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Topic : Brand Value & Pricing
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Marketing & Branding

 

Do variable pricing destroy brands?

Created by : Saurabh Awasthi, SBU/Profit Center Head, ONGC  | 11 25 2010 12:01:45 +0000
Industry : Advertising/PR/MR/EventsFunctional Area : Business Processes(Operations)
Keywords : branding pricing do variable pricing destroy brands variable pricing
Activity:  214 views;  last activity : 12 06 2010 14:35:38 +0000

Many companies usually go for variable pricing with an intension to apeal every segmet of the market. But some succed & many fail to do so.......

So, do variable pricing destroy brands??

  
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Variable pricing is demand of competition and to stay the product in market. it affect a little bit but not more to any brand.
By Ravi Kumar Ravi, Graphic/Web Designer, abhimanyu infotech  | 12 06 2010 14:35:38 +0000
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Depends on lot of the things and other cost involved

but yes variable pricing can sometime create dissatisfied customers if the price difference is not justified.
By Raj Kumar, ASM, Videocon Inds  | 12 06 2010 13:36:13 +0000
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No,it totally depends upon the manufacturing companies whether they want to sell quality product or they want to make high profit from the market..
By Amol Gupta, Software Developer, Discoverture Solutions  | 12 06 2010 12:39:54 +0000
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Yes, It is destroy the brands it is like auction sales in market good quality good price and poor quality low price it show the quality variation in one product.
By M.B.MALANI , MBA/PGDM student, R.R.INSTITUTE OF MANAGEMENT BANGALORE  | 12 05 2010 16:39:11 +0000
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variable pricing do destroy as this strategy is considered to be the practice of those brands which indulge in auctions or think prospective buyer is not willing to pay the posted price, so either their product is not upto the mark or improper marketing may be the reason
By yashwant singh, Coal India Limited (HR/Personnel)  | 11 25 2010 17:23:47 +0000
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In my opinion yes it does affects the brand loyalty.

For example:

Lenovo has three lines of laptops, for example. The ThinkPad line is at the high end. The “value line” is at the low end and the IdeaPad line is somewhere in between. Prices in countries range from $349 to $1,999. Lenovo like many companies around the world is trying to increase sales by appealing to everybody. That seldom works.

Lenovo is suffering. After eight years of profitable sales, the company lost $226 million in its last fiscal year. Out went Lenovo’s American chief executive to be replaced by his Chinese predecessor.
By Saurabh Awasthi, SBU/Profit Center Head, ONGC  | 11 25 2010 12:01:45 +0000
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brand image of a product will be destroyed only when it lacks in quality...variable pricing doesn't destroy brands...but results in decline of profits.
By Ravanam naga durgesh, Junior engineer, Ericsson  | 12 05 2010 18:03:48 +0000
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variable pricing is done to increas the market share or customers.If product/ service dont belong to Luxary class/ status symbol ,variable picing/ increased customer base will strengthen the Brand value.
By Vivek Kumar Srivastava, Competence development Manager-Global Services , NSN  | 12 01 2010 07:12:19 +0000
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If proper planning is there then it will definitely works.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 12 01 2010 06:19:55 +0000
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when a firm opts for variable pricing they do so after deliberate consideration of possible outcomes.variable pricing is not a strategy , its a necessity as you have to sell products keeping in mind your target customers. Say you are selling some products in a millennium city for x rs, now you cannot sell the same in a semi-developed town of some other state. you need to focus on the dispensable income of the people relatively.
By Nisha Agarwal Agarwal, performance Management, Lanco  | 11 30 2010 05:12:26 +0000
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it never affect the business, the good marketing strategies never falls down, for variable market the variable pricing is a correct or good idea but the company have to execute it well
By P.Padmanaaban , Assistant Professor, Asan Memorial College of Arts & Science  | 11 29 2010 16:22:26 +0000
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