Shoppers perceive pricing that's higher than they were led to
expect as cheating. Whether or not it's deliberate, they usually
think it is and would rather shop at stores that didn't do it. At
the same time, while many affluent shoppers have made conscious
decisions to pay more for good food as a way to maintain their weight
and stay healthy, others are doing a slow burn as they see prices
creeping up in many categories--and a fast burn when they believe the
price increases are wearing camouflage.
Partly because of their long association with intense price
competition, supermarkets take the most blame for pricing that corrodes
customer relationships. Instead of building loyalty, frequent-shopper
cards corrode relationships whenever a shopper forgets to use them or
meets resistance to expecting card prices even without presenting their
card.
Shoppers who discover that they paid $3 to $4 dollars more than the
signed price for each of the half-gallons of ice cream they bought feel
cheated and are mighty unhappy with the store. If they go back to the
store with their sales slips and shopper cards, they won't have
trouble getting their overpayment reversed. But it takes time and money,
and they are angrier with the store than with themselves for forgetting.
This happens with too much frequency to shoppers who are busy,
preoccupied, having senior moments, or talking on cell phones while
checking out. (By the way, many libraries now refuse to check out
customers who are talking on cell phones. Supermarkets might consider
doing the same.)
An interesting new study of 6000 shoppers from a company called
Alix Partners (www.AlixPartners.com) found that 'honest"
prices are more important than lowest prices to today's shoppers.
"They resent needing to hunt for bargains, but even more, they
really resent being taken advantage of, being deceived, or being made to
work to receive real value. What they crave: consistency, honest prices,
and fair value--even if, in many cases, that means paying a little
more."
Many shoppers would rather shop at stores that don't have
loyalty cards. These stores include Costco, Wal-Mart, Target, Whole
Foods, and Trader Joe's. All of these stores have prices that
shoppers trust. And all of these stores are making lots of money.
Supermarkets also share the blame for size changes that deceptively
cover up price increases. The manufacturers may be doing the shrinking,
but retailers seem to support it and allow their customers to be
deceived.
* "I hate that healthy food costs so much more than unhealthy
food. By the way, I forgot to tell you about my complaint
Campbell's soups. It really irritates me that prices are raised so
dramatically for less sodium in their products when they should have had
this under control long ago. It appears they are forcing us to pay more
to eat more healthfully."
* "I hate it when companies 'fool' unsuspecting
customers who are suddenly getting less for their money. I try to avoid
buying those products and the stores that support this kind of
thing."
* "Decreasing the size is a very subtle way of increasing the
price and getting away with it. Why is a gallon of oil now 101
ounces?"
* "I think Jewel Food Store prices are really too high. I
can't stand to shop there anymore."
* "Price deception at supermarkets has been getting worse for
several years, since the ice cream makers cut half gallons to 1.75
quarts and the supermarkets supported the change by advertising the
pictures instead of stating the size. Stores like Whole Foods have
higher prices, but they don't cheat."
* "Wishbone's Salad Spritzers are an ingenious way of
charging a LOT for a tiny bit of salad dressing. It makes sense by
helping you use less fat and calories, but the price per ounce is
obscene. I asked a store manager about the price, and he told me I
wasn't supposed to think about it that way. Now we have thought
control too!"
COPYRIGHT 2007 Consumer Network,
Inc Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.