Price guarantees are an increasingly common feature of many retailers’ value strategies – but do they work? In competitive markets, where discounters and e-commerce players are a growing threat, it’s easy to see why established players want to communicate a clear ‘value’ message.
But on the other hand, guaranteeing to match competitors’ prices can be expensive, and can conflict with the rest of the retailer’s brand positioning. This short article describes three different ways that price guarantees can be used effectively:
- To reinforce value leadership.
- To drive consideration and conversion of prospects into customers.
- To highlight the overall competitiveness of high-low value strategies.
