Media Alert: November 16, 2012

Smith Experts Comment on Holiday Retail Trends

Marketing experts in the University of Maryland’s Robert H. Smith School of Business are available to comment on trends shaping the 2012 holiday shopping season.

The Smith School has an in-house facility for live or taped interviews via fiber-optic line for television or multimedia content.

Janet Wagner:  Insight for Savvy Shopping 
“Items offered at deep discounts on Black Friday are viewed by retailers as ‘loss leaders’ that build customer traffic. Customers who come to the store to buy loss leaders are likely to buy items at regular price on the same trip. In fact, prices of luxury gift items, such as jewelry and watches, may get higher as Christmas approaches. The same is true of ‘hot’ toys and fashion items. This aura of exclusivity or scarcity gives pricing power to retailers.

“For Cyber Monday shopping, keep in mind large online retailers, such as Amazon, and even large brick and mortar retailers, such as Best Buy, with online businesses, have software that allows them to adjust prices according to customer demand – not just by day of the week, but also by the hour.”

Wagner, associate professor of marketing and director of Smith’s Center for Excellence in Service, is an expert in retailing and customer service in brick and mortar stores and in online retailing. Contact her at 301-405-2126 or jwagner@rhsmith.umd.edu.
 
P.K. Kannan and Jie Zhang:  Consumer Confidence High
Kannan: “Consumer confidence has been rising for months, so retailers are working hard to lure shoppers eager to spend. These shoppers in 2012 are expected to spend $586 billion, including $70 billion (up by 15 percent from 2011) in online sales.”

Zhang: “The economy is heading toward a better direction, and consumer confidence is at its highest in a year, making shoppers more willing to open up their wallets. Retailers are resorting to more aggressive promotions by starting sales earlier and using a variety of creative promotion tactics, such as targeting shoppers by social media websites, smart phones and tablets. In addition to conventional hot selling categories during a holiday season such as consumer electronics, high-tech gadgets, toys and jewelry, we may see significant sales increases in travel, vacation packages and entertainment products.”

Zhang, associate professor of marketing and the Harvey Sanders Fellow of Retail Management, can further comment related to retail management, Internet shopping, online promotion customization and shopping behavior. Contact her at 301-405-7899 or jiejie@rhsmith.umd.edu.

Kannan, the Ralph J. Tyser Professor of Marketing Science and chair of the Department of Marketing, can further discuss topics related to new product-service development, design and pricing digital products and product lines, marketing and product development on the Internet, e-service, and customer relationship management and customer loyalty. Contact him at 301-405-2188 or pkkannan@rhsmith.umd.edu.

Bill Rand:  Smartphones, Tablets and ‘Social Shopping’ Reshaping E-Commerce
“E-commerce and online sales have revolutionized holiday shopping and Black Friday specifically. As online shopping became popular, retailers introduced Cyber Monday to accommodate shopping from the workplace desktop. But now, the growth of mobile and tablet-based commerce may be leading more people to shop online through Thanksgiving weekend instead of waiting until Monday.

“Moreover, the growth of social media and social shopping has accelerated this process. While the more traditional forums and bulletin boards have enabled deal hunters to share inside information on the best online and offline holiday deals, the growth of social media allows for consumers to immediately share tips on deals with any and all of their friends. This stands to accelerate online purchasing and retailers realize this. They have launched deals and ads revolving around holiday sales earlier than ever and are making this information available through traditional advertising channels, as well as social media channels.”

Rand, assistant professor of marketing, directs Smith’s Center for Complexity in Business. Contact him at 301-405-7229 or wrand@rhsmith.umd.edu.

About the Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and part-time MBA, executive MBA, MS in business, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.