As retailers become tangled up in price confusion in what a Forbes blogger calls a "race to the bottom," the consumer now has quite a few pricing styles to choose from when fishing for the best value. But as the blogger explains, retailers should be mindful of what's working and what's not.
According to the blog, the pricing styles are as follows:
"Fixed Price" on unique products with long lifecycles (e.g. Uniqlo)
Percentage off "retail price" plus additional discounts, promotions and markdowns (e.g. Kohl’s).
"Everyday Low Price" (e.g. JC Penney)
Set entry price with quick markdowns when inventory doesn't move. This model is often used by fast fashion retailers with short product lifecycles (e.g. Wet Seal)
"High/Low" pricing, where products are in a near constant state of change… up, down, up, down.
And with the addition of mobile technology and e-commerce, the blogger said, low-pricing faces a new level of complexity, even for the consumer.
It is no wonder the consumer is confused on what is and what is not a good value anymore.
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