Behavioral economics helps explain why customers ________ at J.C.Penney.
A)favored the policy of everyday low prices and not sales and coupons
B)favored sales and coupons and not the policy of everyday low prices
C)were equally happy with sales and coupons and the policy of everyday low prices
D)responded negatively to both sales and coupons and the policy of everyday low prices

Question

Quizplus · Accepted Answer

Behavioral economics suggests that customers are more likely to respond positively to the perception of getting a deal or a discount through sales and coupons, rather than a flat everyday low price. This is because customers value the sense of getting a bargain or deal more than simply paying a lower price overall. Therefore, the shift away from sales and coupons towards everyday low prices likely resulted in customers feeling like they were not getting a good deal, leading to their negative response towards J.C.Penney's new strategy.

Behavioral Economics Helps Explain Why Customers ________ at J