There's a marketing theory (can't remember where I read it, as it was years ago now) which says pursuing 'premium' (whether through image or functionality) is ultimately a self defeating strategy as you make yourself vulnerable to attack from below: a competitor offers something half as good (but still more than good enough) for half the price, and your customer base walks.
In a recession, this is an ever more real threat, which Tom's latest cartoon captures rather well...
