Thursday, September 27, 2012

Long Term Effect of Price Discounting

In my MBA economics course, we talk about price discounting.  One of the ideas that we look at is the impact that price discounts have on consumer behavior.  There are pros and cons of price discounting.  One pro is that it will increase customer traffic, and one con is that price discounting can have negative effects on customers in the long term.  Here is such a negative example.

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