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Price matching serves two purposes. One is it's an effective market segmentation tool (http://en.wikipedia.org/wiki/Market_segment http://en.wikipedia.org/wiki/
by shalmanese 17y ago
Price matching serves two purposes. One is it's an effective market segmentation tool (http://en.wikipedia.org/wiki/Market_segment http://en.wikipedia.org/wiki/Market_segment) as it allows people to trade effort for discounts.
The second is that it does not dissuade price differences but does dissuade price wars. As long as prices remain stable, differences are not much of a worry. It's when they start reacting to each other that retailers stand to lose a lot of money.
- lliiffee 17y ago> it allows people to trade effort for discounts. It doesn't really do that. Instead of going through the hassle (and it is a hassle) of price matching at store A, I can just buy the item at store B at the advertised price. The store offering price matching knows I will do that. They don't care because the guarantee sounds good to the consumer too busy to comparison shop. Unlike, say, coupons, price matching guarantees are not meant to be taken advantage of.