Seriously, if Rob wants a consumer psych issue...

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Seriously, if Rob wants a consumer psych issue...

Postby DRiP_Guy » 03/19/14 at 16:28:45

...this is the REAL issue that he could easily ride to fame and fortune on, AND also satisfy his need to be seen as a white knight/do-gooder, at the same time.

Of course, Rob is too stupid and too crazy to let go of the current dead hobby-horse (hee hee I like that double metaphor!) that he is currently beating...

The real 'behaviorist' gold is in these here hills:

J.C. Penney's trouble with sale pricing started with CEO Ron Johnson, who in 2012 pledged to eliminate "fake prices" -- inflated prices used throughout the retail industry to convince customers they're getting a great deal. Johnson eradicated coupons, sales and discounts at the 112-year-old retailer.

Coupon-crazed shoppers revolted, with devastating consequences for J.C. Penney. Sales plummeted by an astonishing $4.3 billion in the first year of Johnson's turnaround plan. "Coupons were a drug," the CEO admitted on a 2012 conference call with investors and analysts. "They really drove traffic."

Johnson was fired in the spring of 2013. But even before his ouster, J.C. Penney began jacking up its "everyday prices," then discounting them to create the perception that customers were nabbing a deal, according to a report from Reuters.

When Mike Ullman retook the reins as CEO in April 2013, mass sales and coupons returned to the department store in a forceful attempt to regain the bargain-hunters.

Consumer groups investigated the discounts, releasing numerous examples of sale prices that were actually higher than the original price tags. Local news stations probed stores through hidden-camera investigations. Time declared J.C. Penney's prices "faker than ever."

A regional executive said customers don't understand that they're often "overpaying" for much of the merchandise, even though sales make prices appear cheaper than before. "Guess that's retail," he mused.

Marking up prices only to mark them back down as a promotion is a fairly universal practice, according to Robin Lewis, co-author of The New Rules of Retail and CEO of retail industry newsletter The Robin Report.

Lewis stressed that current CEO Ullman -- who also held the reins at J.C. Penney before Johnson's tenure -- had no choice but to return to the old ways of discounting, since the idea has been used for decades to great effect...

J.C. Penney characterized revelations on NBC that the company drastically hiked prices and then slashed them in order to tout a "sale" as "trade secret, proprietary and confidential business information." ... lp00000592
Robert Michael "Hocus" Bennett, October 22, 2010: "I have been living off my savings for 10 years"
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