Its Called a Price War Because of Casualties: Ellwood

The video discusses the impact of early discounts on retailers, highlighting the risks of price wars and consumer addiction to discounts due to dopamine. It compares Walmart and Amazon's pricing strategies, noting Walmart's PR tactics. The video also examines consumer fatigue with flash sales and the importance of return policies. It reflects on last year's Christmas shopping issues, suggesting early discounts and in-store pickups as solutions. Finally, it predicts a shift to online shopping, questioning the relevance of Cyber Monday and Black Friday.

What is a major risk for retailers when they engage in early markdowns?

• Increased customer loyalty

• Higher profit margins

• Cannibalizing their own sales

• Improved brand reputation

Why is Walmart's price matching with Amazon considered more of a PR stunt?

• Walmart only matches prices during Black Friday

• Amazon does not allow price matching

• Amazon's prices fluctuate too much

• Walmart's prices are already lower than Amazon's

What is a significant challenge faced by flash sale models?

• High return rates

• Consumer fatigue

• Limited product variety

• Excessive advertising costs

What lesson was learned from last year's Christmas shopping experience?

• Rely on free overnight shipping for timely delivery

• Always shop in-store for better deals

• Ask for discounts in advance to avoid shipping delays

• Wait until the last minute for the best discounts

What trend is expected to continue in consumer shopping habits?

• Increased in-store shopping

• More shopping on Thanksgiving

• Greater migration to online shopping

• Decline in digital channel usage