'If Brands Are Built Over Years, Why Are They Managed Over Quarters?' - Knowledge@Wharton

Here's a summary of new research from Len Lodish and Carl Mela on the impact of short-term discounting on brand equity. Their work indicates that brand managers are focused on short-term results and are using quick fixes such as trade promotions and price cuts to boost sales. As a result, consumers have become much more price sensitive and less likely to choose based on name brand preference. The authors provide metrics to measure the true, long-term success of brands.

Link: 'If Brands Are Built Over Years, Why Are They Managed Over Quarters?' - Knowledge@Wharton.

Comments

[Rabab Raja]

I found the article really intresting because I never thought that well known brands were affected by price too. It is intresting to find out that people no longer give importance to brand names but instead they give it to prices.