Care for a manicure before your meal?

On why businesses offer seemingly non-core value-added services, SMU Assistant Professor of Marketing (Practice) Marcus Lee commented that “they are really trying to stand out from their competitors in an attempt to stave off the very real possibility of having to compete on price if their industry was commoditised. However, he noted that “nothing is for free. Something given on a complimentary basis does not mean the consumer, will not eventually pay for it”. To offer the freebies, businesses often increase the price of their core services across all customers, he explains. On the sustainability of this marketing strategy, Assistant Prof Lee said it will depend on whether there are enough customers who will value such services and are willing to pay more for them.

Source
The New Paper