Reaserch On Effects Of Price Discount On The Brand Equity

Affected by the economic environment, the retail market has a rapid develop-ment.Many companies are looking to occupy a larger market share in the field, to get morebenefits, which also led to fierce competition between businesses to each other.Ourcountry implements reform and opening policy,many powerful foreign companies joinin. Such as Carrefour, Wal-Mart, Procter&Gamble, with their rich managementexperience, advanced technology, the advantages of the existing marketingchannels,they quickly occupy Chinese retail markets, which led to fierce competition.In order to obtain benefits in the competitive environment, development and growth,many companies take to explore in the management, development, marketing andother aspects, trying to find suitable business models for enterprise development. Inthe short term, prices is the most significant impact factor on product sales, manycompanies implement a series of pricing strategies and price discounts are often usedin corporate marketing approach.Brand is crucial for development of an enterprise, a strong brand can enhancecorporate image and reputation, be able to increase the added value of products, sothat low-cost products have a high income, one with high brand value the enterprisesin the market has an absolute advantage. This paper is in the different brand level(high products and low product) perspective, to study the relationship between pricediscounts and brand equity by empirical research methods. Footwear is the target inthis paper.Conclusions: Firstly, high-end products are suitable for deep discounts but thelow-end product is not suitable for deep discounts,because deep discounts have agreater negative impact on low-end goods brand assets. Secondly, businesses shouldimplement the price promotions as a long-term strategy, rather than a short-termemergency tools. Thirdly, businesses should have a brand awareness efforts toimprove brand value, create a good brand image. As the researcher in this area is stillsmall, information can be drawn is few, so it is inadequate in some aspects and furtheradditions and amendments should be done next.