Is Continued Price Erosion Causing a Cut in Marketing Spend?

This article from marketwatch.com seems to suggest this is so for many CPG companies. However, I would argue that a strong brand is what is necessary to combat the continual downward spiral of price erosion. I once worked on a brand that had the actual nerve to say no to Amazon's request for lower prices. While that meant that Amazon dropped the brand temporarily, it was not long before they were back because they realized what their customers wanted was the branded product. Not just the least expensive one. What do you think?