Local News

News > Local News > Retailers Using "Go To" Concept To Raise Prices

Retailers Using "Go To" Concept To Raise Prices

Retailers use an old trick that basically always works with consumers when it comes to raising prices. 

Purdue University Retail Expert Dr. Richard Feinberg says it's called the "Just Noticeable Difference." Feinberg says that refers to the point where consumers barely notice higher product prices and perhaps smaller package sizes.  In short, it's how companies can maintain or boost profits and/or decrease overhead without making consumers angry. 

Feinberg says Starbucks is the latest case in point.  The coffee chain raised its prices ever-so-slightly today.  Starbucks is blaming higher overhead costs.  Prices for cups of coffee have increased from five to 20 cents, depending on the coffee size. 

Feinberg says Starbucks, Apple and McDonald's among others are very strong brands that have made their way into the consciousness of consumers.  He says consumers associate their favorite brands with convenience and pleasure and often don't care when they detect something just below a "just noticeable difference" in prices. 

Local News

Investigators are looking into the death of a person who was hit by a train in Lawrence on Saturday night. Police...
Former Indianapolis Motor Speedway president Buddy McAtee is among the racing figures buried at Crown Hill...
(WIBC.com photo: Eric Berman) Indianapolis has taken its annual pause in the runup to the 500 to remember America'...
A consumer watchdog is calling a national settlement with the three major credit bureaus a victory for consumers...
Gas prices are trending upward, but Gasbuddy.com says they remain about a dollar lower than this time last year...