WWZD (What Would Zappos Do?)

As many people may have heard, on Sunday night, Target began advertising a Sony Playstation 3 on their website for $39.99.

This also got passed on to Amazon.com who was selling the Playstation units for Target.

Many people rushed to these websites to get in on this great sale.

On the Target website, some orders went through, and some orders got to the confirmation page and displayed a Playstation 3 controller as being the item that you were purchasing.

On the Amazon website, for a few hours, orders went through and consumers received a confirmation email of their purchase (just like every other transaction on Amazon.com).

On Tuesday those that attempted to purchase a PS3 at $39.99 received an email saying that the order had been canceled due to a mismatched price.

Should Target honor these sales?

On the “yes, the should honor these transactions” side:

-If you encountered such a price in a Target store, they would honor it.

-It is false advertisting (and Amazon Marketplace terms and conditions say “Honor your commitment to buy or sell” and “Do not misrepresent yourself”

-Target and Amazon received plenty of ad revenue due to the increased traffic (probably not enough to cover the cover their costs, but it’s revenue that they wouldn’t have otherwise gotten)

-It’s great PR if they do



On the “no, they should not have to honor these transactions” side:

-People knew it was a mistake and are being greedy to take advantage of a simple mistake.

-In Amazon’s terms and conditions they explicitly say they reserve the right to cancel an order if the actual list price is significantly higher and there was a pricing error.

What would you do?

What should Target do?

What would Zappos do?

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