Holiday shopping season has arrived, and tough financial times mean that more people will probably be shopping around for the best price. But a study co-authored by North Carolina State University's Dr. Jonathan D. Bohlmann shows that shoppers who compare prices at multiple online retailers will not only find the best value, but will also likely contribute to driving down prices for that product at other retailers.
Bohlmann, an associate professor of marketing at NC State, explains that there are basically two types of shoppers: "switchers" and "loyals." Switchers compare prices from multiple online retailers, while loyals are committed to a particular store and don't bother with comparison-shopping. Bohlmann explains that the higher the number of switchers relative to the number of loyals – or the so-called switcher/loyal ratio – the higher the pressure a retailer faces to discount products in order to remain competitive.
(Had to throw that in there, this past Saturday we completed a full sweep of the state in defeating ECU, Duke, Wake Forest, and finally... the most hated of all - Carolina - this football season!)
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