How Brands are Threatened by Online Prices War?

March 18, 2020

Everywhere you look, eCommerce is booming. More and more resellers appear online, selling your products. If you can’t measure it, you can’t manage it. Today, it’s clear that brands are operating in a vacuum, moving from one campaign to another without the necessary insights about their online resellers network. Thus, no optimization, no pricing policy integrity.

What is a brand image?

The brand image is the general impression of a product held by real or potential customers.

In other words, brand image is an aggregate of beliefs, impressions, and ideas that a consumer holds thinking at the brand. This image can be perceived in various ways by different customers.

That’s why, building a strong and consistent brand image is key for any business.

A strong brand image has several advantages:

  • Attract new customers, thus new sales
  • Ease new products introduction
  • Improve customer loyalty


With a long-term coherent pricing strategy, Apple has been able to build a strong brand image. Compared with other computers’ brands offering a wide range and complex pricing going from 100 EUR to 2.500 EUR.

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Building a brand image through pricing

Pricing is key to brand equity, as other differentiators. Prices are source of meaning and identity.


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Patek Philippe Nautilus (+50.000 EUR) vs Ice-Watch Ice Steel (149.00 EUR)
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Building a strong pricing strategy has positive effect on the brand image, while a poor strategy can do exactly the opposite. Finding the right pricing strategy is vitally important for the brand equity of your business.

Imagine a brand following a premium pricing strategy. Right after releasing a brand new collection, online resellers discounts prices and enter into an online prices wars. What would be the effect on your brand images, thus your business?

An everyday low pricing can create an image of second-rate products, which could have a negative effect on the brand’s equity. It could fail to capture your target audience.

Several studies examine people’s perception of Price versus Value.

One of those examines actual neurological responses to a wine tasting activity (2008, Goldstein & team). When told that a wine was more expensive, study participants experienced higher activation in the brain regions associated with feelings of pleasantness. To some extent, consumers are letting price influence how they feel about products and services.

It’s time to move on. How Koopol can help you?

Koopol gives brands control back. We give premium brands the monitoring and analytic tools they need to build a strong and coherent pricing policy with their online resellers.

Our mission consists in simplifying your life, by automating data monitoring ,collection, and analysis.

Based on advanced Machine Learning algorithms, Koopol is able to provide

  • 100% automatic online resellers detection: Koopol is not based on a fixed resellers set, everyday, new entrants selling your products are automatically detected,
  • 100% automatic product recognition: based on your product list, including title, description, brand and prices, Koopol is able to automatically match similar product together using innovative matching solutions,
  • Real-time price monitoring and custom notifications based on your needs.

Easily, brands know when their prices are dropping, by how much, and who dropped first.

Koopol’s key benefits

  • Amazon managers can improve their efficiency, control capabilities, and identify first movers influencing dynamic pricing
  • Sales teams can better identify and understand online resellers behavior not taking minimum advertised price into account
  • Brands can work to educate their retail partners on price dynamics in the category and help them avoid destructive “follow the leader” pricing activity.
  • Brands can build strong and reliable relationships with active online resellers by proving a relevant pricing strategy, and strengthen its distribution network

Keep control on your prices easily, and focus on your job: creating and selling the best products.