The internet brought about tremendous opportunities for all business and marketers that could utilise it, there is no doubt.
With this expansive access to seemingly unlimited knowledge, the customer also gained a lot of power. Now, more than ever, a customer can compare prices from more businesses, anywhere in the world if they wish.
Any business with a functioning website has the potential to be found and compared with the largest businesses from their market. If they have a competitive price or differentiating factor such as ‘free shipping’ they have the potential to thrive in the online marketplace.
To continue from the psychological pricing of the last post, reducing a price from $30,000 to $29,990 now serves the additional purpose of appearing in search engines. A filter can reduce a customer’s search to their relevant products and a common method is a price range, this $10 change can allow the car to fall into the search filter of ‘$25,000-$29,999’ and remain in consideration.
This is also applicable for all other promotional methods as ‘summer clearance sales’ can be completely missed unless advertised well on social media platforms. The internet has also given coupons a new life and a great means of spreading the word of companies through campaigns such as Uber’s ‘refer a friend and you will both get $10 off your next trip’.
The internet has given the customer the power of knowledge. While this can be seen a bad thing for organisations, it is also an opportunity to give the customer the knowledge that you exist. Even if your physical existence is on the other side of the planet.
Hooley, G, Piercy, N, Nicoulaud, B & Rudd, J 2017, Marketing Strategy & Competitive Positioning, 6th Ed., Pearson, Harlow, UK.