The Overinformed Digital Consumer

Gone are the days when consumers depended on newspapers and analog media to learn about sales and limited-time offers happening in their area. Taking it further, yesterday’s consumers had to visit or call multiple stores to compare prices. Today’s retail landscape has done a complete 180°, and the power of information now lies on the consumer side. Nevertheless, does this mean that this added price transparency has benefitted consumers? Is pricing transparency putting enough pressure on businesses to engage in price wars that benefit consumers?

Information is power for both consumers and businesses.

There are many websites dedicated to providing pricing comparisons, historical comparisons, and discounts. For example, CamelCamelCamel tracks Amazon prices over time. I often use it during Black Friday offers to gauge whether or not the Black Friday price is more hype than any actual savings. Another popular service is the coupon website, RetailMeNot. Coupon codes abound on this website, and it’s not that complicated to go in and get even a small discount. These services are low-hanging fruit for consumers looking to get the best deal. Nevertheless, not all consumers go the extra mile to research and leverage these services.

On the flip side, businesses have a treasure trove of data; companies can learn more about consumer demands, browsing behaviors, and more. For example, while browsing on Amazon and researching on CamelCamelCamel, I often see daily price variations ranging from a few cents to a few dollars. This concept, called dynamic pricing, gives retailers the upper hand because they use their data to tweak pricing.

Convenience versus Price

It feels as if the COVID-19 pandemic fast-forwarded the evolution of retail by many years. The rise of curbside pick-up and delivery services has made consumers increase their consideration of convenience versus price. I am often okay paying a little more for the convenience of not having to get off my car, walk through aisles and make a line to pay.

As the lines between physical and e-commerce retailers continue to blur, it is up to consumers if they value more the convenience or are savvy enough to know which tools and sources of information will benefit them. Businesses now have more access to consumer information than they’ve ever had. Even if there are increased consumer concerns about privacy, I feel consumers will prefer a good deal. The Internet has changed the landscape on both ends, as the additional layers of information benefit businesses and consumers.