Consumers are getting more savvy and more suspicious according to a study published in the Journal of Consumer Psychology.

The Eddie Haskell approach of flattery doesn’t appeal to consumers and is more likely to lose the sale than seal it. Consumers are wary of salespeople who compliment them and view it as an attempt at manipulation.

An experiment in sales and flattery found that consumers didn’t trust the admiring comments of the salesperson, even if they came after the sale was completed. The lesson to salespeople might be “less is more” when it comes to flattering the customer.

Sales Pitches Turn Off Consumers, Study Finds

Kmart Corporation will reimburse dormancy fees charged on gift cards as part of its settlement with the FTC. The FTC filed a complaint that charges Kmart with deceptive practices in the advertising and selling of the cards.

According to the FTC, Kmart charged a dormancy fee of $2.10 for each month the card was not used after 24 months. If not used for two years, the dormancy fees would be $50.40. Kmart also advertised that the gift cards would never expire, but dormancy fees could quickly eat up the balance of a card and in the case of those with a value under $50.40, the card could become worthless in two years if not used. Kmart stopped charging dormancy fees after May 1, 2006.

The proposed settlement requires Kmart to reimburse the dormancy fees for consumers who provide an affected gift card’s number, a mailing address, and a telephone number. Kmart will publicize the refund program on its Web site, including a toll-free number, e-mail address, and a postal address for eligible consumers to contact Kmart to seek a refund.

The FTC has established a Consumer Hotline at (202) 326-3569 for consumers who have questions about the refund program. The Hotline will be updated as necessary.

One of the fastest growing companies in the world, Starbucks is moving into the music market in a big way. Having begun selling CDs after realizing that their customers were asking about the music playing in the background, the company now plans a new series of stores concentrating on CD sales first and coffee as a sideline. There is even a strong possibility that they will start releasing music under their own label.

Since Starbucks has always been about ambience as much as coffee, this makes a lot of sense. Both coffee and music are mood setters. But perhaps the most interesting thing about their diversification is that it came through an understanding of their customers’ needs.

That could be a lesson for anyone involved in running a business.

I can remember a time not so long ago, that I would only buy a few dollars worth of gas at a time, because the price was likely to go down in a few days and it would be foolish to fill my tank with more expensive gasoline now rather than wait for a price drop.

Well, prices are headed up and up and, it seems, up. The price of a gallon of regular is up an average of 21 cents and prices are expected to increase through March.

Rising gas prices may make us groan at the pump as we watch the numbers tick off but because the increase happens over a period of time, we may not immediately notice the impact they have on our budget.

But that is the way inflation and rising prices work. Last year’s budget may not reflect your actual expenditures this year. Because we tend to include increases in income - probably because it makes us feel better about spending - and less likely to include small increases that over time take more and more of that income, our budgets can be inaccurate if not kept up to date.

Take time out, say every three months, to go over your projected expenditures and bills and adjust your budget where necessary. Only by having an accurate financial picture today can you plan and save for your future.