and actually BE competitive.
If Target tries this, they will just get left behind, as consumers will quickly wise up to the trick and simply avoid Target. I know I would!
I don't often go out with the intention of "showrooming" (unless I know I've found an unbeatable deal online and just want to look at the thing before I buy it online). I'm also willing to pay some amount more for the privilege of taking the item home right now in most cases. But I'm not willing to get ripped off for 30% or more of the purchase price for instant gratification, so the b&m stores need to be more competitive. Maybe get rid of a lot of the fluff execs, like the advertising department and the bean counters that try to figure out how much they should be able to rape customers for. Then they won't need so much of a mark-up in the first place.
You don't get it. You are not being ripped off. You are paying for the conveince of seeing the physical item and for my skills in choosing and displaying things you want. I have to pay rent, utilities, employee costs, inventory costs to put that item in front of you and make you want to buy it. I don't have room to be more competitive in price because I am paying for those things, plus don't get the discounts the big kids do. So you use me and then go to big boxes or online. How long do you think we can stay in business under that plan?
Then you, Mr. Retailer - need to find a way to convince us that there is value in what you are doing as compared to the online reseller. Far too often, I walk into a retail store with the intent to touch and test and evaluate what I'm about to buy. More often then not, the product is out of stock or in stock and open for evaluation but doesn't operate because it is broken or has batteries that are dead. So then I wonder, why did I come in here in the first place? I can get the price and the service from reputable online retailers. I can get the product quickly and return it if it doesn't work as advertised or isn't to my liking. So, Mr. retailer, thank you for explaining your overhead but more often than not, you haven't proven your value. Otherwise, I wouldn't mind paying you a few percent more to cover your overhead for some perceived value. The day of brick and mortar thinking they are the only game in town has come to an end. They have online competitors that can offer quick delivery and good customer service. I'm finding myself in retail stores less and less and shopping A____n more and more. Retail has to figure out a different model.
Sams & Coctco have been doing this for years specifically in the electronics & even more specifically Sony (look for an X on the end of the model #.
Exact same product but generally a similar price as the online store (without the X) except no Tax & No shipping (Amazon prime members) Which represents a considerable saving, or does until uncle Sam finds a way of taxing online sales.
Janet, thanks for the explanation. I do understand how you feel. But whatever you believe, when I feel like I am being ripped off, it's going to be an uphill battle to convince me other wise. Cases in point, all within the past 3 months:
1) Went to local Best Buy for an item, it was out of stock. Wanted to look at a similar item, they had it but didn't have one on display and would not open a box to put one on display. Went home and bought item at Newegg for about half the Best Buy price. Local sale lost.
2) Was directed to Home Depot by a product manufacturers web site. Went to local Home Depot, they said item was special order and could only show it to me in a catalog. The catalog contained the exact same picture and text as the web site and there are no returns on special order items. Local sale lost.
3) Went to local Radio Shack to look at an item. Found it locked in a glass case. Wait 20 minutes for a sales droid, none available. Left store and purchased online at MonoPrice for less than half the cost at RS; local sale lost.
4) Went to local auto parts store for a few items to do car maintenance. They had most of the stuff, but not all. What they did have was 50-80% higher priced than online, even when I included shipping. Decided I could wait a week to do the maintenance and ordered online, saving about $97; local sale lost.
5) Was notified by my car's manufacturer that certain accessories were on sale and offered coupons to present to dealer's parts department. Went to local dealer who refused to honor coupons. Ordered online saving almost $180; local sale lost.
6) Went to Walmart (grudgingly) to purchase item advertised online as on sale. Store said item was not on sale. Before leaving the store, used smartphone to order item online and get it shipped to store for FREE. Went back to same store a week later to pick up item at sale price saving about $75; local sale lost.
7) Went to local Lowe's to take advantage of sale. Found item in stock, on display, and it even worked! Was shocked! Purchased it on sale; local sale captured! Still in shock!
Sadly, customer service, in-store help, and ability to examine in-stock items on display in a b&m store is sadly lacking today over what it was 20 years ago. But we are still expected to pay for that, even though it's mostly not there any more, at least in my experience. And I won't. Perhaps your store is different, but most are not.
"More consumers using smartphones while shopping".
Stop the presses. In other news,
"More people using toilets while at work."
Best Buy has turned into a Catalog showroom for me. I go in and check out the merchandise and then scan in the bar code. Every time amazon or some other online retailer has it cheaper and i place the order right from my phone. I purchased a TV and DSLR camera this way last year and saved over $700 on Best buy's prices. The TV was $500 cheaper delivered to my door and i used my AMEX points towards the purchase. Beat that Best buy.
The best thing BB can do is be purchased by Amazon. Amazon should use BB as nothing more than a showroom with the ability for customers to return items locally if they prefer not to ship them back. They can go to the showroom to evaluate, touch and order from a kiosk. BB has little value. They don't have educated sales associates, they don't have demo product that is functional and they don't have the price - often competing with themselves at bb.com. They certainly blew their last opportunity at Christmas time by not properly anticipating Christmas time volume and inventory management, leading to cancelled orders, more pissed off customers and literally steering them to Amazon for last minute deliveries!
Target sucks any way. Bought a pair of $ 6.00 baby shoes ,wrong size returned them next day w/ reciept they did not have the size I needed and would not return my money. I left the shoes there and have never been back. Then went to Wal Mart returned a couple of items the wife bought with out the reciept. They took the items returned my money no questions asked. Where would you shop ?
I would shop at Target.
I had the exact same experience but reverse the names. Target was great but Walmart was bad.
I would shop at Target, any day, hoping to avoid time wasters like crybaby here.
Idiots that constantly buy and return things are nearly as bad as shoplifters in driving up costs for those of us who do our research and buy the right things in the first place. IMO, all non-defective returns ought to incur a 25% restocking charge so those of us who don't abuse it don't have to pay for careless indecisive shoppers.
I can agree with that GeneralEclectic. It's not the store's fault that Arch Stanton-3161898 couldn't make sure of the show size before purchasing. I've only ever done returns due to defective/ broken-on-purchase items.
So I assume the last two posters here think I should drag my dining room table into the store to make sure the color of a centerpiece bowl looks good with it? Thanks, but I'll leave that task to you. I'll buy the bowl and return it if it doesn't go well when I get home. Sheeeesh!
I don't own a smart phone, but I thought that was the whole point of owning one, to check for bargains (plus GPS, plus e-mails, etc). If you are just making phone calls or taking a quick photo or video, any phone will do.
I have noticed that little antique shops and boutiques have signs posted "no photos or videos allowed" in the store. I'm pretty sure that's to stop people from checking an item's worth on eBay before making a purchase from the local store.
It's not even just antique shops. The women's clothing store Delias warned me that trying to take a photo of a shirt to see if my fiancee would like it is attmepting to copy their copyrighted shirt design and is illegal. Why can't I be sure of my purhcase decision or take photos? I'm not out to sell their shirt design to the highest bidder.
I use the app that amazon puts out. I use this everywhere if I don't get service from an associate. If retailers won't spend the money to put someone on their floor to help me, I might as well shop to save a dollar since I am getting the same service. I also hate waiting on line to check out.
We provide both an attractive display in a physical space ($$$) and really nice, knowlegable employees. Some people appreciate that and some just use us to see the item physically and get help and then scan it and buy it elsewhere. Our prices are reasonable and it is painful to know that people want to use us and then buy from Amazon. This may sound foolish now, but you are going to miss us when the lovely, unique little shops are gone, with all the personal attention, and all restaurants are Taco Bell.
I'm sorry, but you just sound like you are whining because retail will never operate like it used to, and you are trying to cover that with complaints that it isn't "fair".
I never intend to purchase anything in a store again without scanning it first for price comparison and reviews. Does that mean that I will always buy from the cheapest online retailer? No; I'm willing to pay a few percent more for the immediate gratification and ability to return something easier if I'm not satisfied with it. In fact I think it is the ability to make an easy local return that sets brick & mortar retailers apart.
Instead of fighting this, B&M retailers have to go with the flow. The fact is that many retail establishments are going to go bankrupt. That will lead to an even bigger glut of commercial real estate. The price of commercial real estate in most markets still needs to fall 30%-90%. This will lead to commercial eventually being lower. Landlords will have no choice - either leave property vacant with zero cash flow or accept that rents will be permanently lower than anyone ever expected. Ultimately this will bring you some relief to the rent you have to pay.
One thing B&M retailers need to start doing BIG TIME is lobbying for the elimination of sales tax. Don't even begin to think the solution is to try to bring internet retailers into the tax scheme; that is just short sighted. In order to compete you have to stop charging your customers tax.
tiredoflookinginthemirror. You have 3 fingers pointing back at you. Go wait by the mailbox.
What Janet is missing out on is the big online stores like Amazon (and even Best Buy) have customer reviews and their own affiliate competition (as well as open box and used item pricing). They also have detailed manufacturer specifications for many items, and allow you to figure out if an item is this year's or an old model. What about the value of these services to the consumer vs. the bricks and morter store that lets you "touch" the item, but often know nothing more about it. Although the experience is different, to say that the online retailers offer nothing servicewise to a bricks and morter store is an overly simplistic take.
This trend is only confirming what stores like Wal-mart have taught the American consumer. And that lesson is that cheaper prices trump customer service.
Best Buy has a right to be worried! They're waaaay over priced on everything. My favorite is going in then scanning to find a cheaper price at Wall Mart and then having Best Buy price match all within a matter of minutes. Doesnt work for Game Stop they don't price match. But its best to avoid them at all costs anyways.
I've been doing this for years are people now just realizing smartphones have internet and barcode scanner apps?
GameStop has price match. They just wanted a print ad
I will use one of the various scanners available out there. I've caught a couple of retailers that show one price in the app, yet have a shelf tag with a higher price. I politely inform a manager of my findings and ask them to match the price which they usually do.
I have had a couple of companies that are unwilling to match the price, at first, but when I ask the manager if they really want to watch money walk out the door over a couple of bucks, they will generally match the price.
However, the glaring exception to this is Staples. I was looking to purchase a $599 laser multi-function device. I found that OfficeDepot had the same printer available for $499, but since I was actually in Staples at the time (with a cart loaded up with about $300 worth of other needed supplies) I asked the manager if they would match the OfficeDepot price. He refused. I asked him if he really wanted to watch $800 walk out the door, and he said he was fine with that.
So, OfficeDepot gained my business on that day, and on most every other day after that.
This is probably the reason there's no Wi-Fi in Walmart. The Dillon's across the street from me has offered internet since they opened a couple years ago. I wish Walmart would join the party on this one.
Why would you NEED wifi. Its not like its going to max your data plan to do a few product lookups... but since you don't know this most likely you don't have a modern smart phone all which come with mandatory data plans.
Modern smart phones *don't* all come with mandatory data plans. There are plenty of MVNO operators that will let your "bring your own device". Buy your smart phone on eBay, and get a pay-as-you-go plan.
I end up paying about $30 a month for my cell phone plan, and I've got a modern android phone with all the bells-and-whistles I could hope for.
Let me get this straight. You want Walmart to provide a service (that they pay for) at no cost to you, so you can not spend money at their store? Why would they do that?
I dont go to a store to SHOP, I go to a store to get the items I already know I am buying. That being said I sit in the comfort of my home make a list, research whatever and check prices before I spend hours driving from store to store. I will pay alittle more if what I want is on a shelf but I wont be taken for a ride. I really think the STORE is on it way out as more people are buying online. I would rather go to a Magnovox, Hitachi, Whirlpool or what have ya brand and try out the product touch it see it feel and then make the purchase either there or somewhere else. Basically a product showroom where the people there know that product and that product only. Can answer my questions without that deer in the headlight look and me walking away having less information then when I got there. Eliminate the middle man buy direct from the manufacture show room.
If we continue to expect more and more discounts from retailers, expect to take a pay cut yourself, no matter your industry. China is not going to discount the stuff they sell us, so in this case it's pretty much on the retailer or website to take the hit. And as far as buying from websites gos, remember, they don't employ as many people. So expect to cuts in hours, and entire positions as well. Isn't deflation great?
Yes, it's really sweet for the people who come in my little shop, ruin the ambience and talk loudly on their phone, use my hard work and inventory investment to physically see what they want, scan the bar code and get it for a little less from some megastore. Don't you people get that if you continue to do this, the people that are providing the free showroom are going belly up and then where are you going to physically see it. More importantly, I've worked hard, used my skill and good taste to find things and display them. The bottom line is that you've decided to use that for free and then once I've shown you what is great, you buy it from someone else. Most independents will soon be gone and all restaurants will be Taco Bell. I love my customers, spend time with them, explain the issues, give lots of personal service for very reasonable prices. And more and more, they take it and piss on me. That will not continue. I can't be an unpaid showroom for Amazon.
Then they don't like the difference in price. It's as simple as they don't believe the service offered if worth the extra price (if it was only a "little less" most people would purchase the item from you). Also what's with the Taco Bell analogy? Why not try an actual possibility such as all restaurants will be owned by McDonalds?
No offense intended, but competition is all about innovation. Those who don't innovate and offer something that the online stores can't, won't survive.
I use a bar code scanner on my android phone when I shop. I look to see if I'm paying a serious amount more, sure. But more importantly I'm looking for more info on the product.. I want to know what other people have experienced.
Frankly this more than price influences my buying decisions most of the time.
I do understand about overhead.. and I will choose to travel to other b&m stores (Fry Electronics beats Besy Buy nearly every time) if i find they have a better price and aren't too far. I prefer to buy at a store - but will buy online when it makes sense.
as with everything, YMMV (Your Mileage may vary) - Keep talking, discussing and thinking - thats what keeps us a great country despite everthing!
If I'm in a store, shopping, it means that I want or need the item right now. If I can wait, it's usually coming from Amazon using my prime membership, which includes 2 day shipping. The only time I use my smartphone to look up prices is when there is no price tag and the only scanner available is the bar-code scanner app in my Android phone. I comparison shop online, the majority of the time and order online 95% of the time. It's more convenient and saves on time and gas. Groceries are the only items that I go to the store for on a regular basis.
Oh by the way, in a recent trip to Home Depot, I could not access the Amazon website through their in-store Wi-Fi hotspot on my Android phone. I believe they blocked it. I was able to get to Amazon website instantly when connecting to my home Wi-Fi. So, Walmart not offering Wi-Fi is probably a strategic decision on their part.
The barcode scanner on my smartphone has probably saved me hundreds of dollars over the past year and saved me from making some bad decisions on products.
If I know what I want in a store, I usually researched it online before I bought it and figured going to the store is quicker (because I also compared prices and checked to see if they have it in stock before I even set foot in the store).
Using my smartphone is more for when I am browsing and I come across a product on sale. I scan the barcode and instantantly have reviews, price comparisons, and can make a more educated choice about the product rather than be taken in by pretty packaging or the advertised savings.
For reviews, they have saved me from buying things that have looked good or sounded good but would have been a bad idea (or maybe the product was defective and had many complaints).
For prices, I can weigh the cost of having it now versus the benefits of most likely waiting two days and having it then for a much lower price. I've found stuff on Amazon from products in the store that are more than a hundred dollars off before and in many cases, I've ordered the product from Amazon before I even walk out of the store. Other cases, I've said that I'd rather have the product now and have a physical place to return it to should the product fail.
The bottom-line is that consumers are looking for the best deals and the smartphone levels the playing field so that the consumer can be educated rather than just listen to one sales man or woman. (Try that, have a sales person tell you about the product...then say you will think about it and look it up on your smartphone...chances are that you will find out more and maybe even realize that the sales person does not know what they are talking about. Or, if they are honest, you can always make sure you buy from them.) The smartphone is a tool and I am happy that I have access to it. I would never shop any other way again.
(One other thing...the smart phone also exposes which retailers care about maintaining a good presence on the web and which do not. In more than one case, I have found that some websites...like searching for things at big box hardware stores has been terrible because their search engines return so many bad results. That's also why the barcode scanner apps are so popular...because they find the product if it is out there on the web and it might not be on the website of the store you are in. Having a good wesbite experience, like being able to check stock on a product before I drive there is essential to getting my shopping dollars.)
Fox Celebrates 10 Years at No. 1, Rings Opening Bell at NASDAQ
Went to Huppins, a local camera/electronics store. They matched the prices of OneCall, an online camera/electronics store. One speciality item was not available at the store and had to be ordered for delivery the next day. The group is VERY good at satisfying their customers.
Of course it helps that Huppins and OneCall are the same organization. I would consider them to be a model of business for the future.