Pricing Strategy Essay
Posted by Ge Gao at Saturday, July 7, 2012 1:49:33 PM CDT 1. Are you influenced by coupons and promotions? Does it change your buying patterns? How does it influence your perception of value? Yes, I’m influenced by coupons and promotions. It does change my buying patterns. I would buy some products for the future or products I don’t need. It makes me feel that if I spend time on looking for coupons and promotions, I can get those products at a lower price. I think I can pay less to get the same value, or get a higher value than what I pay by coupons and promotions. 2. Ron Johnson had a successful track record at Target and Apple. Are the questions around his new pricing strategy for Penney premature? JC Penney is …show more content…
Once Mr. Johnson completes his long-term vision of making JCP an innovative customer service retailer, they will have the differentiation in shopping experience to make this Fair and Square pricing strategy a success. But given its current commodity like product mix and very price-sensitive customer base, these price changes seem premature. 3. Compare Penney’s new strategy to that of Wal-Mart. How are they similar and how are they different? Which do you perceive as offering the best consumer value?
Penny’t s pricing strategy is called “Fair and Square” pricing. It involves permanently marking down their merchandise by at least 40%, so there will no longer be the deep discount sales that their customers have come to expect. They will now offer only three prices – Every day Prices, Month Long Value Prices, and Best Prices. The intention is to keep things simple and offer customers more predictable pricing.
Wal-Mart’2 s pricing strategy is “ everyday low prices”. It focused on providing customer’s steep discounts.
I think Wal-Mart is offering the best consumer value. Because prices changes every day and Wal-Mart is offering all kinds of products which Penny is not. 4. “ For many shoppers, Johnson’s new pricing strategy for Penney has just taken the