1.
Good- value pricing
By introducing the ‘fair and square’ strategy, JCPenney went from his traditional strategy to good- value pricing. The company started to lower a lot of his prices, and only have sales on certain occasions. It started selling his products for a good price/ quality ratio. It actually didn’t work out that well. The sales and the value of shares dropped dramatically, and the company is now facing a serious issue of surviving.
2.
From customer value- based pricing, to good- value pricing.
Good value- based pricing;
The company first assesses customer needs and value perceptions. It then sets its target price based on customer’s perceptions of value. The targeted value and price drive decisions about what costs can be incurred and the resulting product design. As result, pricing begins with analyzing consumer needs and value perceptions, and the…show more content… The products are always on sale, the difference however is that it is a basic product at a normal price. A big share of JCPenney's products are not for sale for its actual value but are priced below their actual value. Other retailers cannot compete with JCPenney's prices even though their products are the exact same brand and quality. The role of place regarding Fair and Square pricing is the company's approach of making its product accessible for its potential customers. This includes the store its layout, living up to their standards and above all improve the level of customer satisfaction. JCPenney's CEO in that time, Ron Johnson wanted to create a place where customers could 'hang out', like in the Apple stores. The role of promotion regarding Fair and Square pricing is the huge amount of promotions and advertisements. It is mainly about pricing, discount coupons and sale promotions at JCPenney's, this is the approach they used to use regarding pricing