This post originally appeared as a guest contribution on Rags Srinivasan’s Iterative Path blog.
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Like most people in the US, during Black Friday week my inbox received an onslaught of promotional emails from every company I have done business with. All of them, without exception were promoting sales and discounts.
In a previous post on this topic we established “When a marketer’s creativity runs out he defaults back to price discounts. “ Creating a promotion or a sale is the default way to generate sales in the short term. Even though we know, deep down, that short term discounts erode value and train customers to expect discounts as JC Penney learned the hard way.
It was Black Friday and we decided to stop by the Factory Outlet in San Marcos – my daughter had an eye on a pair of UGG Boots that I was hoping to get at a good price. This is what I found: It was not that surprising to find a line outside a popular store, especially on Black Friday, but there were a couple facts that made this experience interesting for me as a student of marketing and consumer behavior:
Continue reading “Marketing, Pricing and Value: what I learned during Black Friday”