Many Companies Offer Deep Discounts Free Trials Product Order Attract Customers Think Inst Q34296916

many companies offer deep discounts and/or free trials of theirproduct in order to attract customers. Can you think of an instancewhere this backfired? How could the company have corrected it?

Expert Answer

Yes. The incident happened in the Indian retail market around13-14 years ago. At that time, abnormally high discount in therange of 70-80% was unknown to the customers of Indian garments.The market was dominated by exclusive brand outlets, multi brandoutlets and independent retailers. E commerce was unheared of thosedays. A local company decided to exploit the Indians’ love fordiscounts and started selling its garments at discount of 60-70%.In those days