10 Pence Promotion

‘There is no product loyalty that a 10 pence promotion cannot break.’  Required: How far would you agree with the above statement?  In your answer show how loyalty to any product, whatever it be, can or cannot be broken by a cleverly designed price promotion. Illustrate your answer with examples. My own notes Keywords, theories to define-  What is customer value? Cost and worth Cost-based pricing Competitor-based pricing Price elasticity of demand Factor’s affecting customer’s sensitivity to price Buyer’s perceptions and preferences (Unique Value effect, Price-quality effect) Buyer’s awareness and attitude towards alternatives (substitute awareness effect, difficult comparison effect, sunk investment effect) Buyers ability to pay (Total expenditure effect, end benefit effect, shared-cost effect, inventory effect) Social objectives Technology facilitates Differential pricing (airlines, taxi-hailing apps) Ethical concerns over differential pricing Firms: Global adjustments in pricing Pricing by perceived value