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]