This blog provides insights of an emerging consumer behavior in light of increasing use of smartphones. More and more consumers are reportedly to practise “showroom”behaviour, which means to compare prices, reviews, and product details on their mobiles and then, make purchases online while they are in a physical store.

This emerging behavior can become strength, an opportunity or a threat to businesses.

“Showroom” behavior acts as strength to businesses. A retailer’s website or app will be impact the impression that customers have on the retailer. Having an interactive, easy-to-access, user-friendly and integrative website or app that is able to provide the precise answer to what customers seek for, will increase the chance that the customer would choose to close the purchase with the particular retailer.

“Showroom” behavior can also act as an opportunity to businesses. Businesses can effectively inform customers of their deals and discounts that they have at low costs. A retailer will be able to “steal” customers that engage in “showrooming” from their competitors if their offerings are better than what is offered by their competitors. This means reducing customers’ loyalty towards the business’s competitors.

However, this can become a threat for the business itself as the same phenomenon would happen if its competitors are able to provide better offerings to customers. Also, if the retailer is unable to maintain consistent positive reviews from customers, this is bound to chase away future potential customers.

All in all, “showrooming” behavior is another customer behavior that presses businesses to maintain good reputation and high quality. By now, businesses should have acknowledged that customers are increasingly engaging technology in their external search for information. Technology can be very contributory or detrimental to businesses. Therefore, businesses should be careful in their interactions with customers and offerings as “showrooming” behavior is just another example of increasing consumer power.

Reference:

http://econsultancy.com/ca/blog/63393-why-are-people-showrooming-and-how-should-retailers-respond