Heavy focus on price reductions and discounts during recession allow firms to improve long-term brand equity and price integrity.

Question

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Heavy focus on price reductions and discounts during recession can negatively impact the long-term brand equity and price integrity of a firm. Price discounts can send a message to consumers that the product is of low quality, and can lead to a perception that the brand is a discount or value brand, rather than a premium or luxury brand. This can be difficult to overcome in the long-term, even after the recession has ended. Instead, firms may want to focus on other strategies such as product innovation, customer service, or targeted marketing to maintain brand equity and price integrity.

Heavy Focus on Price Reductions and Discounts During Recession Allow