I read an interesting article in The New York Times yesterday. It reports that most consumers, when shopping, seem to know the right price for things. To the surprise of many in the business world, consumers successfully resist efforts by retailers to get them to pay more than that price.
Most shoppers have an instinct for when an item is overpriced. When we feel that way, we hold off on buying until the price is reduced by discounts, often steep ones. This reality contradicts a sexist notion held by many businessmen that shoppers -- i.e., women -- are easily subject to commercial manipulation. Apparently, we are not.
“The customer knows the right price,” said the chief executive of J.C.Penney, Ron Johnson. “We can raise the price all we want; she’s only going to pay the right price. And why is that? Because she’s an expert.”
My favorite line in the article is a quotation from one man who has studied this subject. He begrudgingly gives credit to shoppers, saying “They’re like mathletes with credit cards.”
Do you have a sense of what something should cost? Will you pay more?