“Isn’t this the company that eliminated store sales, lowered prices, and then said customers will now be flowing through the doors becasue of this new pricing policy?”
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I’d be willing to bet, Wal*mart’s sales during the time period in markets they compete head-to-head in, almost exactly matched the J C Penney change, but in reverse.
The strategy seems to be marketing groupthink. That they can craft some sort of perceived price reality, and people will believe them.
Do they think people don’t have eyes? Or the internet, on which to see what competitors’ prices are?
It's called "price image" and is a loose conglomeration of the following: store decor/style/lighting, prices on most popular goods, level of the brands selected, and hi/lo vs. EDLP vs. coupon pricing strategies.
Cheers!