Cost Effective? Part 3 of 3
Heavy promotional pricing on the Web will turn branded products into commodities
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Jim Coogan
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1. Customers become dependent on promotions and only buy promoted items. They become conditioned to wait for the next promotion and won’t buy from catalogs without a promotional offer. After a series of promotional offers, customer response may fall to levels prior to the promotions. The lift in response from offering promotions may disappear over time. And response rates without promotions may fall well below historical response rate levels.
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