For J.C. Penney, a Tough Lesson in Listening, to Whom and Shopper Psychology | Innovation & Institutions, Will it Blend? | Scoop.it
Because of the quirks of human psychology, simplifying pricing isn’t so simple. J.C. Penney learned that lesson the hard way.


...consumers are conditioned to wait for deals and sales, partly because they do not have a good sense of how much an item should be worth to them and need cues to figure that out.


Just having a generically fair or low price, as Penney did, said Alexander Chernev, a marketing professor at the Kellogg School of Management at Northwestern University, assumes that consumers have some context for how much items should cost. But they don’t.




Via Anita