Price wars are a challenge to marketers, whether they are working on the retailer’s or the manufacturer’s side. Discounts seem to have become more frequent in the past couple of years, most probably as a direct result of the recession. Consumers are now far more price sensitive than they ever were and are constantly on the look out for great value and even greater deals.
However, most retailers today claim that their prices are lower than competition, so it is no longer the differentiator it once was. I therefore read with interest when Walmart announced last year that it was moving from its previous emphasis on low prices to one based on sourcing. Could they – and others – have finally worked out that pricing alone won’t keep their customers loyal in the long term?
Walmart logoIn 2007 Walmart replaced its “Always Low Prices, Always” slogan by “Save Money Live Better,” so this new push with the message “Made in the US” is definitely worth noting. This latest announcement is made in conjunction with its promise of an additional $10 million in grants to non-profits focused on “on-shoring” manufacturing efforts.
Read more at : Business2Community-Why Price Alone Won’t Get Your Customers to Remain Loyal; It’s Sourcing & Services That Matter by Denyse Drummond-Dunn