Questions raised over stores' price war

Shoppers' purchasing decisions, according to Hoffmann, are increasingly influenced by the retailer's credibility, reliability and overall service, specifically whether it has an easy return and exchange policy, safe and convenient payment system and fast, dependable delivery.

Traditional stores should differentiate themselves from online-only players by providing an improved value proposition, for example allowing customers to return web purchases to stores and showcasing their online products with store demos, he said.

But the reality is, despite the generous discounts offered by merchants, online buyers found they are getting discounted service as well.

Dong Juan, a 34-year-old company employee in Shanghai, has been checking on a 42-inch Skyworth TV since the price reductions began but she failed to buy it because the item was always sold out.

"They don't keep enough in stock and just pay lip service," she said. "They simply want to catch people's attention."

hewei@chinadaily.com.cn