Have you ever wondered why people still shop at online stores where items cost more than at other stores? Why don’t those stores just price match or under cut their competitors?
Well, for one thing, bigger stores might have economies of scale but they might have higher overheads too. If price matching and undercutting is going to end up eating into profits, staying afloat might be a challenge.
So, stores like that bank on other methods to attract customers. They know they won’t attract everyone, but as long as the volume they attract can make them a profit, that’s all they need.
