Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How JCPenney Removed Its Price Anchor and Lost Customers
In 2012, JCPenney's new CEO Ron Johnson abolished sales and coupons in favor of 'fair and square' everyday low pricing. The result: a 25% sales drop and a failed turnaround. This episode unpacks why removing the high price anchor made customers stop buying, and what that teaches us about the psychology of reference prices. Plus, why a simple loyalty program update might have saved the strategy.
#JCPenney #RonJohnson #PriceAnchoring #RetailPricing #FairAndSquare #AnchoringEffect #ConsumerPsychology #PricingStrategy #Marketing #BehavioralEconomics #BrickAndMortar #RetailFailures…
The skinny
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