Something that's been plaguing brick-and-mortar retailers since the rise of the smart phone is mobile showrooming. Showrooming, the act of consumers going to a brick-and-mortar store before making the final product purchase online, is causing serious trouble for merchants. The rise of the smartphone has made showrooming even more popular amongst consumers. Now, through mobile showrooming, consumers don't need to wait to go home to check the price of an item because they can do so immediately thanks to either wifi or 3G.
Not too long ago I was at Walmart with one of my very good friends scoping out the DVD and Blu-ray section. When my friend settled on three or four DVDs he wanted to purchase he pulled out his phone loaded the RedLaser phone app. The app allowed him to scan the barcode of each item and compare prices with other vendors, while also searching for any available coupons. This app is not the only one of its kind, nor is my friend the only person doing this; people all over are using this technology to help them find the best deals on the market.
According to a recent study 67 percent of people participate in showrooming on their smart phone, and 13 percent will leave the store and shop elsewhere if they can find the product any cheaper. 23 percent will leave only if they can find a discount of up to 10 percent. 62 percent will leave for a discount of up to 20 percent.
1) J.C. Penny
5) Barnes & Noble
7) Best Buy
8 ) Toys R Us
10) Bed, Bath, and Beyond
Many companies, such as Best Buy and Target, have been trying to combat showrooming by offering to match the prices of other major retailers. Other companies have been focusing on building up their loyalty programs to try to maintain their customers. JC Penny tried to reinvent themselves as a way to combat showrooming, but that backfired massively.
Do you showroom? Would you be less likely to showroom if the store offered a price match option? What about if there were long-term benefits from participating in their loyalty program?
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