You’ve probably heard of price protection guarantees before, but what is difference between price adjustments and price matching? And why do retail stores in the US have these policies in the first place?
According to Barbara Kahn (a professor at the Wharton School of Business), knowing that a store has price protection policy “lets people feel good about the price they’re paying and not go and search for a lower price, so they feel more comfortable with the transaction”.
In short, walking into Best Buy or going on Walmart.com and seeing their best price guarantee makes you feel more confident in the brand – even if you don’t actually know how the policy works, and have no intention of finding out/following through. Indeed, research done by the NPD Group suggests that only 5% of customers ever feel comfortable asking for a price match.
While similar, price matches should not be confused with price adjustments. The latter are what used to be offered by Amazon until this policy was discontinued last month. With adjustments, the retailer promises to give you the difference in the cost of a purchase if their own price on an item falls within a specified time-frame.
Meanwhile, price matching policies are ones where the retailer agrees to refund you the difference in cost if you can find the same item for cheaper at another store.
The Good News
Different stores will have different policies, rules, and timeframes. The good news is, with Paribus, you don’t have to worry about keeping track of these details yourself. Paribus’ algorithms support 20 stores (and we are constantly adding more!), so all you have to do is take the 30 seconds to sign up and then get on with your day, knowing you are always getting the lowest possible price.