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    Showrooming at Best Buy

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    Anantha Bhairavi Mahendrakumaran
    Best Buy has struggled with the issue of "showrooming", where customers visit physical stores just to test products but purchase them cheaper online. This has reduced sales for Best Buy. In response, Best Buy has blocked showrooming apps, offered exclusive products, created its own shopping app, price matched competitors, and educated customers on the value of purchasing in-store. The document discusses whether Best Buy should keep its policy of price matching competitors.

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    Showrooming at Best Buy

    Uploaded by

    Anantha Bhairavi Mahendrakumaran
    622 views7 pages
    Best Buy has struggled with the issue of "showrooming", where customers visit physical stores just to test products but purchase them cheaper online. This has reduced sales for Best Buy. In response, Best Buy has blocked showrooming apps, offered exclusive products, created its own shopping app, price matched competitors, and educated customers on the value of purchasing in-store. The document discusses whether Best Buy should keep its policy of price matching competitors.

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    SHOWROOMING AT BEST BUY (1).pptx

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    Best Buy has struggled with the issue of "showrooming", where customers visit physical stores just to test products but purchase them cheaper online. This has reduced sales for Best Buy. In response, Best Buy has blocked showrooming apps, offered exclusive products, created its own shopping app, price matched competitors, and educated customers on the value of purchasing in-store. The document discusses whether Best Buy should keep its policy of price matching competitors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    622 views7 pages

    Showrooming at Best Buy

    Uploaded by

    Anantha Bhairavi Mahendrakumaran
    Best Buy has struggled with the issue of "showrooming", where customers visit physical stores just to test products but purchase them cheaper online. This has reduced sales for Best Buy. In response, Best Buy has blocked showrooming apps, offered exclusive products, created its own shopping app, price matched competitors, and educated customers on the value of purchasing in-store. The document discusses whether Best Buy should keep its policy of price matching competitors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7
    At a glance
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    The passage discusses how online retailers like Amazon made it easy for customers to compare prices online, leading them to visit physical stores just to try products without buying. This negatively impacted sales for traditional retailers. It also provides background on Best Buy and how it was affected.

    Online retailers provided transparency about pricing and deals, allowing customers to easily find lower prices online. This pulled customers away from traditional stores and increased unemployment in the retail sector. Amazon was particularly successful in drawing customers away.

    Best Buy tailored its barcodes to block showrooming apps, offered exclusive products, created its own shopping app, and partnered with third party apps. It also matched lower prices found elsewhere.

    SHOWROOMING

    AT BEST BUY
    The Issue – How E-commerce Is Affecting
    Retailers
     Online retailers designed the mobile apps to give shoppers an easy
    way to search online for the product at best deals. This way there
    are no customers for the retail shops.
     Even if the mob visit the retail shop, it is only for personally trying out
    the product they’ve checked online and not for buying them.
     Thus the retail shop traffic is more, but the sales was in a sobering
    situation.
     It became difficult for traditional retailers to compete in a world
    where shoppers could easily see competing prices, offers and also
    when they could have a free home delivery.
    About Best Buy

     Best Buy Co., Inc. is an American multinational consumer


    electronics retailer headquartered in Richfield, Minnesota. It was
    originally founded by Richard M. Schulze and James Wheeler in
    1966 as an audio specialty store called Sound of Music. In 1983, it
    was re-branded under its current name with an emphasis placed on
    consumer electronics.
    Affected & Effected
    AFFECTED EFFECTED

    Online retailers has created Amazon was one of the companies


    transparency between retail pricing. which was most successful in pulling
    Customer visited the stores visited the the customers away from the
    stores just to view and test products. traditional stores.

    The unemployment was increasing at By the end of 2011 more shoppers


    a higher rate as people saved more began their search on amazon rather
    and spent less in stores. than searching in google.

    The shareholders were incurring heavy After the success of its retail website,
    loss and their profits were going down. they launched apps for comparison,
    The target sales was getting flat with mobile app and a simpler app called
    no increase in revenue. flow.
    Best Buy’s Response

     The company tailored its in-store barcodes to block customers


    attempting to showroom using mobile apps.
     It offered products only available at Best Buy, such as exclusive
    editions of Blu-ray movies.
     The company then created its own shopping app.
     It also partnered with the third party apps in an attempt to win
    mobile savvy customers back to its own brand.
     The company took the extreme decision of always matching lower
    prices that shoppers found elsewhere.
    Should Best Buy Retain Its PPM
    Policy?
     Yes they should retain the PPM policy.
     It means you're constantly on the lookout for the best pricing
    strategy to appeal to your target audience. One
    such strategy is price matching. This is when one retailer agrees
    to match a lower price from a competitor, typically if the shopper
    presents evidence of the better price
     Because when other retail shops remove their discounts and deals
    after the festival season and Best Buy keeps the discount price, the
    people who are willing to buy in the retail shops would obviously
    prefer Best Buy.
    Strategies That Can Be Opted By
    Best Buy
     Educate your customers about why your products are worth
    buying.
     Create a membership program. Why not turn customers into
    members and give them benefits at the end of the year.
     Stock different merchandise. If a shopper can get exactly the same
    merchandise online at a lower price, it's easy to comparison shop.
    So look for items that are unique or special in some way.

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