Circuit City aims to differentiate itself by a seamless multi-channel retailing approach, a single installation service brand (firedog), focusing solely on the consumer market, and a continued concentration on HDTV, Cimino said.
But no matter how much a retailer differentiates itself, many consumers still buy based on the lowest price. A Retail Forward’s ShopperScape survey found that about half the people would only consider buying HDTV from the retailer that offers the lowest price.
“Nearly half also trusted the retailer to install it properly in their home,” McCoy said. “Those are kind of opposing forces, because the installation services add to the cost. I’m just not sure enough of them (consumers) are familiar with firedog to allow it to do what is sometimes a fairly invasive procedure in the home.”