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One advantage of shopping online is being able to quickly seek out deals for items or services provided by many different vendors (though some local search engines do exist to help consumers locate products for sale in nearby stores). Search engines, online price comparison services and discovery shopping engines can be used to look up sellers of a particular product or service. Shipping costs (if applicable) reduce the price advantage of online merchandise, though depending on the jurisdiction, a lack of sales tax may compensate for this. Shipping a small number of items, especially from another country, is much more expensive than making the larger shipments bricks-and-mortar retailers order. Some retailers (especially those selling small, high-value items like electronics) offer free shipping on sufficiently large orders. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users’ shopping experience.
Jump up ^ Peterson, R. A.; Balasubramanian, S.; Bronnenberg, B. J. (1997). “Exploring the implications of the Internet for consumer marketing”. Journal of the Academy of Marketing Science. 25: 329–346. doi:10.1177/0092070397254005.
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The idea that there was a legitimate “list price,” and that consumers would occasionally be offered a discount on this price—these were the terms of the truce. And the truce remained largely intact up to the turn of the present century. The reigning retail superpower, Walmart, enforced “everyday low prices” that did not shift around.
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It may come as a surprise that, in buying a seasonal pie ingredient, you might be participating in a carefully designed social-science experiment. But this is what online comparison shopping hath wrought. Simply put: Our ability to know the price of anything, anytime, anywhere, has given us, the consumers, so much power that retailers—in a desperate effort to regain the upper hand, or at least avoid extinction—are now staring back through the screen. They are comparison shopping us.
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Will you pay more for those shoes before 7 p.m.? Would the price tag be different if you lived in the suburbs? Standard prices and simple discounts are giving way to far more exotic strategies, designed to extract every last dollar from the consumer.
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The New Jersey social worker, an enthusiastic label shopper who frequents sample sales and department store clearance events, was sifting through clothing racks at Neiman Marcus’s outlet Last Call a few months ago when she spotted a DVF piece. Weitsz, who’s no stranger to the brand, felt that something was amiss.
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Companies like General Motors found an up-front way of recovering some of the lost profit. In the 1920s, GM aligned its various car brands into a finely graduated price hierarchy: “Chevrolet for the hoi polloi,” Fortune magazine put it, “Pontiac … for the poor but proud, Oldsmobile for the comfortable but discreet, Buick for the striving, Cadillac for the rich.” The policy—“a car for every purse and purpose,” GM called it—was a means of customer sorting, but the customers did the sorting themselves. It kept the truce.
MILAN—The same day that left-wing groups and parties held an anti-fascist rally in Rome, protesting the apparent rise of the hard-right in Italy, the piazza in front of the Milan cathedral was filled with energized supporters of Matteo Salvini, the leader of Italy’s League party. The party is best known for its xenophobia and its flirtation with the idea of exiting the euro—and Salvini happens to be campaigning tirelessly to become the leader of the Italian right in Italy’s national elections on Sunday.
Jump up ^ Pappas, N (March 2016). “Marketing Strategies perceived risks, and consumer trust in online behaviour”. Journal of Retailing and Consumer Services. 29: 92–103. doi:10.1016/j.jretconser.2015.11.007.
For those shopping at Neiman Marcus outlets, things get a little more confusing. Neiman has two kinds of outlets: Last Call Clearance Centers carry overstock from the full-priced stores, while Last Call Studio stores sell items specifically made for the outlets. Yes, made. Ginger Reeder, Neiman Marcus’s vice president of corporate communications, says the company works with designers like Equipment, Theory, Stuart Weitzman, Tahari, Furla, Kate Spade New York, and Vince to design and produce merchandise for their outlets. While she wouldn’t confirm whether or not this inventory is of lesser quality, she did note the items are meant for an “aspirational shopper.”
This store is HUGE and offers a wide variety of goods. They seem a bit high-priced to me, but there’s tons to choose from and they have daily 1/2 price sales by tag color. It’s very well organized and items are clearly marked.
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“As a general matter,” she went on, “I find it so difficult to determine the actual price of the product that when I’m shopping for my kids, my new technique is to make all my decisions at the cashier. I pick up lots of clothes. I completely ignore all pricing until I get to the register. And then if something is too much, I say, ‘I don’t want it.’ ”
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