Promotions play a major role in retailers’ pricing strategies
Retailers are using promotions as a way to minimize negative customer reaction to pricing differences between offline and online channels, according to a new report from Retail Systems Research. While customers might balk at seeing an item priced higher in the brick-and-mortar store than in the online store, they’re more likely to accept price differences marketed as promotions, the study says. Price sensitivity is becoming an increasingly big concern for retailers, according to RSR’s 2009 “Going Local: Emerging Best Practices in Localized Pricing and Promotions” benchmarking study. Of the 85 retailers responding to the study, 55% said increased price sensitivity was the second largest business challenge, second only to pressure to improve the margin and profit (cited by 73%). In contrast, in the previous year’s pricing benchmark survey, only 39% of respondents rated consumer price sensitivity as a top-three challenge. In addition, 15% of retailers also said that increased price transparency and the impact of comparative price shopping posed a major business challenge, and 32% cited increased price cutting from competitors.
Fonte: Internet Retailer