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Discuss pricing strategies in dealing with an economic downturn with your own examples.

Discuss pricing strategies in dealing with an economic downturn with your own examples.

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Answer #1

During the economic downturn, it becomes difficult to keep attracting the customers as there is a massive fall in retail sales. So, to keep the branding, companies need to simplify their prices as well as provide some discounts to the customers so they can be encouraged to increase their purchase. Companies in this situation may temporarily lower the prices of the products but it is recommended not to cut the price too much as it may impact negatively.

The pricing structure of the products and services must be justifiable so that customers may eager to buy the products as it is within their budget. Providing special discounts for some particular products would show that companies are supporting the customers during tough economic times. This may increase brand loyalty. Companies can give discounts to mid-cheap items and avoid selling expensive products when the economy is down.

Hope this helps :)

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