The answer is definitely not obvious and could surprise you.

It's a bit of an oddity that after thoughts of advertising, the very next thing people think to use TAGs for is for pricing in Retail, or more precisely, comparative shopping. At some future point, a red and white TAG might denote a sale price but since prices affect everyone, perhaps there is a correlation that's not so odd. Still it not only reflects our priorities but also clearly postulates consumer expectations of TAG.

Several years ago, during a CNN discussion about QR Codes, one of the participants was almost giddy with excitement at the prospect of being able compare prices while shopping. There is nothing wrong with that, except he made the statement that he could compare the retailer's price and then determine where else to shop for the item. That does not sound very encouraging for retailers..

People, of course come in all shapes and sizes. Their choices in retail are a subject that takes up volumes. Some would travel miles to save pennies and others would knowing pay more out of loyalty, service and a host of other reasons. So in many cases, knowing of a lower price elsewhere could just as easily start a conversation with the proprietor about a reduction to make the sale.

Another topic whose scope far exceeds the discussion here is the psychology of pricing and differing methodologies can succeed in the same market. Consider how some people are naturally inclined to barter over everything, while others find it distasteful and prefer a "No Dicker Sticker". One fits nicely into the market mentality, while the other professes a desire for fairness. The difference comes down to one being hands-on and the other hands-off. In truth, both are attempts at reaching the same goal, which is to minimize personal expense, while recognizing the necessity of a measure of profit.

TAG can certainly facilitate this range of consumer concerns but it can also provide benefits to the retailer beyond the instant costs. There are a number of soft cost issues such as knowing your customers and establishing loyalty but the key for retailers is that there are a number of real cost points of interest.

One issue for many retailers is that while their doors are open they never account for who came to their store and that is true of every business larger than that 5-person organization. One of the first things that retailers need to consider is an exchange for participation. For opening your merchandise to TAG, consumers should be prepared to provide some information in return. The what, and the how are as varied as the other details but are essentially for a symbiotic relationship.

In any type of retail business, just knowing the volume of shoppers is a benefit but having additional metrics can open the door to increased professionalism and better customer satisfaction. As example, consider how businesses could interact with frequent shoppers, providing special discounts as prices are scanned. Alternatively, comparing purchases against items scanned to determine whether to send a discount offer to a person en route to another retailer. There are endless opportunities to interact with your customer, if you know who they are.

One simple method for implementing this type of reaction is to locate an actionable TAG at a stores exit. Something like "Scan this TAG for last minute specials" that could initiate reconciliation of the items a patron scanned with any discounts available. Furthermore, such a process could involve any party in the distribution chain, manufacturers, distributors and retailers.

Many manufacturers and distributors are already paying for this type of information, so they too would gain a benefit from retailers TAGging items. And while nothing prevents a manufacturer from placing their own TAGs on their products, it would not include the retailer's price. Therefore, this is information that retailers can then use to negotiate with manufacturers and/or distributors to coordinate joint marketing, merchandising and sales efforts.

Essentially, TAG can help all retailers to get closer to their customers and accrue all the benefits that entails.