Between
November 1999 and September 2000, Priceline.com offered a new service in grocery
stores in certain US cities, which allowed customers to shop for low prices
online. The service required consumers to make bids on various items and then
Priceline would tell them whether their bids were accepted. Consumers would then
go to the grocery store to collect the actual items and use their Priceline.com
card to pay at the register. The article discusses how this service affected
members of the grocery marketing channel including: retail stores, manufacturers
of packaged goods and consumers. The analysis suggests that the Priceline system
could have altered the power structure of the grocery industry, had they been
able to keep the cash draining service alive and had they cultivated the
appropriate partnerships.