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.
