The Wal-mart Effect

["Jack Campbell" <rjackcam@comcast.net>]

In a recent post, Steve Pilgrim suggested that with most consumers "low =
price trumps quality" and labeled that "the Wal-mart Effect".

=20

I agree and suggest that there are steps that lead many consumers to =
buying at Wal-mart.

1.     Since information from advertisers about product quality is =
unreliable and often misleading and

2.     reliable, understandable information about product quality from =
other sources is often difficult if not impossible to get,

3.     many buyers resort to buying the cheapest product at Wal-mart =
that seems like it will meet their needs.

4.     Then, if the purchase does not meet the buyer's needs (within 90 =
days), he/she simply returns it to Wal-mart and gets the next least =
expensive model that might meet their needs.

5.     These steps are repeated until a purchase is made (from Wal-mart) =
that meets the buyer's needs.  (However, if none of the Wal-mart =
purchases work out, then the buyer (presumably) will go to a Best Buy =
type store and throw him/herself on the mercy of a salesperson.)

=20

Note 1:  Of course in this model, the buyer doesn't gain any insight =
into the likely longevity of the purchase, but if the item is =
electronics, obsolescence will probably occur before the item fails.

=20

Note 2:  It is interesting to speculate on how this process might change =
if advertiser information (step 1) was reliable or if reliable, =
understandable, product-quality information was readily available to the =
average consumer.



Jack Campbell

Oak Ridge, TN