' ghen *\"uwlewiw :. ._ . . . . Bricks-- with Kadlnfl-Mmtar Retailers Go Toe to Toe o )1le Shopping Apps (Back to App Store 10:30 AM Butha \"oasis Nearby BlackFriday Clog ) Expiring Today: Jack Links 7 Bee! Jerky Sate ' 512 33 Per: Shipping [Saw 35's,: ) Ft am Amazon GoPro Herod Silver Action 7 Camera Returb Sale K, E a $234.00 \"'96 S'ixppang Save \"'9. > ' ' '~ From eBay newegg $20 on $50 using MasterPIu ' f" 79': ) From Newmcom nortar retailers like Target, Best Buy, and BI'lCleJil'j-l . walnut". have an exasperating problem that is threaten- ing [hair my survival: shoppers who visit their stores, bu} the merchandise. Instead, these shoppers but nv'i i\" . _ _ an..V3.31;ramm'ngvtsmng a bnckandmortar store to map?\" the merchandise and then whipping out their smut-whines to find the item at a cheaper price and then buiing it online. The ciplosire growth of mobile shopping apps has ttisiomers a dizzying range of methods to pay is lot their purchases. For example, Google Shop- ' ping and BuyVia allow shoppers to compare prices and ShopSavvy and ShopAdvisor mat: tiline purchases; ons.com lets them send ii i m discount alerts; and Coup 1 coupon and promotion codes to apply to their seartl i, putrlt, in ", global sales on mobile devices grew to over 3315 on from $184 billion in 2014, and they are 8We. it) more than double by 2018. The consult- ing it xccenture found that 73% of customers with mobile devices prefer to shop with their phones rather than talk to a salesperson. But bricks-and-mortar retailers are fighting back. To Combat showrooming, Target stocks products that manufacturers have slightly modified at Target's request, making it hard for showroomers to find an online comparison. Like other retailers, Target has i been building its online presence, as well as sending i coupons and discount alerts to customers' phones. l, 'l Walmart offers free in-store delivery for online pur- ' Chases so customers can avoid shipping charges. And l Staples will give you a discount on a new printer if you bring in an old one. \\ However, traditional retailers know their survival y_ rests on pricing. So Best Buy, Walmart, and Target will \\ i now match the prices of rival retailers. Walmart has even created a mobile app that allows shoppers to scan a Walmart receipt and compare the prices paid to com- petitors' advertised deals and get the difference back on t. a Walmart gift card. It's clearly a race for survival. As on \"Only a couple of retailers can play the lowest-price game. This is going to accelerate the demise of retailers who do not have either competitive pricing or standout store experience.\" e analyst said, QUESTIONS FOR THOUGHT \\ 1. From the evidence in the case, what can you infer about whether or not the retail market for electronics \\ satisfied the conditions for perfect competition before \\ the advent of comparison price shopping via mobile , app? What was the most important impediment to , competition? l 2. What effect is the introduction of shopping apps having ' on competition in the retail market for electronics? On '. the profitability of brickand-mortar retailers like Best Buy? What, on average, will be the effect on the consumer surplus of purchasers of these items? 3. Why are some retailers responding by having manufacturers make slightly modified or exclusive versions of products for them? Is this trend likely to increase or diminish
