What聮s the difference between walking through a minefield and shopping for the holidays? Very little as far as CU-Boulder Business Professor Donald Lichtenstein is concerned. He urges consumers to take similar caution before entering the shopping arena.
" 'Higher price means higher quality' is a very, very untrue generalization," he says. "It will hold true for select product categories, but more often than not, when consumers go into the marketplace with the belief higher price means higher quality, they聮re going to lose."
Price has little or nothing to do with quality, and in the $800 to $1,000 price range, consumers often will pay extra because they believe they聮re getting a better-quality product. Consumers also need to beware of sales promotions such as coupons, rebates and buy-one-get-one-free offers. "I would tell consumers, 'keep your same level of price sensitivity. Keep your same level of scrutiny on your purchases. Don't lower your guard just because it's the holiday season,' " says Lichtenstein.
Holiday shoppers should be better informed, he says. Consumers can spend more efficiently by letting the market system work for them and shopping for the best-priced item. One tactic Lichtenstein uses is pitting retailers against each other by having them match or beat their competitor聮s prices. Competition, he said, will ensure that the customer gets the lowest prices and the best buys. "It would be worth their while to comparison shop," he says. "Be informed, that聮s all I聮m saying, be informed."
For more information call Donald Lichtenstein at (303) 492-8206 or in the CU-Boulder News Services Office Dirk Martin at (303) 492-3140 or Jon Libid at (303) 492-3112.