Big brands struggle to be price leaders without negating their perceived product quality amongst a cynical audience of consumers inundated with brand messaging.
A recent Saturday Night Live skit lampooned Joseph A. Banks for it’s “Buy 1, get 3 Free” suit promotion. While many consumers would be quick to judge a deal like that as “you get what you pay for,” consider Bed Bath andamp; Beyond as a comparative case. Their ubiquitous blue 20% coupons adorn mailboxes and refrigerators everywhere, without detracting from the quality of the brands and products they sell—because the value proposition is a reflection on the retailer’s markup, not the brands it carries.
Bed Bath andamp; Beyond shoppers are so accustomed to getting their discount (and employees so used to offering it) that I was offered a text for 20% discount opt in, while I was standing in line lamenting that I’d left my coupon on my refrigerator. Would I have walked out of the store if they hadn’t offered me an alternative to my 20% coupon? Probably not, but they didn’t take that risk! What other retailer discounts do you/shoppers take for granted?