Please read this rather good entry discussing the recent performance downturn for JC Penney. Dr. Calkins attributes the downturn to Penney's decision earlier this year to go from deep discounting to daily low prices. Essentially, the difference would be (borrowing an example from the comments at the original blog post):
Old JCP - Buy this $50 shirt for $20, sale ends Tuesday
New JCP - Buy this shirt for $20
What's changed? A lot actually. The shirt hasn't changed, but the perceived value of the good has changed. For the MBA students, this relates directly to our discussion yesterday about the psychological signalling of price. An everyday low price sometimes signals cheap, where a promotionally low price signals DEAL!
What do you think?
Showing posts with label discount. Show all posts
Showing posts with label discount. Show all posts
Friday, June 8, 2012
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