How do discounts affect brand loyalty?

How do discounts affect brand loyalty?

Discounts can attract new customers and encourage repeat purchases, but they may also devalue the brand if overused.

Can frequent discounts harm a brand's image?

Yes, frequent discounts can lead customers to perceive the brand as less premium, potentially harming long-term loyalty.

What strategies can brands use to maintain loyalty while offering discounts?

Brands can offer exclusive discounts to loyal customers, create loyalty programs, or provide value-added services instead.

Are there any studies on this topic?

Yes, several studies indicate that while discounts can boost short-term sales, they may negatively impact brand perception over time.