Thursday, June 11, 2009

Variable Pricing Is Brand-Destruction Machine

This seems to be an ongoing issue our clients deal with—balancing the trick of futzing with price to maximize revenue based on demand and building a brand. If brand's are built on trust, then futzing with price inherently messes with that trust. How can a consumer trust a brand experience if one of the most basic elements of it is always shifting? 

There is also that other "clever" trick of cutting price to generate demand or drive switching behavior. In an age when consumers are overwhelmed with choice and the variables of choice, why make price one of them. A brand that has legitimate differences should celebrate those differences and leverage them to drive demand and switching. 

Demand driving with price cutting isn't sustainable, can be undercut by a competitor, and trains the consumer to shop on price—not trust.

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