I think an interesting case to look at was the Best Buy vs. Circuit City competition. After going head to head on prices for so long, Best Buy decided to raise

I think an interesting case to look at was the Best Buy vs. Circuit City competition. After going head to head on prices for so long, Best Buy decided to raise their prices and better train their staff and service. If people know what they want, they can find it on Amazon, or New Egg, or somewhere online for cheaper than Best Buy can offer, often because of the sales tax exemption in buying from out of state vendors. What Best Buy discovered is that people come into Best Buy when they don't know what they want. When they need to ask a few questions and get some recommendations. Then they figure, "I might as well buy it while I'm here" and pay a little premium for it.