Saturday 28 February 2009

Perception of buying on the net – Everyday low prices?

Increasingly consumers feel that the Internet offers the cheapest price for any good. This perception may be based on the belief that selling via internet is cheaper as there are no overheads or brick and mortar costs. In Business banking, banks have started offering value added services on the net to corporate and to small and medium enterprises, but to their dismay have realized that consumers do not want to pay for these services. Customers feel anything available on the net should be free.
The fact that internet usage has been increasing rapidly is a great. However how does one manage this perception, can prices keep going down? Is it possible to charge a premium using Net as a medium. What I mean is the price on the net is higher than in a retail outlet. I am not talking about deals but a sustained pricing strategy. Anyone aware of such a situation ?