Marketing channel article Essay Example | Topics and Well Written Essays - 500 words - 1

Marketing channel article - Essay Example The competition is reacting accordingly in order to ensure Amazon does not steal market share away from them. â€Å"Companies like Walmart, Best Buy and Toys â€Å"R† Us have already announced that they will not be undersold and will match any competitors’ prices in a printed flyer or website† (Loeb). The use of a matching pricing strategy can help retailers retain market share, but it does so at the expense of lowering profitability. The pricing strategies that are being used by major retailers are benefiting the customers who are going to be able to obtain bargain prices on many products. Best Buy plans to match competitors prices as well, but this firm believes that they have a competitive advantage over Amazon because they are able to physically show its customers the products they want to buy in their showrooms, while at the same time offering great prices though its website. For other retailers such as Toys R Us Christmas season is more important to them since most of their yearly sales are dependent on the arrival of Santa Claus on Christmas. A matching pricing strategy was an obvious move for them due to their dependency on Christmas sales. Amazon is leading the pack this Christmas season by offering daily sales on a high variety of items. The pricing strategy of Amazon intends to increase its market share as much as possible. It all starts on Black Friday for Amazon with deals on popular items such as sm artphones, diamond rings, and Wrangler jeans. After Black Friday the company intends on adding deals each day on different items in order to motivate buyers to make purchases. Last year Amazon lead the industry with 2,840 prices changes on Black Friday. Most of the prices changes were down, but some went up in order to offset the loss of profitability of reducing prices. This article showed that pricing is a critical factor that affects the buying behavior of consumers. Companies competing for market shares