Why did they do this?
According to an online press release, Circuit City is committing to this marketing campaign as a result of research done by SPSS of Chicago. The survey concluded, "that nearly half of consumers surveyed (47%) believe retailers post different prices for the same merchandise in their stores and on their Web sites. Moreover, more than half of shoppers (51%) said they would place more trust in a retailer who offered the same prices on the Web and in their stores."
The press release is published on the Circuit City website. (visit site)
Another reason could be that this is a last ditch effort to stay in business.
The Associated Press published an article on October 20, 2008, stating that Circuit City might close 20% of its stores as rumors of a Chapter 11 filing are afloat.
According to the AP, about 150 stores would close and thousands of jobs would be lost. (read article on Google News)
How long will Circuit City offer this 'One Price Promise'?
Circuit City didn't specifically state if this was a long term initiative but at the very least the One Price Promise will be reality through the 2008 holiday season.
I get the feeling that this is a permanent move. At least as long as they're in business. Circuit City cited a very strong reason - disdain for "a national retail environment that all too often favors 'special' deals that are hidden to many shoppers."
How does this impact the consumer buying a HDTV?
This is a good thing for the customer as long as free shipping is offered for online and phone orders. What I wonder is if this 'one price' is the better of what would've been the separate online or in-store price.
My Thoughts
Obviously, Circuit City needs to get their mojo back after taking a seat to Best Buy in the wallets of American consumers.
The SPSS survey mentioned that trust was an issue with consumers when stores had different prices online versus in-stores. I don't know what I think of that claim.
I bet if you asked the average consumer if they trusted any retail store the majority would say no. I'd even go a bit further and suggest that many consumers believe that HDTV salespeople make commissions or bonuses for sales even though the salespeople say they don't.
So, I think of this survey is just another compilation of statistics that could be twisted to meet any objective.
Now, the 'One Price Promise' is good but I wonder what else Circuit City will do this holiday season to stimulate money-making buzz. Many financial forecasts predict a bleak holiday shopping season so I guess only time will tell.