The tricky science of simplifying pricing

04/14/2013 | New York Times (tiered subscription model), The

J.C. Penney's everyday low-pricing experiment backfired, illustrating that it's not so easy to simplify pricing strategies when consumers want the thrill of believing they've gotten a deal, experts say. Without a higher price for comparison, consumers often lack the context to know whether the price is a fair one, Northwestern University marketing professor Alexander Chernev said.

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