[1] The strategy works on the expectation that customers will switch to the new brand because of the lower price.
Another potential disadvantage is that the low profit margins may not be sustainable long enough for the strategy to be effective.
A Friday night trip to a video or DVD rental shop was a family tradition across the nation for at least a generation.
When Netflix entered the market, it had to convince consumers to wait a day or two to receive their movies.
[citation needed] In an empirical study, Martin Spann, Marc Fischer and Gerard Tellis analyze the prevalence and choice of dynamic pricing strategies in a highly complex branded market, consisting of 663 products under 79 brand names of digital cameras.