Question

Should Best Buy keep its permanent price-matching policy or abandon it in favor of another approach?

Looking at the approaches of other brick-and-mortar retailers to combat showrooming, could Best Buy be better off by doing something differently?

Answer 1

Best Buy announced the permanent price-matching policy from March 3, 2013. Although it was introduced in the holiday season on an experimental basis that provides a guarantee that the company will gives the lowest price on offer for a good by an online or a brick-and-mortar retailer when a customer can produce the proof of it. The customers prefer to pick from online retailers as the prices are cheaper as the showroom incur significant costs to maintain the showroom. Because of the consumer show-rooming behaviour Best Buy has been losing out sales for years. Best Buy in the battle for retail shoppers, initiated a permanent price-matching policy that match the prices not only of its local competitors, however with some major online retailers also.

For the customers the show-rooming generates value because it would be beneficial for them to physically experience or test the products. Consumers can visiting a Best Buy store and create additional value by making a comparison to buying directly from online retailers, and thus gains value comes from two sources - one due to better product and secondly an additional customer service provided by Best Buy. People often prefer to make a comparison of different alternatives while shopping for a specific type of product. In my opinion Best Buy must continue with the permanent price-matching policy as it has the ability to connect with customers for establishing long-time relationships. The consumers face the risk of buying a mismatched product when it is directly purchased online. Moreover if a consumer purchases online there is also a delay between purchase and consumption.