What's Wrong with Cheapness?

Fast Company has an interesting post called "A Culture of Cheapness".  It argues that we as consumers have been trained to expect cheap goods, and that we won't pay for service and quality.

I kind of agree.  But not.  What's wrong with cheapness? 

Consumers just have a strong sense of value.  Take grocery shopping, for example.  They will pay more at Whole Foods, because Whole Foods provides an incredible range of organic products that they can't get anywhere else.  They will shop at Loblaws, because at Loblaws they can get great selection, clean, uncluttered shopping environment, and.... President's Choice.  If they value low prices they will choice Food Basics, Price Chopper, No Frills or Real Canadian Super Store.  They are willing to trade off service for price.  But, they are not willing to have no service and high prices.

This is consistent with the findings of a Harvard B School professor, whom I quoted in an earlier post, that loyalty programs should be about rewards other than price.  When you reward with price, you simply discount your brand.  When you reward with service, you add a premium to your brand. 

Comments

[Lilly]

You're the geatrest! JMHO