In 2009, McKinsey reported that up to 40 percent of consumers changed their minds in-store because of something they “see, learn, or do at this point… packaging, placement, or interactions with salespeople.” Because the world had become so complex, consumers were holding off making their decisions until they got to the store and could hold the product or – better – see it in action.
That complexity is now being complimented by greater transparency. You can find out even more just by scanning a code. Or by simply asking Siri. As shoppers with mobile devices continue to realize they literally have the world at their fingertips, the world is going to change drastically. More and more, shoppers will know exactly what all of their options are.

The results are predictable: The drum will be banged for the importance of price. Take Mary Meeker’s recently released Internet Trends 2011 Report. According to the report, the #1 and #2 reasons for “in-store purchase abandonment among USA smartphone users” were “I found it online for a better price” and “I found it at another store for a better price.” The results appear to come from a comScore survey. But it appears that in asking about in-store purchase abandonment, they asked only about price – not value.
I won’t argue that pricing matters. It does. But there can only be one low-price leader. And its benefits are far fewer and farther between than just about any other position.
Value matters, too. Or, in the words of the presentation slide, Value Matters A LOT! And, for marketers, I’d argue that value matters more. Nielsen’s 2011 Global Online Survey found that consumers favor value over price.
In this changing, mobile-ized, transparent world, marketers still have two basic paths:
- Invest in lowering price. And then, likely, someday soon, lowering it again.
- Invest in increasing value. This can be done in any number of ways, including the product, perceived value, community of advocates or experience. It’s worth noting, price wars don’t have to be a negative. They can be fun for the consumer, but that’s as much about experience as pricing.
I think we’d see more brands investing in the latter if we also invested in a new survey – one that considers value alongside price.
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