The Dangers of Free-Riding

Topics:
Pricing Strategy
Tags:
MarketingProfs,
Retail,
Retail Company
Source:
MarketingProfs

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Overview: Manufacturers and retailers have traditionally hated free-riding, for obvious reasons. Academic research indicates that over time free-riding will lower the incentives for sellers to maintain their service levels. It also attracts only the most price sensitive consumers. Read in the article that free-riding is used as good news for consumers. Unchecked as it will be when wireless really catches on, however, could mean a free fall for consumers, retailers, and online companies as well.

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Format: HTML | Date: Mar 2001 | Pages: 1

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