Murry Comments on Prices in Recession
Should prices on premium brands be lowered in a recession? A University of Iowa marketing professor thinks it might be a mistake for businesses to cut prices, particularly if they have high-end images. "If you have what the public perceives to be a premium brand, you might be doing long-term damage to that brand by lowering your prices," said John Murry, a professor of marketing in the Tippie College of Business and an expert in retailing and branding. "Building premium brands requires years of work and investment to convince customers that price is less important than premium performance or features. This perception can be quickly undone when marketers begin to tell customers to buy their products because the price is cheap."