Impact of technology and equipment equity on price levels of products
Marketing and Branding Research,
2017, Volume 4, Issue 1, Pages 89-99
AbstractThe dynamics of contemporary economic processes urge researchers in the marketing field to study pricing outside of its traditional role. Modern customer-oriented approaches examine price levels as an instrument which contributes to retention and attraction of clients. Retention and expansion of client base is a subject-matter of the concept of customer equity which aims at long-term enhancement of customer relationship value. This value depends directly on the price levels defined by business organizations. Therefore, excessive application of discounts and sales may be risky for the company as it may turn its clients into “discount hunters” which will have detrimental impact on customer equity. In this regard, the current study aims to discover opportunities to enhance price competitiveness through promotion of customer perceived value. In pursuance of the objective of the present study, the drivers influencing the perceived value and particularly the technology and equipment equity were examined. As a result, the content of the factor was clarified and its positive impact on the level of customer perceived value was established. Guidelines were established for building technology and equipment equity, enhancement of the perceived value of products, and price competitiveness.
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