What sense did j.c. penney pull up the anchor

Reference no: EM131020726

An article in the New York Times about J.C. Penney's pricing strategy under former CEO Ron Johnson observes: "Penney had pulled up the anchor, only to see many of its customers sail away."

a. In behavioral economics, what is an "anchor"?

b. In what sense did J.C. Penney "pull up the anchor"?

c. Why did Penney follow this strategy and what was the result?

Reference no: EM131020726

Questions Cloud

Determining the level of soft drinks to consume : Consider the market for soft drinks. Suppose recent studies show that consumption of soft drinks results in significant health costs to society due to the ingestion of high levels of high fructose corn syrup. Currently consumers of soft drinks do ..

What is the yield to maturity of this bond : A Japanese company has a bond outstanding that sells for 86 percent of its ¥100,000 par value. The bond has a coupon rate of 4.5 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

Consider purchasing a new wood saw that costs : Consider purchasing a new wood saw that costs $40,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be ..

How historical analysis informs the context of policy : Identify a challenge or area of improvement within your chosen area - write and present on a solution to the challenge or area of improvement from both a tactical and administrative perspective.

What sense did j.c. penney pull up the anchor : An article in the New York Times about J.C. Penney's pricing strategy under former CEO Ron Johnson observes: "Penney had pulled up the anchor, only to see many of its customers sail away." In behavioral economics, what is an "anchor"?

Find the range of value of the gain for the system : Using the bilinear transformation and Routh's Stability Criterion find the range of value of the gain for the system remains stable.

What insights from behavioral economics : The magazine decided to rely on insights from behavioral economics to try to increase the number of people choosing the $125 subscriptions. It began offering the following three options: $56 per year for an online-only subscription and $125 print ..

Which you would find each of the items listed below : Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are:

Why would these consumers choose a monthly contract : Data from health clubs show that members who choose a contract with a flat monthly fee of more than $70 attend, on average, 4.8 times per month. They pay a price per expected visit of more than $14, even though a $10-per-visit fee is also availabl..

User Account

All Pages