An online search engine that reveals low product prices

Citation

(2009), "An online search engine that reveals low product prices", Journal of Consumer Marketing, Vol. 26 No. 6. https://doi.org/10.1108/jcm.2009.07726fag.002

An online search engine that reveals low product prices

Article Type: Internet currency From: Journal of Consumer Marketing, Volume 26, Issue 6

Edited by Dennis A. Pitta, University of Baltimore

The internet has revolutionized a consumer’s ability to find hard to get items. Using search engines such as Google or Dogpile, users can search the world wide web for information on products and services and even find items to buy. While the engines are very helpful in identifying choices, they do not offer easy comparison of prices, an important component of the buying decision. Some computer users have learned the value of web sites like CNet.com. CNet provides in depth editor evaluations of computer software and hardware as well as inputs from experienced users who can add their own insight. A visit to the site can enlighten users about the pros and cons of particular software and hardware versions as well as provide specific examples or applications that would make the difference between a perfect and a less than perfect choice. For users seeking to buy reviewed products, the web site provides a price comparison function that compares alternative vendors in terms of price, shipping and handling costs and reliability rating. For example, a recent review of Adobe’s massive Creative Suite 4 Master Collection evaluated each of its modules in depth and provided a three part overall summary described as the Good, the Bad and the Bottom line. The bottom line statement was that the complete collection of numerous programs was “priced for serious professionals, [but is] a relative bargain compared with buying each ingredient piecemeal.” The price depended on vendor and the site provided a price range of $1,639.88-2,499.99. In addition, it listed seven online stores that sold the product. Each listing noted the store name with a linked profile and a Buy Now link. In addition, it provided a customer rating (five stars was the highest), a notation about inventory at the retailer, a ZIP code facility used to calculate price, tax, shipping and total price and finally a link to a price with a “Shop now” button. Presumably, CNet.com provides all the information someone might need to make a purchase decision and all the links to complete the transaction.

CNet.com offers products outside the computer arena. Users seeking product and purchase information for products ranging from appliances, camcorders, cell phones and car electronics, digital cameras, GPS devices, home audio and video can find helpful reviews, consumer evaluations and retail source information. For many of us, CNet.com offers all that we need to make intelligent and cost effective choices. In many ways, CNet.com is the first to market product in the category. It has exploited the characteristics of the Internet and established the viability of the product concept.

One might question the need for another web site to provide similar information. However, expanding the range of products or the quality and ease of use of information might allow a newcomer to exploit some differential advantages. Recently, we became aware of a new entrant in the product category, Sortprice.com.

Sortprice.com[www.Sortprice.com]

Sortprice.com’s public relations communications boast that it has “become one of the most popular shopping search engines on the internet and an emerging leader in the e-commerce industry”. Its brand name is descriptive and its web site address is short and easy to remember.

Its mission is simple; it aims to help consumers save money by “offering them the safest and easiest online shopping experience available”. To increase consumer choices, the site courts retailers. It offers them the benefit of a cost-effective way to expand online sales. It also offers the most customer-oriented retailers a competitive advantage in demonstrating their policies and publishing feedback about their performance. Consumers will benefit from both elements.

The company, consumer skepticism, and honesty

Today’s savvy consumers know the code words for promotional activities. One typical technique is the “courtesy call”. The purpose of the communication is selling, not extending a courtesy. Consumers are also wary of “surveys” for the purpose of collecting data for research, suspecting that the questions are really to uncover wants that can be exploited. It is fair to say that in the atmosphere of “phishing,” identity theft, and other perils, consumers have a healthy dose of skepticism about marketing.

Sortprice goes to extreme lengths to ally customer suspicion. Its promotion states clearly that “Sortprice.com is not owned by or related to any vendor or manufacturer.” The company is privately held and does not sell products. Thus, it seeks to reduce the taint of commercialism. Still there is an undeniable bond to its retailer customers. To insure transparency it publishes its Sortprice.com Merchant Program. The program contains multiple elements. The first is a promise of high sales conversions. Sortprice states that it delivers qualified buyers rather than browsers. It also promises that it avoids cost per click in its product listings. That policy removes the incentive to use click fraud to boost the cost of online advertising to the retailer.

In addition, Sortprice.com harvests product and pricing information from all of its listed merchants at least once a day. That assures both consumers and retailers of accurate product/pricing information with little likelihood of manipulation by unscrupulous retailers.

If there is an inadvertent price or product error, users and retailers are asked to notify the site immediately. Sortprice.com polices accuracy and will punish retailers who are clouded by any level of fraud. The policy is to remove them from the web site database.

Target audience

Its designers targeted a broad range of users ranging from novices to experienced online shoppers. The choice of target audience demands careful design and implementation to avoid swamping the inexperienced or boring the experts. The company promotes its “innovative features and advanced search technology” as increasing the web site’s ease of use and value to consumers. In addition, it has expanded the range of product categories beyond that offered by its competitors. The combination of scope and ease of use makes it possible to browse a useful selection of items and compare prices on each one. In principle, the site could enjoy a competitive advantage.

Product categories included

The current Sortprice.com database contains 17 separate product categories. They include: Apparel, Auto and vehicles, Baby and kids, Beauty and health, Computers, Electronics, gifts and flowers, Home and garden, Jewelry and watches, Movies and books, Music, Office, Pets, Sports and travel, Toys and hobbies, and Video games. Each category contains numerous product forms. For example, the Jewelry and watches section includes: Diamond Jewelry, Women’s jewelry, Watches, Rings, Bracelets, Necklaces, Men’s jewelry, and more. The listing is extensive. We investigated several of the categories and found reasonable prices.

We also decided to search the Watches category thoroughly. The initial screen listed numerous brands in alphabetical order and showed a selection of some of the more expensive brands like Breitling, including a $7,300 item. Our search for the Swiss Army brand, something more in our price range, yielded 890 results. The web site showed not only the number of hits but the time (0.137792 seconds) the search took. The results included both official brands of watches, Wenger and Victoronox. The selection was impressive and each result contained a picture and a link to a particular vendor.

This should be emphasized. Instead of a list of ten or 12 vendors which can be sorted according to price, the results listed a single item from a single vendor. That makes consumer choice easier but raises a question. While the selection was remarkable, where the prices listed for the items really the lowest? Or, are the results the lowest prices from the retailers who sign up for Sortprice.com? We surveyed the results to investigate. Our focal product was the “Victorinox Swiss Army 24532 Cavalry Mens Watch” priced at $250 (from KenmarWatches.com) on Sortprice.com. Searching Google.com using the exact wording of the item yielded a list of identically priced alternatives. That was impressive. Still skeptical, we used the search term “Victorinox Swiss Army 24532 Watch.” This time we got numerous responses but the top three included Buy.com at $180.00, NeweggMall.com at $181.00, and the Sortprice result, KenmarWatches.com at $250.00. We checked further to insure that the three choices actually represented the same watch. They did. In addition, the items listed on Buy.com and NeweggMall.com are listed as new.

Summary

Sortprice.com seems to represent the next step in online shopping guides. It portrays with transparency its mission and commitment to consumer value. It also goes to great lengths to avoid even the appearance of fraud. Each of those elements is important in an online search/shopping web site. In addition, it is fast and easy to use.

Our results illustrate one area that needs improvement. The site has to deliver the lowest prices, not just the lowest price from the set of retailer subscribers. When the site states, “Find the lowest prices shopping online with Sortprice.com price comparison,” it would seem that either the statement has to be qualified and limited to the merchants who have signed up, or the results have to deliver the lowest prices on the web. Speculating on the effect of a qualified statement on consumer reaction to the site, it would seem that such language would inhibit consumer adoption. It therefore would be critical to involve low price retailers like Buy.com. That may be very difficult since Buy.com’s business model seems to rely on very narrow margins. Then too, current subscribed retailers would feel pressure to reduce prices.

Despite this issue, the web site is a model for the future.

Reader requests

Please forward all requests to review innovative Internet sites to: Dr Dennis Pitta, University of Baltimore, 1420 North Charles Street, Baltimore, MD 21201-5779, USA. Alternatively, please send e-mail to: dpitta@ubalt.edu for prompt attention.