The Study About The Impact Of Products Price Competition On Corporate Reputation

The price competition is an important strategy behavior which manyChinese companies always use. Most former research only analyses theadvantages and disadvantages of price competition from the angle ofeconomic efficiency, also had a part of scholar to mention the impact ofprice competition on corporate prestige, corporate image and brandinfluence, but very little scholar had to study the impact of pricecompetition on corporate reputation. Because the corporate reputation canmanifest the two dimensions of appraising corporate efficiency, economicefficiency and the fulfillment of social responsibility, it has become animportant standard of weighting a company. The first innovation spot ofthis paper is to regard the corporate reputation as a standard to appraisethe behavior of price competition between companies.This paper mainly researches the impact of lower prices competitionof companies' products in the market, mainly refers to the impact of asingle company's lower prices behavior on this company's corporatereputation, and the company is referred to the one that the brand of lower prices products belong to. This research mainly includes five parts: Thefirst part elaborates the selected topic background and the researchsignificance of this paper; Through combing the domestic and foreigncorrelative literature and review, defines the important concept of pricecompetition, corporate reputation and so on; Points out the research keyand the technique of this paper. The second part through to dividestakeholders, points out that to research the impact of price competitionon corporate reputation is mainly to research price competition will howto impact the comprehensive appraisal of the two mainstakeholders(customer and staff) of companies; Through to summary thefive former evaluating methods of corporate reputation, designs thetwo-dimensional appraisal index of corporate reputation, this is thesecond innovation spot of this paper; And based on the above rationaleproposes the main supposition of this paper. The third part through thepre-investigation and the forecast to develop the meter and questionnaire,uses the SPSS statistical analysis, and analyses the impact of pricecompetition on corporate reputation by the real diagnosis researchmethod. The meter and questionnaire in this part is the third innovationspot of this paper. The fourth part is to suggest how companies chose theprice competition strategy as well as how they defend their corporatereputation in the price competition. The fifth part is to summary the fullpaper, separately carries on the subtotal about the fundamental research and the real diagnosis research of this paper, and points out the innovationspots, the limitation as well as the following research direction of thisstudy.This paper is for the purpose of showing that the price competitionhas the pro and con sides, its advantages and disadvantages are decided tothe utilization of this strategy by companies. The paper mainlyemphasizes the "moderate" in the process of reducing prices, which is tograsp the suitable scope and frequency of reducing prices, the lowerprices competition between companies also should be controlled in themoderate scope. In this paper, "moderate" lower prices refer to the scopeshould be bigger than the absolute valve value of the consumer about thecognition and be smaller than the consumer's internal reference price ofthis company's products, and the lower price should maintain stably inthe certain time. Companies should make moderate lower prices scopeand frequency according to the company's own development condition,the profession competitors' special details, stakeholders' attitude and themulti-positions market investigation.