Low Price & Promotions Win Consumers
Want to know how to attract buyers to your online or local store? Just lower the price and promote the discount heavily. The results of a study conducted by ForeSee, a research company, has revealed that price dominated consumers’ online buying decisions and satisfaction level in 2009. The choice of products and the e-commerce store features were other factors that consumer was sensitive to. It’s no surprise that Amazon topped the chart among most favored online shopping destinations. What started as an online book store has turned into a formidable e-commerce force. The company left Netflix behind in consumer satisfaction survey. The choice of merchandize on Amazon is second to none. The user experience Amazon.com provides is best of the breed. Just in time discounts and online promotions strengthened Amazon’s position over its rivals. Among the retailers Macy’s won the game. The retailer reported stronger holiday sales over the last year. It continues to promote its sales events heavily on TV and internet media. Other players who faired well under consumer’s lens include Gap and Overstock. The economic climate may have a lot to do with it. But there is no doubt that price is the biggest factor for consumers today. They are looking for best of deals to save on their shopping – whether it’s online on local. Retailers and Etailers who are planning and executing their pricing strategies smartly are succeeding in winning the consumer confidence. Consumers who find a great deal at a store are likely to return to buy more and to share their experience with their family and friends to drive more sales to that store.
Effective promotion is a key along with the low price. And, this is a hindrance for small to medium sized store owners. They lack the budget and sophistication for a serious ad blitz. The big guns are better equipped to position themselves according to the consumer sentiment. For small to medium sized store owners internet is the most economical medium for promotion. They can utilize social shopping, price comparison websites, and online promotion services to reach out to consumers. 2010 is expected to be no different from 2009. The product price will continue to play a key role in encouraging consumers to loosen their purses.
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 Agree, but for any e-commerce or retailer(local), it is more important to have the competitive prices to attract the buyers. It is also equally important to focus on the quality as people today theu want both ROI with supreme quality. For promotions, both (online and local) can use each other's media for cross promotions. They are no more threats for each other but are now competitors and should help each other to encourage buyers for shopping. By: Arti729 days ago |
Lowering the price alone, however, does not guarantee increased sales. 
