Thursday, February 22, 2007

Differentiating on product features not price

Retailers are getting past the issue of customers comparing prices for exact items at different outlets, by creating an exclusive item and selling different versions so a comparison is not always cohesive and accurate. So, consumers will not find the exact same items at Home Depot or Lowe's because they have been manufactured differently for them.
“By doing that, manufacturers, in concert with retailers, start to make it harder to do price comparisons online,” says Wingo, who adds that he expects to see more of the same in categories such as consumer electronics.
Another way retailers get around this issue is by selling private label merchandise that no other retailer will have and therefore will not be compared on price alone.

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