Question

Topic: Strategy

Regular Price Protection, And What Are They For?

Posted by Anonymous on 2/23/2004 at 2:19 AM ET 50 Points
I'm having a little problem about regular price protection.
As far as I understand, a regular price protection is mainly to assure customers that they are receiving a fair price in the market. So my question is:
Who are they designed to influence? Is it to influence price sensitive buyers? Does it increase customer loyalty? Is this a customer retention or customer acquisition strategy?
Thanks in advance!
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RESPONSES

  • Posted by Blaine Wilkerson on 2/23/2004 at 1:54 PM Accepted
    I would have to say the answer to all of your questions is "YES"!

    Price protection is maily utilized to give the customer, or potential customers a "firm" price they can either rely upon to be available after making up their mind, or as a reimbursement for the difference if they should find the same product elsewhere for a cheaper price after purchase.

    Of course alomst every company that offers such a service places a time limit and certain restrictions as to which products or services qualify.

    Here are a few examples from a PC and Credit Card company:

    https://www.pcguide.com/buy/aft/finalPrice-c.html

    https://www.citibank.com/canada/cards/english/009j.htm

    You will find that upon doing a simple google search on "price protection", nearly 100% of the companies who utilize such a service do so for the reasons mentioned above.

    I hope that helps!

    Good Luck!!
  • Posted on 2/23/2004 at 2:28 PM Author
    I just wanted to say thank you very much. Both comments clarified my question.
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