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The Evolution of Relationship Marketing

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There are also marked differences between retailers in terms of their pricing policies. These differences do not only relate to the general price level but also to whether a retailer predominantly pursues permanent pricing policies, or whether high prices alternate with low-price promotions. This latter strategy was an adequate tool in times of relatively high inflation and a subsequent lack of market transparency in order to attract customers. Nowadays, however, as inflation has come down and market transparency has improved, observers expect that there will be a gradual trend towards permanent pricing. With increased price transparency, competition is also likely to increase along with a downward pressure on prices

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