Another concept that Stephens talks about is how sometimes honesty is not always the best policy for retailers. This was especially the case for JcPenny’s CEO Ron Johnson, who decided to get rid of the old pricing structure which inflated prices so that later on they could be marked down to market value, thus tricking the consumer into thinking that they had gotten a steal when they really just paid for what the product was actually worth (Stephens, 132). Instead, Johnson opted for “three-tiered pricing structure of everyday low prices combined with fewer more honest promotions” (Stephens, 133). Customers revolted and started shopping elsewhere. In this case customers would rather “buy something on sale or with a coupon – even if they know
