burgi - 10:17 pm on Jun 20, 2009 (gmt 0) However, this strategy might not work so well if your brand is not known.
Interesting thing I saw about price guarantees is that several major online retailes (retailers who advertise on TV) offer a price match guarantee, but definitely don't have the lowest prices online.
I think that it's a great way to price discriminate, while still building trust with your customers. The people who are very price sensitive will go through the trouble to find a better deal and then request a partial refund, while all other customers feel like they got a great deal.
As was said above, just test it to see what happens!
However, this strategy might not work so well if your brand is not known.