Cost Effective? Part 2 of 3
The Web’s effect on pricing strategy as it turns branded products into commodities
2. Use promotions rather than across-the-board price cutting. Promotions have strong advantages over universal price discounting, including the following factors:
* not all customers redeem promotions, greatly reducing the overall margin hit;
* promotions can increase response rates dramatically; conversely, overall price decreases often don’t increase response because customers are unaware of the lowered prices; and
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