Pricing

damage is frequently used by consumers as a key indicator of result prime(a) or benefits. Brands with high up determine are often perceived to be of higher(prenominal) quality and less exposed to competitive outlay reductions compared to firebrands with baseborn price (Yoo, Donthu & Lee 2000). As supported by Rao and Monroe (1989), their question illustrates that price is positively related to perceived quality. By increase perceived quality, price is related positively to brand equity.
Price discounts are prevalent because they stimulate immediate purchase of the product, resulting sales to escalate (Tellis & Zufryden 1995). Marketers use price discounting with the hope that it will get new customers to buy and try their product and to continue purchase later on. The effects of price discounting are observable and measurable. Compared to perceptions of quality or product formulations, prices are appealingly simple for marketers to adjust. In addition, there are no costs for new furtherance or reproduction involved. In addition, influenced by continuing demands for price reductions by consumers, discounting is one way to achieve tactical gains in sales volume. In contradiction, the much price competitive firms are, the more they reinforce the customers’ view that they are indeed commodity suppliers (Christopher 1995).



Moreover, product discounting contributes to an increase in store traffic, allowing manufacturers to maintain their dealings with retailers by ensuring that the brand is well stocked and has sufficient shelf space. consort to Schultz, Robinson and Petrison (Tellis & Zufryden 1995), price discount provides a characteristic that strengthens a brand’s salience and encourages consumers to choose that brand among others within their conference of brand repertoire. However, in spite of immediate short-term financial success, price discounting is held to eventually destroy brand equity.
In conclusion, price discounting does have its obvious advantages in short-term,...If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper