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The Short-term Death Spiral of the Discount Fix

  Comment: Another example of retailers digging their own grave by avoiding the need to personalize the product value instead of the price.    Retailers Change Pricing Models to Avoid Race to the Bottom Subhead: Personalized price offers remain more a fantasy than a reality Author: Andria Cheng  e Marketer   March 30, 2017 With price and discounts remaining consumers’ key purchase decision factors, retailers are racing to change the way they set prices and markdowns. Merchants are trying to navigate a narrow path: They don’t want to be undercut by competitors and lose sales, but they also don’t want to get caught in a “race to the bottom,” where price cutting becomes so extreme that margins disappear. A new study by market research firm RSR shows dramatic changes in the way retailers set prices. For instance, more than three-fifths of retailers are now collecting data from “new channels,” or non-transactional areas, including consumer email opens and...