Price matching, in the context of online retail, refers to a practice where a seller agrees to match the price of an identical item offered by a competitor. This strategy aims to attract and retain customers by assuring them they are receiving the best possible deal. An example includes a retailer adjusting its price to equal that of a lower price found on a competitor’s website for the same product.
The implementation of such policies is significant for maintaining competitiveness in a dynamic marketplace. It can benefit consumers by providing them with confidence in their purchase decisions, knowing they have secured a favorable price without extensive comparison shopping. Historically, this tactic has been used to gain market share and build customer loyalty, particularly in sectors where price is a primary driver of consumer choice.
