How this value has changed over time must be a deciding factor as well.
In this article, Clearhound’s Fiona McAnena states that while setting a pricing strategy, businesses must think beyond just cash. They must resist the temptation to discount during a recession as it creates a downward pressure on margins.
While setting a pricing strategy, companies must factor in the category, brand, segmentation and timescale. Rethinking what creates value for consumers, and how this has changed over time must also be considered.
McAnena cautions that during a recession, brands that go for opportunistic price gouging will be remembered by consumers. She adds that brands must be in control of their pricing.
[2 minute read]