The Iowa Stater
February 2002
SHOPPERS AREN'T BUYING IT
Those "Dare to Compare" price promotions retailers use to woo consumer
loyalty may be backfiring. Preliminary findings in a study by associate
marketing professor Michael Barone and several colleagues around the country
show that retailers' price comparisons for some, but not all, products may
have the reverse effect. Discount and grocery stores are the most frequent
users of the strategy, which pits their prices on specific products against
their competitors' prices.According to the study, advertisements that show price superiority on specific products actually may signal to consumers that the retailer has higher prices for other products -- those it isn't promoting. This perception may compel them to shop elsewhere.
Barone said comparisons based only on price may not have the desired effect on consumers. Without stressing some other qualifying factor, such as larger selection or better-trained sales staff, such promotions may drive consumers to competitors.