tawandamusarurwa
Cresencia Marjorie Chiremba
“Christmas is the spirit of giving without a thought of getting. It is happiness because we see joy in people. It is forgetting self and finding time for others. It is discarding the meaningless and stressing the true values” — Thomas S Monson
The festive season is here.
It is a time of joy and cheer.
But, for some it is a time of fear, as prices tend to soar.
Personally, I blame these price increases on price gouging by certain companies.
Price gouging during the festive season is a common phenomenon that affects both companies and customers.
It is a practice where businesses take advantage of the high demand for goods and services during the festive season to charge exorbitant prices.
It leaves consumers with few or no choices.
This practice is unfair and improper; it burdens consumers.
This quick way of making super profits during the holiday is ill-advised.
Let us spread the word and take a stand against price gouging in Zimbabwe and everywhere else.
The practice has been a major concern for consumers and has led to a lot of complaints, especially in the transport sector.
I will explore the impact of price gouging on both companies and their customers.
i) Effects on Consumers
Financial Burden
Price gouging during the festive season has become a major issue for consumers. Many businesses increase prices of their products and services during the festive season to take advantage of high demand. This practice has a significant impact on consumers, especially those operating on a shoe-string budget.
Reduced Purchasing Power
The purchasing power for most consumers is reduced, which means it may limit the amount of goods they buy to make their holiday merrier. Transporters also tend to hike their prices during this season, and this discourages a lot of travellers from visiting places of interest or relatives and friends during holidays.
Negative Impact on Holiday Spirit
For most children, the Christmas holiday can only make sense if they get new clothes. However, price increases can be a major impediment.
ii) Effects on Companies
Reputational Damage
While it may seem like a good idea to increase prices during the festive season, it can have a negative impact on the company’s reputation. Consumers may choose to avoid doing business with them in future. This can lead to a loss of customers and revenue for the company.
Loss of Customers and Revenue
When customers feel that your prices are way too high compared to your competitors, they may switch sides forever. This will lead to a permanent loss of customers and revenue.
Legal Issues
Price gouging can also lead to legal issues for companies. Many countries have laws against price gouging.
The practice can lead to hefty fines and loss of reputation for the company.
Overall, price gouging during the festive season affects both companies and customers. So companies should focus on providing quality products and services at reasonable prices to attract customers and build a positive reputation.
Consumers, on the other hand, should avoid doing business with companies that engage in price gouging.
*Cresencia Marjorie Chiremba is a marketing enthusiast with a strong passion for customer service. For comments, suggestions and training, she can be reached on [email protected] or on 0712 979 461, 0719 978 335
Online Reporter