Publications
Publications
- August 2014 (Revised December 2015)
- HBS Case Collection
Showrooming at Best Buy
By: Thales Teixeira and Elizabeth Anne Watkins
Abstract
Best Buy is a consumer electronics retailer with nearly 2,000 stores worldwide. In 2012, the rising popularity of price-matching apps for mobile phones made price differences between retailers transparent, online and offline. Shoppers' desire to test electronics first-hand before purchase drove them to use Best Buy stores as "showrooms" to see new products and then search for better deals on their smartphones. This case examines how brick-and-mortar stores battle showrooming through changes in product assortment, the development of apps, loyalty programs and changes in pricing policy. The case asks whether Best Buy can survive by permanently price-matching their online-only competitors, primarily Amazon, despite having higher costs.
Keywords
Competition; Price; Consumer Behavior; Applications and Software; Mobile and Wireless Technology; Retail Industry; Electronics Industry
Citation
Teixeira, Thales, and Elizabeth Anne Watkins. "Showrooming at Best Buy." Harvard Business School Case 515-019, August 2014. (Revised December 2015.)