Highlighting lower prices post-recession can be smart, as consumers become price-sensitive and companies compete on pricing. Historical parallels like the market revolution and legal actions against predatory pricing practices indicate that competitive pricing can be strategic in such economic conditions.
Sprint's marketing campaign that highlighted lower prices after a recession could be regarded as a smart approach. In economic downturns, consumers often become more price-sensitive, leading companies to compete on pricing to capture or maintain their customer base. This aligns with the historical context provided by the market revolution in the United States, which introduced a wide variety of goods, services, and innovations aimed at attracting customers.
Furthermore, the competition in the market can lead to predatory pricing to outlast competitors and later raise prices. It is important to note that companies like American Express and Mastercard faced legal action for imposing restrictions that discouraged the use of lower-cost options. These historical insights support the idea that highlighting competitive pricing can be a strategic approach in certain economic climates.