You work for a marketing agency advising a client considering whether to drop prices during an economic downturn. The client, a manufacturer of mountain bikes, believes that reducing prices would lead to more sales. The client is aware that lower prices would yield less revenue per sale. However, the client is unaware of any other possible negative consequences of dropping prices.

1. Advise the client of some of those possible consequences. Include a description of the psychological issues at play in dropping a brand's price.

2. Identify and evaluate price-adjustment strategies beyond a straightforward reduction in retail price that the client should consider.

Please answer all the questions

Please add a lot of information

Please answer question in paragraph

please add reference

Please add in text citation