BUS 343 Lecture Notes - Competitor Analysis, Brand Equity, Pricing Strategies
20 Nov 2012
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They got massive sales but their competitors also had a spike in sales. It convinced people those who were uncertain about buying a car to buy one. However, they were looking around and not just go to those who were pricing it competitively. Consumers thought that since ford etc gave massive discounts, now is the time to buy a car. Fact is, dependability wise, the us cars are far better than the european counterpart. Perceived product quality = product quality, history, price, promotion, place. Price can be changed quickly and easily, but the effects can be long-lasting and far- reaching. Price discounts = buying market share : many customers simply bought earlier (those who were supposed to buy in the future (in the higher price) just bought it earlier at the discounter price. Firesale message erodes brand equity further, especially when coupled with advertising cuts. Some non-u. s. brands with good brand equity actually benefited during the promotion (why?)
