Underpricing is typically a short-term strategy and not suitable for the long-term. Sustained underpricing can lead to several issues:
1. Sustainability: Continual underpricing can deplete financial resources, making it unsustainable in the long run. 2. Market Expectations: Constantly low prices can set unrealistic market expectations, making it difficult to adjust prices upward. 3. Quality Perception: Long-term underpricing can lead to a perception of inferior quality, which can harm the brand's reputation.