Sunday, August 19, 2007

Butt Cam Differentiates Retail Service

A defining characteristic of Monopolistic Competition is product differentiation. However, since 80% of the US economy is service, we really should call it service differentiation.

Retailers work hard at differentiating their service. They do this to keep a step ahead of the competition and lure additional customers into their stores. One clothing retailer in Scottsdale has taken a unique approach.

Stationed outside the dressing rooms at Hub Clothing at Scottsdale Fashion Square, a video camera points toward the customer's posterior and displays the rear view on a flat-screen TV.

At Hub, where most jeans fall between $135 and $250 but go as high as $900, the Butt Cam underscores that the test of a great pair is how they look from behind.

Apparently the store owner thinks this is great innovation in retailing.

Hub co-owner Tom Simon created the Butt Cam after watching customers twist in front of mirrors. He applied for a patent after research showed no others like it.

This whole topic is just begging for puns, however, as an instructor, I'll leave those as an "exercise for the reader."

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