Cost Effective? Part 3 of 3

In the final part of this three-part series on how catalogers’ pricing strategies are evolving in response to the Web’s effect on branded products, this week I’ll look at the economic factors that can affect promotional pricing strategies.

(For part 1, click here; for part 2, click here.)

While using a promotional pricing strategy can prove effective, there are a number of economic issues you should concern yourself with. Pricing below existing market prices has a number of pitfalls, including the following issues.