They lost homes and survived floodwaters, escaping in some cases with barely the shirts on their backs.
But Gulf Coast residents who still have money to spend after Hurricane Katrina will get a deal -- of sorts -- if they can get to one of Gap Inc.'s stores by Oct. 31.
The San Francisco-based company said last week that it would cut 15% off the price of all its merchandise for shoppers from Louisiana, Alabama or Mississippi. And the parent of 3,000 Gap, Old Navy and Banana Republic stores isn't the only one making such an offer.
Retailers throughout the industry are reaching out to the victims of America's latest disaster. The companies are giving cash to relief efforts, funneling supplies to those in need and offering discounts to survivors who shop in their stores -- all while aiding the retailers' own displaced employees.
As they juggle all this, businesses must avoid the appearance of trying to benefit from a tragedy, retail and marketing experts say.
Should they shoot off news releases when they make contributions? Or should they give quietly, without calling attention to themselves, even as competitors trumpet their own generosity? And how much should they give?
The subtleties of public relations play a key role in making such decisions, said Kay Palan, associate professor of marketing at Iowa State University.
"There's a fine balance" between giving in a visible way and not appearing to take advantage of a crisis, she said. "If you're a major corporation and the public doesn't see you step forward to do something in this kind of disaster, it has the potential to negatively affect the image and reputation of that company."
If consumers believe that a business is giving in the right spirit, that can buff a company's image and even win it new customers, marketing experts say. But if they are suspicious of the motives, or think there is little value in what is being offered, the effort can backfire.
H. Shanker Krishnan, professor of marketing at Indiana University's Kelley School of Business, said customers were sensitive to any hint of profiteering. "Obviously, companies are trying to make money," he said, "but at the same time ... if the discount is so small, people see through that."
Krishnan and some other observers were underwhelmed by the price cut Gap offered. Retailers generally can slice as much as 60% -- sometimes more, depending on who makes the clothes -- from the price of a garment and still make a profit, analysts say.
