Many consumers are looking for good value product, that is, product quality can justify its price or a high-quality product at a good price. Fast-food chains seek to satisfy consumers by offering value meals. However, value does not necessarily mean lower price since consumers will pay more if they believe the offering worth its price. There is another way for brands to deliver value without lowering prices is to provide a differential benefit and convince consumers that the brand is worth the extra cost, which could be a better approach to avoid tarnishing the brand equity.
If marketers use pricing deal too often, consumers will perceive the special price as the regular price and will not buy the product unless the products are on sale. Therefore, it turns out to be a vicious cycle which can significantly lower the profit margins. Furthermore, too many deals could also damage brand loyalty as consumers become too deal—oriented. Consequently, it is important for marketers to identify deal-prone consumers because this will help them directly targeted this group of consumers. However, consumers react differently to different types of deals.
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