ch 18

When I shop for anything, the first thing I look at is the price. I was raised to be a determined haggler, otherwise known as cheap, penny pincher, frugal, and sometimes embarrassing. I learned these traits from my father, he was the world’s worst. But now that he’s at that age where he’s doing the midlife thing and feeling more comfortable or loose with his money, he’s changed to a degree. Now, instead of focusing on price first, he wants quality. “Quality above all else” has replaced “cheaper is better.” Since value has become so important to him, the consumer reports guide has become his best friend. http://www.consumerreports.org/cro/index.htm 

Consumer reports ranks merchandise based on almost anything you can think of but primarily quality. They are very reliable and even give advice on what the markets are doing and when the best time to purchase is.

My dad is not the only customer who shops this way. While selling electronics a few years ago, a gentleman came in to purchase a digital camera. I was supposed to be the expert and he was supposed to have a list of questions, turns out the gentleman knew far more than I did. Not only did he know every little detail about the two cameras he was comparing, but was quick to inform me about reviews and news he had read on both and competitors’ pricing. This is a good example of why value-based pricing can be so important for a retailer. With the use of the internet, the information is out there for consumers to find, and yes there is still a large percentage who want to speak to a knowledgeable sales person, but the need for them is becoming less and less. All that’s left for the retailer to do is stay below their competitors’ prices and the value shopping consumer will come to them.

As for product manufacturers, it is in the best interests of their company to put the information out for their customers to have easy access to. It would be a good idea to welcome reviews such as the ones done in consumer reports as well. If their product is the best, let it be known and proven by unbiased opinions.

Comments

[Lauren Vargas]

I like how Amazon and other online retailers give customers the ability to read reviews of products prior to purchase. I would find this helpful on the Best Buy site. Customers trust what others say versus the canned copy writing.