What is one of the consequences of poor pricing strategies?

One consequence of poor pricing strategies is a reduction in brand loyalty. When a company implements pricing that is perceived as unfair or inconsistent, customers may feel alienated or undervalued, prompting them to seek alternatives that offer better value or more predictable pricing. This can happen if customers perceive the price as either too high for the value provided or if discounts devalue the brand in their eyes. As trust and perceived value diminish, consumers will be less inclined to remain loyal to the brand, leading them to switch to competitors that they find more appealing in terms of pricing and value. Therefore, pricing plays a crucial role in maintaining customer relationships and loyalty, and mismanagement in this area can significantly impact a company's long-term success.

The other options focus on outcomes that generally would not result from poor pricing strategies, such as increased engagement or improved perceptions, which typically arise from effective pricing and brand strategies. A competitive pricing advantage is often a goal of strategic pricing but is unlikely to be achieved through poor pricing practices.