Reflections of a BizDrivenLife:
If you are selling premium items, one way to increase your market reach and customer base may be to downsell. Create a low cost, easy to purchas e alternative that are meaningful to your target customers, and yet does not need a big decision or commitment in time or money.
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Igor M. (BizMord Blog) on August 18th, 2006 at 12:52 pm
This can be argued (just like everything else in the world).
It all depends on your brand and your customer. Sometimes lowering cost can kill a brand that is being perceived as a “High end”, “Expensive”, “High quality” brand.
This is why Mercedes sells Chrysler and Intel sells Celeron. All they did is separate the cheap stuff from the expensive.