Bestselling author and entrepreneur Seth Godin once said, “Cheaper is the last refuge of the person who's not a very good marketer.”

A knee-jerk reaction in times like these is to shout - “Sale! Free! Extra!” Although slashing prices may appear to be an appealing strategy, it will likely have a negative impact on your brand. This can be very dangerous territory in the long-term, particularly if price is an integral ingredient in the brand’s upmarket position. Research proves that discounting not only devalues the consumer’s perception of a brand, but it actually decreases the quality of their brand experience. Read the last issue of Upmarket: Is perception indeed reality? for an indepth report on how price affects the consumer. Bargain shoppers may flock, but you’ll inevitably alter the brand experience for your consumer. Low cost translates to low quality and once a price-premium is lost, it is rarely recovered.

Here’s an idea for Starbucks: keep charging full price for the coffee and food, but make the wifi free for all of your customers. I love Starbucks coffee, but since another coffee shop gives me free wifi, I go there now. They have great coffee, too, and the owners understand that a recession is going on. They know I know how cheap it is to put in wireless for all of their customers. And they're not gouging me for a small portion of the wireless access fee. So I stay a little longer, and I buy more coffee. And I tell my friends. We meet there for coffee now. Sure, we still drink Starbucks, but we buy it at the grocery store and drink it alone. If I were Starbucks, I’d be worried that my brand is losing relevance.

During past recessions, it was common for hotels to cut corners and sacrifice quality in an attempt to decrease operating costs. And previously, it was also relatively easy to contain the backlash from dissatisfied customers as courses of action were limited to comment cards and phone calls. In this recession, that is not the case. What were once private matters between guest and hotel management, are now invading the public sphere. The Internet, specifically Web 2.0, has unalterably expanded the borders of information sharing. A negative review that reaches millions can have a detrimental effect on any product, service, or brand.

But the opposite is also true. A rave review can generate buzz, business, and build a great reputation. One WOMMA study found that 85 percent of consumers prefer peer reviews to expert reviews. So say thank you, personalize interactions, offer gifts with purchase. Deliver on the promises made in your campaigns and your customers will remain loyal.