Are consumers really unaware of the cost of things - especially in today's economic climate? Will putting the image of the latest big name in cartoon characters on merchandise really increase sales? In his two part series, Cutting prices in a recession? No way!, Alan Radmall attests to both. Refering to research published in the Harvard Business Review, Radmall says that manufacturers and retailers can often push their prices higher than they think and still make the sale, as consumers depend on retailers to tell them what a good price is. And as horribly gullible as it makes consumers seem, what other choice is there? Pricing comparisons can only be made between stores, and if there is little to no difference between the stores' pricing points, consumers just have to accept the stated figure. The only real choice they have is whether to buy the product or not; and in the case of basic necessities, most will pay now and not bother to ask questions later. This, of course, leaves the playing field wide open for price-fixing scams by manufacturing cartels, as our recent history has shown us. As for cartoon-branded merchandise - it just goes to show what a little famous imagery can do for sales, especially when kids are concerned. All in all, it just goes to show, consumers will pay anything for what they want.

Shan Radcliffe, Retail editor retailnews@bizcommunity.com Responses to this column welcomed in our new online editor's column archive. Image courtesy of FreeDigitalPhotos.net.