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I agree with Petro's thoughts that JCPenney needs to listen to the customers. Apple is a different "breed" in a way because we as consumers don't know what we want in technology until we see it - I would have never been able to think I wanted a device such as the iPod or iPad until it was introduced. Now, I can't envision my life without them! JCPenney's "suburban house-wife consumers" need practical and versatile items. JCPenney's St. John's Bay brand was a $1 billion brand and they need to capitalize on their strengths - not completely take it out. They need to insert new and exciting items such as Joe Fresh but keep the elements that make their company successful...and carefully change "the right 20%." Have you all shopped the new brands at JCPenney and/or did you like the older/familiar brands we know and associate with the company?

I agree with Kara, JCPenny does need to listen to what the customers want -- not what they think the customers want. There was a great point made in the article that they had gotten rid of St.Johns Bay apparel line, which is a line some of their customers were loyal and kept coming back to JCP. This article is a great example as Prof King said "the right 20% change." Unfortunately, in recent years JCP has seemed to change the wrong 20% rather than the right 20% which is why they were doing so poorly. I do not think that Ron Johnson took into account that JCP is a completely different industry over Apple. I think when changing a brand a lot of factors come in to play and as stated in the article to target toward current customers and/or new ones is a decision the company has to make.

Well put ladies. As Kara mentioned, Apple is a one of a kind company... for now at least. Until specialized firms like Apple can successfully replicate the ability to predict market demand, it is unnecessary to take such risks, as JCPenny did with the removal of core brands, to boost sales. Although it is encouraged for firms to think outside the box in todays modern world, in order to grasp the attention of consumers along side multiple other stimulants, it is essential that firms do so in a cautious manner. This is a perfect example of the importance of "the right 20% change". Although it is unfortunate that JCPenny had to endure this experience, it has developed a significant message/ take away for the rest of the industry to learn from. It will take a lot for JCP to revitalize its image with lost customers, but I feel their history of strong customer service and attractive product lines will encourage benefit of the doubt in consumers minds. It is great that they are trying to reach new consumer markets, but JCP must not forget about those who got them to where they are today. They need to nourish previous relationships, while continuing to cultivate seeds within the upcoming consumers(younger families, young adults) to stretch their loyalty to JCP into the future.

I think all four of you nailed it! The last sentence of that article states "this will involve a lot of listening," and that is exactly what JCP needs to do. They need to listen to their most important voice, the consumer -- what do they want, not "what JCP thinks the consumer should want." Overall, as we have learned, you must start with the customer and build from there--this is what JCP needs to do to start moving in the right direction.

This was an interesting article that clearly showed that marketing plans are not one size fits all. What works for one company may not work for another, and JCP is an excellent example of a company that needed to do more research on their customers before implementing a plan. I was very surprised how little they did to look into what the customers were looking for. The troubles JCP is now experience is a warning to other companies to take a closer look at the consumer when creating new marketing strategies.

Great article Lina!! I am sure that this is a strategy commonly used by retailers, but it is NOT one that should be used by JCP. This company is already in a lot of hot water and financial trouble as it is, it would be a safer bet to play it safe than to have their tactics exposed and eliminate the already shrinking customer-base that J.C. Penny has.

Of course, keep in mind, price anchoring has been standard practice in business for a long time. Not only do we see this in the retail industry, but also in other industries like healthcare, higher education, and auto sales. This is just the nature of capitalism; it;s a political economy that aims to maximize profits at minimal cost. The reasoning behind price anchoring is that original prices are the starting point for negotiations. Although this perspective is a useful tool for businesses trying to make an easy profit off of customers who think they're saving money, it is nonetheless insulting to those customers who have little to no leverage or agency to negotiate prices. The average consumer does not realize that this type of pricing occurs because most hold tight to the belief that businesses always have their best interest at heart; little do they know that businesses are interested in one thing and one thing only- the bottom line. So, although price anchoring may not be a GOOD strategy (because it not only insults the customer by taking advantage of them, but also strips them of their ability to make informed decisions) it is a strategy that works for all intended purposes. The reason it works is because everybody would like to hear that they have saved money. I see this anytime I go shopping with my mom; if there is a sale she's sure to be there because, to her at least, "any sale is a good sale."

The idea of placing "Disney Stores" within JCP stores is interesting. I am a little confused -- I thought JCP was aiming to bring back old customers and people our age? A Disney Store would bring in younger ages and parents. It is pretty cool knowing you can go to JCP and purchase Disney Products. This is a great idea but this will bring in a totally different market yet again. As long as they stick with this strategy it could be successful. On the other hand, if this doesn't work -- changing strategy yet again could be risky.

I think JCPenney selling Disney merchandise is a great concept, and reminds me alot of the mini Finish Line sections in Macy's department stores. Children are going to lure their parents into buying Disney items when they go shopping because they will recognize their favorite animated characters and want merchandise to call their own. Also for the holiday season, parents will be able to buy official Disney products at their most convenient JCPenney location instead of waiting for online shipments to arrive or finding their nearest Disney store. It's seems like a great thing for parents who are in a pinch for a gift or birthday party present for their child's friend to get Disney items at JCP because everybody knows and loves the characters/movies. Finish Line's mini stores seem to be successful, and I think the holiday shopping season is a great time to see if these mini Disney store sections will succeed. Maybe it's steps like this launch that can bring JCPenney back to being prominent in customer's minds.

Though I am a bit confused by JCP's new strategy to partner with Disney, I do think it could be a successful move. Their target market has not typically been a younger crowd, so this will be a good way to get children and their parents into the store.

I agree with Sarah and Kara. I am suprised that the two are partnering, but I think it will be a good idea to help bring JCP come out of this little rut they are in.

I wonder if this trend will ever change. JCP thought we were smart enough to know the difference but apparently we weren't. It seems that JCP was a little before its time by thinking in this way. Our subconscious feeds off of impulse buys because its instant gratification. Hopefully I can resist next time I'm out running errands.

All five reasons are so true and I have probably had at least one impulse buy for every reason, but I think the biggest reason for those impulse buys are because of those discounts and sales. Who doesn't love to save money? Now that I have read this though, I am going to try to be more cautious the next time I'm out shopping (hopefully there aren't too many good sales going on).

I thought this was really interesting especially because it came from psychology today. However, number two was not what I expected. I am usually accustomed to people brining up buyers remorse, rarely do they ever say they never regretted it. Maybe that is just with more expensive purchases and not on sale items? All of these articles on pricing have made me more aware of how stores are manipulating me into buying, and I must say most times it works!

Yes, I agree with Sarah. I also bought a lot of those products, which I will never use again, but I think that behavior is not as unconscious as the article may want us to believe. Most of the time I am pretty aware of the fact that I am buying stuff because I perceive it as a good deal, even though I also know I won't make too much use of it.

This article was really great -- I impulse buy for all five reasons and a place I impulse buy from ALL the time Groupon. I agree with Angelo I buy products and sometimes when I am buying them the thought crosses my mind if I will ever use it again does not matter. I usually buy things because I think it is a good deal because lets face it we love to buy things -- especially when they are discounted or on sale!

I also agree with the sales aspect being one of the biggest reason for impulse purchases. In two different jobs I have worked we had What we called PWPs (purchase with purchase). Once a customer made I purchase I was able to offer them another item at a discounted price. I would always say, "with your purchase today you qualify to get -said item- for 50% (or other discount) off!" Granted, this sale usually went on for three months or so, but using the word 'today' tended to convince customers they needed this item. So e customers would think out loud and reason why they should go ahead and buy it which was always interesting for me to listen to. As a sales person, I would remind them that the sale wouldn't last for long and it was a great deal so they could get it now and not have to come back hoping the sale was still going or that supplies were still available. Most of them never would have bought the item had they seen it on the shelf, but hearing the discount associated with their purchase today they felt obligated to buy, and almost always did.

Target is my downfall for impulse buying! I always stop by the dollar bin section (especially when it is 50-70% off) then I feel like I need everything! Which is terrible because I can personally go to almost half the things I've purchased in my home that I have not used. The other day at Michaels, I witnessed a lady purchasing some scrapbook paper and after having to wait for a few customers ahead of her, she purchased a small piece of Hershey chocolate sitting in a bin for 59 cents. I couldn't help but think about the marketing and item placement that Michaels thinks about in their store layout because they would not have sold that extra item had it not been convenient and inexpensive. The placement of small items helps create more sales - especially by the cash registers - as children and people of all ages may want things they didn't think about when initially going into the store. This was a really interesting article!!!