Suppose JCPenney and Macy’s were both vying to carry an exclusive line of Heidi

Question

Suppose JCPenney and Macy’s were both vying to carry an exclusive line of Heidi Klum-designed outerwear. This would be an example of:

It is common knowledge among consumers and retailers alike that apparel prices tend to be marked up artificially. Years of coupons and promotions have trained customers to wait for price reductions, only shopping at department stores when special sales are available. During the Great Recession, consumer confidence dropped and spending slowed dramatically. As the economy has improved, department stores such as Macy's and JCPenney have begun looking for ways to increase customer spending. Many department stores have once again turned to steep sales and special coupons, further encouraging the cycle of regular (lukewarm) business and sale-time frenzy.
Taking a different route, JCPenney moved to reduce the artificial markup so common to department store apparel. Borrowing Walmart's long-time "everyday low prices" strategy, JCPenney hoped to spur demand and reduce off-sale shopper apathy with basic contemporary apparel, promotions such as "Best Price Fridays," and special month-long values. Customers accustomed to receiving a coupon before shopping did not respond well to the new retail strategy, however, and JCPenney incurred substantial losses. The company launched an informative marketing campaign extolling the great values available without needing coupons or special sales, but the public remained unmoved. In April 2013, JCPenney ousted the man behind the change, Ron Johnson, as CEO and promised a return to coupon-based sales.

Dana Mattioli, "Penney to Tweak Message, but Not Its Strategy," Wall Street Journal, June 19, 2012, http://online.wsj.com/article/SB10001524052702303703004577476830407027186.html (Accessed March 26, 2013).
How could JCPenney have used shopper marketing to avoid alienating its customers and losing sales?

E. It could have done all of these.

Explanation / Answer

Suppose JC Penney and Macy’s were both vying to carry an exclusive line of Heidi Klum-designed outerwear. This would be an example of:

B. Horizontal conflict.

In this case JC Penney and Macy’s have a horizontal channel conflict since both are vying for the same exclusive goods at the same level of distribution which could have led to disagreements among them.

How could JCPenney have used shopper marketing to avoid alienating its customers and losing sales?

E. It could have done all of these.

all these steps could have been taken to avoid alienating the customers. It could not gauge the customers interests, it lost its loyal customers, its management was confused about the brand positioning of the store.

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