Every time I read your posts, I found how much you are right, and … almost nobody (businesses) applies these rules ! In fact, there are no strategies in price wars. Many, act as in Pavlov’s theory: It’s crisis? Ok, let’s cut our prices! I saw it in Romania from the beginning of the crisis. Even if in Romania the crisis were far away, local business were quick to starts cutting prices – as a measure of ‘preparing for crisis’. Now, more than 150,000 companies got out of business!
And, for the majority, marketing is still an expense not an investment!

Greetings from Romania!