Brand behaviour affects purchase for 100m ‘corpsumers’ | WARC

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In the U.S., brands have found themselves front and centre in some of this year’s most significant news, and their conduct is more visible than ever. In the wake of Hurricanes Harvey and Irma last week, companies have been pledging to support the affected regions.

However, other brands have come in for intense criticism as a result of their dynamic pricing models. Airlines have faced criticism for enormous jumps in price for planes out of the affected areas. Amazon’s surge pricing also hiked prices for emergency supplies in the run up to Irma’s landfall in Florida.

While some economists maintain there is a case for ‘price gouging’, the option can be difficult to reconcile with good corporate citizenship.

As Richard Thaler, author of Nudge, noted of surge pricing with regards to ride-hailing app Uber, “if you gouge them at Christmas, they won’t come back in February.”  While a surge can bring a short-term gain, brands are there for the long term and must understand how they ensure their health throughout the long game.

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Brand behaviour affects purchase for 100m ‘corpsumers’ | WARC.