Chrysler's staff discounts: An unwise quick fix.(employee discount incentive program)(Brief article)

Advertising Age, July, 2006 by Thompson, Bonnie

Byline: Bonnie Thompson

Chrysler Group plans to clear its crowded lots for the new-model year by reviving its employee discount incentive program in July. The discounts are successful at driving sales, but are widely criticized as short-term solutions that weaken brands. In an Advertising Age online poll, 60% of voters said Chrysler should shift its focus to long-term branding and ditch this quick fix.

Scott Hrdlicka, director of marketing at TriTech Corporation of America, said the incentives devalue the product in the eyes of consumers. "Repetition of such programs only communicates to consumers that their automobiles are not worth the standard asking price,'' Mr. Hrdlicka said. Also, the program can alienate existing customers, especially those who...

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