Case Analysis Marketing and the Economy Colgate Palmolive As the uncertain economy has made people more aware of their spending, many companies have slashed prices on their products and services. Still other companies successfully held prices steady, selling as much or more than they did before the economic bottom fell out. But Colgate-Palmolive is one of the fortunate few that has actually been able to increase prices during this more frugal era and reap benefits from doing so. Think about ithow grim would your budget have to get before you'd stop brushing your teeth or taking a shower? Economic conditions have relatively little impact on people's basic personal care habits, and brand preferences are deeply ingrained for these necessities. Based on an accurate evaluation of customer buying habits, Colgate-Palmolive raised prices by an average of 7.5 percent without experiencing any dip in sales. Higher prices and stable volumes equalcha-chinghigher profits. Indeed, Colgate-Palmolive saw its profits rise by 20 percent in 2008 and 17 percent in 2009, during the heart of the recent recession. It seems as though looking and smelling clean might just be recession-proof concepts. Case Analysis Question Does the success of Colgate-Palmolive's price increases have anything to do with the economy? In the longer term, as the economy recovers, what should Colgate-Palmolive anticipate in the wake of its price increases