Case 7-2
Using Cell Phones for Price and Product Comparisons
Calling all shoppers: For quick and easy comparisons of products and prices, just grab that cell
phone and scan the bar code for information from anywhere at any time. Cell phones are also
being used to search out which local stores stock particular items, to learn about the latest sales,
and to receive notices about future retail promotions and discounts. In short, searching for
information by cell phone can help consumers better understand and evaluate their options,
improve their product and market knowledge, formulate or narrow down their consideration set,
and feel better about having made an informed decision.
Users can compare prices via cell phone in two ways. First, they can scan the UPC code or
brand and model number of a specific item, and then let one of several available apps the send
back the best prices for that item available through online retailers. A third way is to use a web-
enabled phone to search for price comparisons.
In addition, users can check product ratings and merchant ratings, save their search results to
check later, ask to be alerted when a product goes on sale, or press a button to buy right away.
Extras such as gift suggestions by category and price, listings of recent products searched by
other users, wish lists, and product recommendations add to the apps value as a pre-purchase
source of information.
Whether they are already at the mall or just thinking about going on a shopping trip,
consumers can find out whether a product is available in local stores by using a cell phone or the
Web to check nearbynow.co. Stores in 200 malls have opened their inventory to searches by
NearbyNow so that consumers can determine whether a product in a certain size or color is in
stock at a nearby mall, check the prices for items in different mall stores, and even reserve
products for purchase and pickup within a few days.
Rather than going to the mall and wandering from store to store to find something, leaving
empty-handed, or making a purchase only to find the same product selling for a lower price in a
different mall store, Near-by Now users can use their cell phones to do a little more research and
plan ahead. They will know exactly which store to visit, what is in stock, and what each store
charges for an item before they shop; they can also sign up to receive special offers from mall
merchants in their area. These services are especially helpful for consumers who enjoy shopping
in person rather than online or who are in such a hurry that they cannot wait for an online retailer
to ship the merchandise.
Consumers who call for a bargain will find many discounts and choices at cellfire.com or
groupon.com[http://bi.galegroup.com/essentials/company/1439438?u=tlearn_trl]. Hundreds of
U.S. stores and restaurants like Hollywood Video, Domino’s Pizza, Hardee‘s, Supercuts, and
T.G.I. Friday‘s offer discounts to Groupon and Cellfire users, as do major marketers like Procter
& Gamble, Kimberly-Clark, and General Mills. After registering, users simply browse the
discount offers, go to a participating store or restaurant, click on the coupon they want to redeem,
and show the phone screen to the salesperson or cashier. This way, price-conscious consumers
know they will get a good deal at the checkout counter just by having their cell phones handy—
no scissors needed.
i
Case Questions
1. Why might information overload be a concern for consumers who use a cell phone app to
research a particular purchase? What would you recommend that app developers do to avoid
creating this problem?
2. Knowing that consumers may skip a shopping trip if the item they want is not available at the
local mall, why would a mall retailer agree to open its inventory to NearbyNow users?
3. Who is more likely to use a service like Groupon or Cellfire, and why? Your answer should