Glenn’s latest blog post at Twin Cities Business Magazine addresses the idea of irrational exuberance in communications, when hype creates a perception that is contrary to reality. He wrote:
Years ago during the dot com bubble and its subsequent burst, financial journalists coined the term irrational exuberance to describe the frenzy of buying almost any stock in the technology world on the promise that it would be the next big thing. We all know what happened as investors drove the market to ridiculous heights with what basically amounted to a Bon Jovi strategy: “Living on a Prayer.” Such is the case with mob mentality until reality eventually prevails and equilibrium is restored. Read the rest.
Glenn went on to discuss how that same dynamic created the perception that Amazon was eating big box retailers’ lunch with lower online prices, which a new Wells Fargo Securities and 360pi pricing study contradicts. Here are some additional statistics from the study regarding our client, Walmart. Among the findings:
- Walmart, described as the “standout surprise,” has online prices approximately 10% lower than does Amazon, Internet Retailer reports. [Tweet “Walmart’s online prices are approximately 10% lower than Amazon’s: http://creativepr.com/walmart-com-be…on-price-study/”]
- During the study period, June through August 2014, Walmart’s prices on electronics were 3.3% lower than Amazon’s.
- Walmart’s prices for clothes and shoes were 6% to 8% lower.
- Walmart’s prices in the health and cosmetics category were about 11% lower than Amazon.
- Walmart’s price advantage in this category continues to drop, from 2.9% lower about a year ago.
- Walmart’s prices for housewares were 5% to 10% lower than Amazon.
The Wells Fargo study examined prices for 100 products during 2014 sold by Amazon, Walmart, Target, Sears, Macy’s, Best Buy, The Home Depot, Kohl’s, Lowe’s and RadioShack within four categories: electronics, clothing/shoes, housewares and health/beauty.
Living On A Prayer
We couldn’t let a Bon Jovi reference go without actually delivering on it, now could we?
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