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The example of a supermarket offering a major brand at half off in the book 'Contagious: Why Things Catch On' illustrates the power of pricing strategies in influencing consumer behavior. When a product, especially a major brand, is offered at a significantly reduced price, it creates a sense of urgency and value among consumers, leading to increased sales. This strategy can be particularly effective in driving volume and clearing inventory. However, it's important to note that while this approach can boost short-term sales, it may not be sustainable in the long term as it could potentially devalue the brand and lead to lower profit margins.
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Why do some products and services become popular with consumers, while others seem to fade along the sidelines? Three important factors play a role in...
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Pricing does matter. It is no big surprise that people would much rather pay a lower price than a higher one. So, in the case of two very similar products that offer the same benefits, odds are very good that the less expensive one will win out. Think about a supermarket that suddenly offers a major brand at half off. Those products quickly fly off the shelves.
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