While it’s natural and necessary for many Americans to cinch the money belt during these tough times, many marketers and economists wonder if their frugal ways will stay with them even as the economic tide turns.
Trends that are expected to stick around include:
- Saving and spending more responsibly
- Borrowing only when absolutely necessary
- “Trading down” to store brands and less expensive brands
How companies are responding:
- Lowering prices (Home Depot, for example, cut prices 5 to 50 percent, and says those cuts are permanent)
- Offer a greater variety of products at varying price points
- Giving money-based reasons to “buy environmental”
- Deciphering what consumers “want” and what they “need,” and marketing accordingly
In the end, say market researchers, the liklihood of a consumer keeping their spendthrift ways will depend on how hard they were impacted by the recession.
Source:
Advertising Age: Marketers Fear Frugality May Just Be Here To Stay
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