The Death Spiral

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The Death Spiral - if the company (incorrectly) tries to unitize the sales and marketing costs across the products produced and then folds that into the pricing of its products, it can wind up in a self-reinforcing situation where it is raising its prices despite falling demand and without regard to the competitive environment.

Literature

http://steveshu.typepad.com/steve_shus_weblog/2006/03/the_pricing_dea.html

Author

Zieliński Tomasz

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