ETD: 892 Shoppers Naive About Online Prices; Experts Urge
Caution as Blogging Goes Corporate; Webcast: New Luxury Market
E-Tailer's Digest
etd_post at gapent.com
Thu Jun 2 11:37:57 GMT 2005
E-Tailer's Digest --- Everything for the Retailer
Issue #0892 June 2, 2005
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
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CONTENTS
[1] Greetings
[2] Shoppers Naive About Online Prices
[3] Experts Urge Caution as Blogging Goes Corporate
[4] Webcast: New Luxury Market
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[1] Greetings.
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Hi All:
I hope our US members are back on track after a lovely holiday weekend (and
short week this week). Interesting to note how U.S. workers don't take
their vacations as much as other nations. Not only do we get less vacation
time (12 days vs 21 Canada, 23 GB, 27 Germany; 39 France), but we don't use
all those days - 3 not taken vs 1 or less for the other countries (except
Canada who also leave 3 on the table). My latest mantra is "Life's Too
Short" - time to take more time off and enjoy life.
Today we have some interesting information about retailers who give
different prices to folks shopping online (surprise, surprise). A long
time ago I learned that the only way to get different prices is to ask. In
some countries, it is considered an insult if you don't haggle the
price. In the U.S., we tend to pay what we see. We haggle with
automobile purchases, why not with anything else? My wife recently bought
a hybrid car and traded in her one year old Jag. The price they offered
was ridiculous (they were $12,000 apart). She told them what she wanted
and to call when they were ready. An hour later they called with her price.
Blogging is going corporate, which should be interesting. I've only known
blogging to be ramblings of individuals who are on a mission, either for
or against something, or those who want to keep people up-to-date on their
dealings. So I'm not sure how it will work in the corporate world. Then
again, e-mail used to be text-only and a method of actually
communicating. Time will tell.
List member Pam Danziger will be featured in a Webcast on the Luxury
Market. If you are in, or thinking about entering that market you may
want to join this Webcast. I was a keynote speaker at one of her
conferences, and can tell you she has great stuff at these events.
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com
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[2] Shoppers Naive About Online Prices
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Most American consumers don't realize Internet merchants and even
traditional retailers sometimes charge different prices to different
customers for the same products, according to a new survey.
The study, "Open to Exploitation," found nearly two-thirds of adult
Internet users believed incorrectly it was illegal to charge different
people different prices, a practice retailers call "price customization."
More than two-thirds of people surveyed also said they believed online
travel sites are required by law to offer the lowest airline prices possible.
The study, expected to be released Wednesday by the Annenberg Public Policy
Center of the University of Pennsylvania, is the latest to cast doubt on
the notion of sophisticated consumers in the digital age.
It said 87 percent of people strongly objected to the practice of online
stores charging people different prices for the same products based on
information collected about their shopping habits.
The Internet empowers careful shoppers to conveniently compare prices and
features across thousands of stores. But it also enables businesses to
quietly collect detailed records about a customer's behavior and
preferences and set prices accordingly. Changing prices is generally lawful
unless doing so discriminates against a consumer's race or gender or
violates antitrust or price-fixing laws.
Stores aggressively try to retain loyal customers who generate the highest
sales while discouraging bargain-hunter shoppers who are less profitable
because they check many sites for the same product at the lowest price.
They are known within the industry as "bottom feeders" who don't show any
brand or merchant loyalty.
First-time buyers at a retailer could see higher prices than a firm's
repeat customers, and retailers may not offer discounts to consumers who
buy the same brands regularly without even looking at alternative products
on the same site.
The study urged government to require retailers to disclose exactly what
information is collected about customers and how the data is used, and it
urged schools to teach students better how to protect themselves as consumers.
Details at...
http://news.yahoo.com/s/ap/20050601/ap_on_hi_te/internet_shopping&printer=1
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[3] Experts Urge Caution as Blogging Goes Corporate
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Blogs are growing in number and audience size, but business-style Weblogs
have lagged. A survey released recently by eMarketer found that just 4
percent of "major" U.S. companies have publicly available blogs. The
potential exists with Weblogs to draw Web traffic to a company site and to
enhance a company's image by portraying executives or employees as
authorities on a topic.
It might be a fad. It may be a trend or something even more permanent.
Nonetheless, it's obvious that at least for now, blogging has arrived as a
force on the Internet, not only for political discourse and personal
ramblings but increasingly as a potentially powerful business tool.
Any doubt that blogs have business cache has been wiped out by recent
developments.
Microsoft is seeking bloggers to generate excitement about the upcoming
release of its Longhorn operating system. IBM has issued extensive of
guidelines for its employees who choose to blog and even old-economy
corporate giant General Motors has established a blog to which several of
its top executives contribute to frequently.
Add to that a growing number of CEOs and other executives who use Weblogs
to post their musings and it's clear that some believe the tool can fit
into a marketing and communications plan. However, experts also warn that
blogging is not for everyone, that the time commitment involved should be
considered, and that a slip of the fingertips could be costly.
Forrester Research analyst Charlene Li advises businesses to consider a
corporate blog if they already have a close, two-way relationship with
their users or customers and to start by considering guidelines for what
can be written and how to measure when a blog is successful. "Blogs have
gotten a lot of attention because they've proven effective at influencing
decision-makers, which is what marketing is all about," Li said.
Still, analysts say corporate use of blogging will need to walk a fine
line, since one of the medium's appeals for readers is the irreverence and
sense of anti-establishment zeal many portray. Microsoft's experiment, as
well as one planned by Vespa to build buzz about its scooters, will be
closely watched. If they succeed, expect a torrent of copycat projects to
follow.
Details at...
http://www.ecommercetimes.com/story/43321.html
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[4] Webcast: New Luxury Market
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Don't miss your chance to join us at The Conference Board's webcast on:
"The Eight Things Every Marketer Needs To Know About The New Luxury Market"
Tuesday, June 7, 2005 at 11 a.m (Eastern Time)
http://click.conference-board.org/c.asp?HRQeebNuD8YVlT6Z1OEPhAV/MKlqd03m3ntE9dK9SL8g
In marketing circles today the luxury market is all the rage. And no
wonder, affluent consumers have incomes two-and-one half times the national
average and they spend twice as much on all kinds of consumer goods and
services. But, as the luxury market has caught the imagination of
marketers and retailers at all price points, confusion has set in. New
luxury, as opposed to old luxury which was product centered, is no longer
restricted by income levels, personal wealth, or spending budgets. New
luxury is an experience everyone wants and believes they deserve. Today,
everyone is part of the luxury market.
The Conference Board's Briefing on The Eight Things Every Marketer Needs To
Know About The New Luxury Market webcast is designed to help explore
consumers' drives and motivations toward luxury by explaining the eight
things that every marketer needs to know about the new luxury market.
The webcast will be led by Pam Danziger, President, Unity Marketing and
author of Let Them Eat Cake: Marketing Luxury to the Masses - as well as
the Classes and Why People Buy Things They Don't Need. Ms. Danziger is a
nationally recognized expert on the luxury market and draws on 20 years of
research experience to offer a new direction for luxury marketers.
Learn about what you can do to reach the luxury market more effectively and
join us on Tuesday, June 7, 2005 at 11 a.m. (Eastern Time).
You are encouraged to submit questions in advance to
crc at conference-board.org by Tuesday, May 31, 2005.
You or members of your organization can attend from anywhere in the
world.all you need is a PC with a standard Internet connection and a
telephone. Note: registration is for 1 PC link only.
The registration fee is $350 for Conference Board members and $450 for
non-members. Register NOW by contacting customer service at 212-339-0345
or at our web site at:
http://click.conference-board.org/c.asp?aI8GGevcwy6uVBCyuKwhbQV/MKlqd03m3ntE9dK9SL8g
Lynn Franco
Director, Consumer Research Center
The Conference Board
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