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January 15, 2018

When it Comes to Price, Shoppers Like to be Fooled

Filed under: Internet,Retail — Edgar (aka MrConsumer) @ 6:17 am

Back in 2013, StubHub changed the way it priced tickets on its website moving to an all-in model that included all service charges and fees. Under this pricing method, the price you saw was the price you paid. How novel and how pro-consumer! No surprise charges or extra fees. But here’s the problem: when buyers used ticket comparison websites, StubHub’s prices seemed higher compared to the other sellers that posted artificially low prices without including all their added fees. As a result, StubHub’s sales went down dramatically.

So in 2015, StubHub reverted to its old way of pricing tickets — showing a lower price, and then tacking on hefty fees. Here, for example, is the price they advertised for seats on the “Green Monster” at Fenway Park for a particular game just after re-instituting the original, old system:

Green Monster 1

And when you clickthrough to order tickets, this is the surprise you get:

*MOUSE PRINT:

$600 tickets

$90 in fees!? Of course, to add insult to injury, Green Monster M2 seats can have a face value of just $110 to $165.

Within days of advertising low-ball prices again, StubHub was able to significantly increase their market share, according to the Wall Street Journal. [Story not free]

Now fast forward to today, and see what StubHub is doing now. After you choose your tickets (in this example two $125 tickets) and BEFORE they disclose what the fees are and what the real total price of your order is, the system forces you to enter your credit card number and name and address.

*MOUSE PRINT:

Stub Hub 2018

Maybe this is a technique to make you feel more committed to buying tickets even if you experience price shock when the final cost is eventually displayed to you.

We shouldn’t have to put up with practices like this, but we do. And judging by their increased sales when they advertised a price before fees were added, we tolerate that practice too.

We seemingly like being tricked into thinking we are paying a lower price or getting a great deal even when we are not. The poster child for this somewhat irrational behavior was J.C. Penney, when its new president, Ron Johnson, a few years ago did away with their phony 50% off sales and discounts. Sales plummeted. And then Ron Johnson lost his job. New management reverted back to advertising big discounts from inflated regular prices, and guess what happened? Sales starting jumping back.

What does this say about us as shoppers?




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January 8, 2018

Did Toys”R”Us Really Make a Mistake in its Posted Return Policy?

Filed under: Computers,Internet,Retail — Edgar (aka MrConsumer) @ 6:29 am

Every December, Consumer World releases its annual survey of retailers’ return policies and this time around it found that three stores had tightened their policies since the year before. One of them was Toys”R”Us.

In 2016, the toy chain had a two-tier return policy: 90 days for most items, but only 30 days for various electronic goods like cameras, video game hard, computer hardware, etc.

*MOUSE PRINT:

2016 TRU 30 day items

In November 2017 when Consumer World visited websites to find the current return policies, the Toys”R”Us policy had changed. “Computer hardware” which had been in the 30-day category the year before now was in a new separate section of its own indicating only a 15-day return period.

*MOUSE PRINT:

Toys R Us exceptions 2017

So Consumer World reported that Toys”R”Us had shortened the return period from 30 days to 15 days for computer hardware in its December 18, 2017 report. (Keep this date in mind.) On that same day or the day after, in planning for a TV segment on return policies to air just after Christmas, staff from the Today Show contacted retailers to confirm the changes that Consumer World found. Toys”R”Us reportedly told Today that it had not in fact changed its policy to 15 days for computer hardware, and that it was still 30 days.

Taken aback by the possible error, MrConsumer doubled-checked his verbatim copy of the Toys”R”Us policy captured in late November and sure enough it said “15 days” for computer hardware. Surprisingly, however, a visit to the ToysRUs.com website on December 19 — a day after the report was issued and just after the Today Show contacted Toys”R”Us — revealed that the policy now said “30 days” for computer hardware.

*MOUSE PRINT:

TRU policy dec 19thDecember 19, 2017

What MrConsumer said upon seeing that Toys”R”Us apparently had changed its website after hearing from the Today Show can’t be printed on a family website. He did some sleuthing however, and discovered through the miracle of Google cache, what the website said the very day before the company heard from the Today Show, December 18.

*MOUSE PRINT:

TRU Dec. 18December 18, 2017

Consumer World asked the company why the policy had been changed back to 30 days and whether it was the result of the Today Show contacting them. MrConsumer was told in a phone call that the 15-day policy was listed in error and that the company changed it as soon as it learned of the mistake.

A review of archived copies of their returns page reveals that that whole separate section singling out computer hardware for a special shorter return period was added and has existed online at least since August 2017. The return policy signs in a T-R-U store checked by Consumer World on December 20, however, said “30 days” for computer hardware.

So what do you think? Did Toys”R”Us make an innocent mistake in their posted return policy online or did they backtrack when they found out that the change was going to be part of a news story on national TV?




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January 1, 2018

Amazon’s Free $10 Offer Switcheroo

Filed under: Internet,Retail — Edgar (aka MrConsumer) @ 5:44 am

MrConsumer recently received an offer from Amazon via email inviting him to get the Amazon app and if he did so, he would get $10 just for signing into the app.

Amazon $10 off

Clicking through to their website reveals that Amazon left out a key detail of their free $10 offer.

*MOUSE PRINT:

Amazon $10 offer detail

Rather than giving $10 to the recipient of the email offer if one takes their wording literally, Amazon is requiring a minimum $20 purchase be made in a very narrow window of time and not from any marketplace seller.

While most people might make at least a $20 purchase anyway, the point is that the offer should have been made clear in the email. It is not merely “get $10” when signing into the app for the first time, it is “get $10 off a $20 purchase.”

Amazon offer redone




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