Discounts will lead to a reduction of product value-
Constant discounts erode this perceived value and needlessly lower willingness to pay even more than free trials or other promotional offers. Customers think discounted products don't perform as well as their full-priced counterparts.
But generally Discounts does not always results in reduction of product value as
1. Discounting attracts new customers.
2. Discounting encourages undecided customers to purchase goods.
3. Discounting helps in clearing last season's stock.
4. Discounting attracts new sales from inactive customers.
Has e-commerce or online shopping changed the nature of “Place” in marketing
Online shopping makes doing business much easier and faster. Online shopping can save time for both the buyer and retailer. It helps in reducing phone calls about availability, specifications, and hours of operation.
Through the use of the right place, a company can increase sales and maintain these over a longer period of time. Place strategy outlines how and where a company will place its products and services to gain market share and consumer purchases.
Online shopping provides consumers with ultimate levels of convenience.
Online shopping has changed the nature of place in marketing as place is about getting the product or the service to the target market where customers want it, when they want it, and at a reasonable cost.
“Discounts will lead to a reduction of product value”. Do you agree or disagree? Provide evidence...
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