“Peapod” – while the name may sound innocent, the company is helping to destroy a lucrative component of retail sales: the impulse buy.
Popular online shopping services such as Amazon and Peapod increase the “intentionality” of shopping behavior and reduce the temptation of impulse buying. The dynamic is a contemporary example of one of Porter’s Five Forces, the Bargaining Power of Buyers.
But some companies that have lost “instant consumable” sales are devising new ways to win them back. Hersheys, for example, may place vending machines near gas pumps or at curbside grocery pickup stations, among other ideas.
Is there an evolution in your industry that is extending your customers’ Buyer Power in ways you’re not prepared for?
PriSim Business War Games Inc. runs and designs customized business simulations that teach decision-makers about business, strategy, finance, and leadership.