Updated: 2/12/2007; 8:37:16 AM.

Ken Novak's Weblog
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daily link  Tuesday, January 02, 2007


Wal-Mart promotes CFLs:  More info about WalMart and compact fluorescent lightbulbs. An example of how irrational consumer choice is, by seeing how easily it's manipulated by merchandising; and how both environmental and economic results are far from optimal in a "free" market.  "Wal-Mart sold only 40 million [CF bulbs] in 2005, compared with about 350 million incandescent bulbs..

At the same time that it pressured suppliers, Wal-Mart began testing ways to better market the bulbs. In the past, Wal-Mart had sold them on the bottom shelf of the lighting aisle, so that shoppers had to bend down. In tests that started in February, it gave the lights prime real estate at eye level. Sales soared.

To show customers how versatile the bulbs could be, Wal-Mart began displaying them inside the lamps and hanging fans for sale in its stores. Sales nudged up further.

To explain the benefits of the energy-efficient bulbs, the retailer placed an education display case at the end of the aisle, where it occupied four feet of valuable selling space an extravagance at Wal-Mart. Sales climbed even higher.

In August 2006, the chain sold 3.94 million, nearly twice the 1.65 million it sold in August 2005.."  They need to double again to hit 100m in a year.
  11:58:00 PM  permalink  

 

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Last update: 2/12/2007; 8:37:16 AM.