Essay: Value of price discounting

A good example is of a company that values price discounting to beat its competitors that given by Muhtar Kent, the Coca Cola president. He has been able to make Coca-Cola products very popular all over the world. He believes that that the three thumb rules need to be applied. These are discounting briefly, discounting credibly, and discounting relatively.

Price discounting has been used widely and as Dawes (2004) argues, the customers have become desperate and this has undermined brand equity although it is expected to emphasize on it. This has forced the Coca-Cola president to engage in discounting briefly in which price discounting is done for only a short period of time thus not lowering the value of the brand.

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