Want to kill off your brand? Start by cutting your prices…
According to a new report by The Futures Company, companies that lower the prices of their products during the recession may risk damaging long-term brand perceptions because suspicious consumers assume something is wrong with the product or brand if it’s being discounted.
70% of the consumers will say “the brand is overpriced”. Another 62% of consumers said ”the product is old, about to expire or about to be updated, and the company is trying to get rid of it to make room for the new stuff.”
Results from the Dollars & Consumer Sense 2009 study show that maintaining prices even in a down economy may actually be the best way to protect brand image.
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