You have made my point.
Perhaps I misunderstood your original statements. You asked who would willingly “give back money” by lowering their price, and I said that strategy might net them more profit if they and their competitors were selling identical or interchangeable products (the definition of “product” to include the buying experience).
I thought your case in point of K-Mart, Macy’s etc., to be flawed and I pointed out why. They aren’t selling the same “product”. What were you trying to say that I missed?