BusinessWeek recently highlighted consumer-buying habits during economic downturns based on data from GfK Roper Consulting, which studied purchasing behavior through periodic surveys since 1973, and most recently in February. Here are some of the things they noted:
Cable, Satellite TV. Today, consumers are willing to pay for services in which they find value—but these days, many aren’t finding it in cable and satellite TV services. About 40-percent of those surveyed said they would consider canceling their cable-TV or satellite-TV service.
Cash vs. Credit. Paying cash for everything—instead of using credit—is gaining popularity. More than 80-percent of consumers surveyed say they think it's a smart idea to pay for everything with cash, debit cards, and checks.
Name Brands. Brand names aren’t as important as they once were. In 1988, about 40 percent of consumers surveyed said brand names were "different, better, and worth paying more for." By 2006, that percentage had dropped to 29 percent.
Living Standards. Recessions don’t seem to affect the purchase of products deemed necessary to maintain a certain standard of living—even if those products used to be considered a luxury. For example, in 1973, only 13 percent of consumers surveyed said they considered in-car air-conditioning essential, while only 10 percent said they had to have a dishwasher. By 2001, those numbers had grown to 57 percent for AC in the car, and 32 percent for dishwashers.
For more on consumer-buying habits, click here.
Source:
BusinessWeek: Consumer Spending: What's In, What's Out
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