PRICE DEBASING IN PAKISTAN'S PAINT INDUSTRY AND THE EROSION OF DEALER CONFIDENCE: DILEMMA OR MYTH

Abstract

This research paper investigates the phenomenon of price debasing in the paint industry in Pakistan and its implications for dealer confidence and market stability. Amidst increasing competition and commoditization, paint manufacturers often engage in aggressive price undercutting to secure short-term market share. However, this strategy may be eroding long-term trust and profitability. Using mixed-method research, including surveys and interviews with 150 paint dealers and 10 industry experts, this study explores whether price debasing is a real threat or a misperceived concern. The findings suggest that while price competitiveness is important, sustained confidence depends on service quality, technical support, and long-term relationships.