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JC Penney just went through a complete meltdown because the CEO forced out honest pricing instead of the inflate-prices-and-have-sales that was their SOP for mo
by Gratsby 11y ago
JC Penney just went through a complete meltdown because the CEO forced out honest pricing instead of the inflate-prices-and-have-sales that was their SOP for more than a generation.
Turns out their customer base really liked the sense of saving money, even though the straight forward pricing was actually saving them more money.
This kind of a thing feels unethical - especially to those with an analytical mindset like a lot of programmers. But the proof is in the pudding. People (at least older people in the U.S.) prefer bargain shopping to straightforward pricing.
Culturally, there are differences like this around the world. In Japan, they cannot grasp subscription models very well. In many places in the middle east, negotiation is just a part of shopping. In the U.S. we really like sales. In Russia, you get in line and then ask the people around you what it is that you are buying (granted, haven't been there since the 80s).
- balls187 11y ago> This kind of a thing feels unethical - especially to those with an analytical mindset like a lot of programmers. But the proof is in the pudding. People (at least older people in the U.S.) prefer bargain shopping to straightforward pricing. People are irrational with money. These types of unethical practices just capitalize on that fact. Getting more for less, is intrinsic to our species, regardless of being of analytical mind or not.
- unsettledtck 11y agoI think the unethical aspect of arbitrary pricing that goes beyond daily fluctuations really came out in this project. I actually was not aware of the situation with JC Penny, but really fascinating glimpse into their consumer mindset. Probably comparable to Sam's Club, since even I expected a ton of lower prices from them based on membership. I like your cultural analysis!