Topic > An Analysis of the Effects of Showrooming on Consumerism

IntroductionWith the rise in popularity of smartphones and online shopping, several retail stores have experienced declines in in-store sales (Bustillo 2012, Laird 2013, and Zimmerman 2012a,b ,C). Studies and statistics have shown a decline in the amount of purchases made per visit to electronics stores such as Target and Best Buy (Zimmerman 2012b). A decline in sales among bookstores was also noted, while book sales on popular online marketplaces such as Amazon.com saw an increase. These trends make brick and mortar locations nervous and strategizing. Earlier this year, Target and Best Buy permanently extended their price-matching promotions after testing their effectiveness during the holiday season, while maintaining their policy to match other brick-and-mortar retailers (Banham 2013). But is showrooming something to avoid or embrace? While some analysts predict the end of physical retail (Laird 2013), others believe that retailers must evolve (Banham 2013, Datko 2012, Laird 2013, Monteleone & Wolferseberger 2012, and Webb 2012). Many analysts are considering a change in strategy as an alternative to online price matching. What is Showrooming? Showrooming is a method whereby a customer uses their smartphone or other portable technology to compare in-store prices with other physical stores or online stores (Banham 2013, Datko 2012, Monteleone & Wolferseberger 2012, Webb 2012 and Zimmerman 2012a, c). The customer will then ask the store to match the price found via their device or they will leave the store and purchase the product online. Many consumers use this tool to view a product in a store near where they are located, then walk away with no intention of purchasing from... middle of paper ......eping-Buyers-In-StoreSolsman, J. ( 16/02/2013). Best Buy to renew policy corresponding to online prices. The Wall Street Journal. Retrieved from http://online.wsj.com/article/BT-CO-20130216-701026.htmlWebb, J. (2012). How retailers can turn showrooming into an advantage. Publishers WeeklyZimmerman, A. (01/23/2012). Showdown on "Showrooming". The Wall Street Journal. Retrieved from http://www.shoppersitenews.com/PDF/Issue58_Article_01_Target_Sends_Letter_to_Vendors_Asking_for_Help.pdfZimmerman, A. (10/12/2012). Best buy to match prices online. The Wall Street Journal. Retrieved from http://online.wsj.com/news/articles/SB10000872396390444657804578050864206903402Zimmerman, A., and Holmes, E. (10/16/2012). Aim to match prices online, following Best Buy. The Wall Street Journal. Retrieved from http://online.wsj.com/news/articles/SB10000872396390443624204578060990412812204