Slashing prices isn't the same as having a marketing strategy: When you cut your price, there’s often no way back
When business conditions are as tough as they are today, and sales flat or even declining, too many marketers often see a price decrease as an easy and reversible choice. However, what may look like a quick short-term strategic option can have devastating long-term consequences. A price cut may lower the perceived value of products and services, depreciate the brand or even trigger a price war.
[This article has been reproduced with permission from IMD, a leading business school based in Switzerland. http://www.imd.org]