A widespread assumption is that customers, interested in convenience, do not want to haggle over the price. That’s why so many people find buying a car so challenging. In response, many retailers are adopting a straightforward pricing plan, without coupons or promotions. Unfortunately, they seem to be finding that customers are more happy to have a bargaining strategy in their stores.
JCPenney’s recent announcement that it would offer “fair and square pricing,” issued through an extensive advertising campaign, reflects its attempt to revamp its image among consumers. It also hopes that by issuing straightforward prices, it can prevent or reverse the trend in which shoppers always wait for a sale before they buy.
SteinMart similarly is cutting back on the number of coupons it offers, by 50 percent, while also lowering its regular prices. The Mango chain is simply dropping all prices by 20 percent. And both American Eagle Outfitters and Urban Outfitters are overhauling their pricing systems to get away from the glut of promotions they had been running.
Yet these retailers might want to take a look back at the history of their industry. When several years ago, Macy’s decided to slash the number of coupons it offered, customers revolted. Angered by the disappearance of their coveted clearance promotions, customers demanded their return, and within six months, Macy’s relented. The same reaction might be in the works for these current price cutters. On JCPenney’s Facebook page, one fan recently lamented, “I really, really miss my coupons.”
Discussion Questions
1. Why might customers prefer straightforward pricing in one situation but like coupons and promotions in another?
Stephanie Clifford, “Knowing Cost, the Customer Sets the Price,” The New York Times, March 27, 2012.
Grewal Levy Marketing News 
Customers may prefer straightforward pricing in situations where they know they are getting the best deal. Customers are always looking for the lowest prices and if they can trust that they places they are shopping guarantee these lowest prices, they may just prefer straightforward pricing because it would be too much of a hassle to wait for coupons. They may also prefer straightforward pricing for products that are in high demand because waiting for a coupon may allow enough time for the product to sell out. These customers may like promotions and coupons when they are at stores they may be less familiar with or stores they figure they can buy products at any time instead of right away. If they don’t need to product within the next couple of days, they might as well wait until there is a coupon available or a promotion.