Customer Expectation Report, Essay Example

Introduction

JC Penney has experienced a number of critical challenges in recent years in response to a shift in strategy. These changes have led to a significant decline in sales and customer satisfaction. However, the organization remains true to its long-standing reputation to provide excellent value and customer service. From the customer point of view, JC Penney is in a difficult predicament for which its most loyal customer base must remain patient and in support of its new direction. Nonetheless, many questions have been raised regarding the company’s abrupt cultural shift, the failure of this change, and the attempt to return to its former glory. From a supply chain perspective, JC Penney must explore its current options and determine how to best move forward with its tumultuous reputation and uphill battle to restore its glory.

Analysis

JC Penney customers are likely to possess a number of key expectations as patrons of this retailer, including the following: 1) quality products at affordable prices; 2) a large selection of merchandise; 3) a variety of brands to choose from; 4) weekly sales and clearance, including doorbusters; and 5) excellent customer service in all areas. JC Penney customers possess these types of expectations because the retailer has been in existence for many decades. However, recent events have led many customers to question their prior loyalty to the brand due to the appointment of former Apple CEO Ron Johnson (Buffett, 2013). When Johnson entered the picture, he attempted to transform JC Penney into an organization similar to Apple, but customers would not bite, as he removed sales and clearance from the store and instead developed a new price point system (Buffett, 2013). Historically, JC Penney customers have counted on regular sales and clearance in order to find the best bargains for the best possible value, but when these options were no longer available, customers left in droves (Buffett, 2013). It was only when JC Penney recognized that it had failed to entice customers with its new business model that they ousted Johnson and made a strong effort to return to its former model (Buffett, 2013). The customers have begun to return, but a one dramatic shift in business strategy after another is not without its consequences, and time is JC Penney’s only friend in this case in order to cut its losses and increase its sales (Buffett, 2013).

Conclusion

In response to the changes that JC Penney has initiated in recent years, customers have become frustrated with the retailer and its attempts to rebrand itself to compete in an entirely new market. Based upon sales figures, these efforts have failed miserably and continue to create problems for the organization. Many of its most loyal customers have been driven away by these changes. In response to lackluster sales, the business has modified its efforts towards a return to a more successful business model. Although some customers have begun to return to the retailer, it is likely that many appear to be wary of the abrupt changes that have taken place over the past several years. JC Penney has recognized many of its mistakes in transforming its strategy, but they remain in rebuilding mode in order to improve their attractiveness to a larger customer base.

In response to the public’s need for a more traditional business model, JC Penney has responded in a favorable manner and has made an effort to attract old and new customers to the return of value prices, weekly sales, and clearance items. In addition, many stores have established new furniture departments to compete in this area. However, the organization has a long way to go in its efforts to return to a business model and a level of customer satisfaction that will lead to steady and continuous sales growth. JC Penney must learn from its mistakes and return to business practices that are pleasing to its loyal customers. These choices will enable the company to have a greater share of the market and a renewed focus on superior customer services.

References

Buffett, M. (2013). Why did JC Penney stumble so badly under Ron Johnson? It’s culture,                   stupid. Huffington Post, retrieved from http://www.huffingtonpost.com/mary-buffett/why-did-jc-penney-stumble_b_3103698.html