What can businesses learn from price comparison sites?

Database aggregation is an unsavory form of aggressive lean. The rise of isolated web apps makes incremental use of that approach less likely for small businesses. The problem that quasi legitimate aggregators face in the future is defense against being entrenched, coercive monopolies. What usually happens before formal sanctions is public unrest and dissatisfaction with cookie-cutter service antics.

 

Study Rates important thing and it is not binding and in particular competitive products prices

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Pricing strategy is an important part of your business. Pricing is classified into three cateogies:

 

1. Cost based

2. Competitor based

3. Value based

 

 What you mentioned in your question is Competitor based pricing. Visiting pricing sites help you compare price of your product with your competitors. However, Value based pricing is critical, i.e. knowing what your customers are willing to pay. 

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In regards to price comparison sites, let us begin with the basic:

• Who go to price comparison site
• Why do they go there
• What data/ information do they offer consumers
• How can businesses benefit from it.

Who go to price comparison site: Mostly Serious buyers and product followers

Why do they go there: It is a misunderstanding that consumers go to these sites to find the cheapest or best deal. So then...

What data/ information do they offer consumers: These sites also offers product spec/ feature comparisons and user or expert review ratings apart from prices. And many sites also offer suggestions for other product which an user may not have taken into consideration.

so what a serious buyer is doing is he is comparing products specs to check which product meets his requirements. and the consumers requirement is not merely price. Most of us has not purchased the cheapest phone or TV or car etc.. but what consumer do is shortlist products that match there total requirement and then make a purchase decision based on their budget and value requirement.

also note that expert or user review ratings are important because this is the qualitative part of the comparison. for eg. specs wise iphone would have never had the sales and fame it enjoys because spec wise it lags far behind other brands/products in the same price bracket. However in terms is performance it exceeds most of its competitors.

 

How can businesses benefit from much sites: Businesses can use these sites to first understand how they compete with others technically and then what is the price difference between identical products. Also analyze the expert or user reviews. These information will give insight into :

• what is your market position
• Gap Analysis of the product position objective and market position in reality
• Are you prices competitively - if you are overpriced then people may not see the value in your offer and if you are under-priced they may think the product is of poor quality so you must be competitively priced and need not be the cheapest in the segment.

If the price comparison sites are getting notable amount of web traffic from buyers, only than firms should assume that their customers are also price conscious and their buying decision also depends on evaluating alternatives on the basis of price...

 

In this regard they should make pricing strategies according to market research and of course on the type/ category of their product as well...

    

They can learn competitor's prices and customer respond rates to competitor's prices which will help them develop better pricing strategies.    

Agreed with the experts answer. 

Thank you for the invitation!

I agree with given answer.......................

It learns competiotion building. It helps it to know what others are doing when it comes to pricing.

Price comparison websites do a great job helping consumers find good deals, but they can also be useful to small business owners if used properly.