What makes the belief that pricing low guarantees market success a myth?
Many assume that offering the lowest price is the best competitive strategy. This myth overlooks the value of differentiation, quality, and perceived brand worth.
Why It’s Misleading:
Price Wars are Unsustainable:
Constant undercutting erodes profits and brand equity.
Perceived Value Matters:
People associate low price with low quality.
Customers Seek Experiences:
Loyalty often stems from service, not savings.
Alternative Strategies:
Value-based pricing
Premium positioning
Loyalty programs
Conclusion:
Price is only one piece of the puzzle. Competing on value and experience often yields better long-term results.
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