Economic downturn does hurt a consumer’s ability to purchase products, but it does not affect all consumers. Therefore the company should only lower prices in specific regions that have been effected the most while keeping the same price or even increasing the price in other locations. If the company targets big cities and metropolitan areas with people that have high incomes they do not necessarily need to lower prices. These people can afford products even if there is economic downturn so there is no problem with the price and thus it would make no sense to drop the price and suffer negative psychological effect. Furthermore, lowering pricing in geographical areas that are affected by economic downturn could be effective. These consumers would appreciate a price cut and will look at the brand more positively as they are meeting specific needs of these geographical
Economic downturn does hurt a consumer’s ability to purchase products, but it does not affect all consumers. Therefore the company should only lower prices in specific regions that have been effected the most while keeping the same price or even increasing the price in other locations. If the company targets big cities and metropolitan areas with people that have high incomes they do not necessarily need to lower prices. These people can afford products even if there is economic downturn so there is no problem with the price and thus it would make no sense to drop the price and suffer negative psychological effect. Furthermore, lowering pricing in geographical areas that are affected by economic downturn could be effective. These consumers would appreciate a price cut and will look at the brand more positively as they are meeting specific needs of these geographical