Economy
methods such as credit cards unsecured
loans. According to the research,
consumers have become less comfortable
about the amount of debt they are
shouldering. Indeed, homelessness
charity Sheher estimates that tbere will be
130,000 personal insolvencies this year.
While the research echoes many leading
economists in predicting that the UK will
not experience a recession in the technical
sense (two consecutive quarters of
negative GDP growth), the slowdown will
continue well into 2009, and the economy
is unlikelyto pickup until2010.
In response to this, a bigh proportion
of consumers are set to 'trade down', by
choosing cheaper brands and retailers.
However, the willingness to resort to
shopping at discount retailers varies by
level of anxiety. Eigbty percent of
consumers categorised as 'panicked' are
more likely to trade down, compared with
just 34% of'placid'consumers. Inline
with this, only 33% of placid consumers
say they will eat out less frequently, while
even fewerthink they will stop shopping
for fun and pleasure.
Most consumers are increasingly price
sensitive, with 73% paying more attention
to the price of tbe grocery products they
are buying. The research also found that
70% of consumers are searching the
internet for cheaper prices, choosing
products on the basis of special offers, and
using coupons and vouchers. Pricecomparison
websites are being visited hy
60% of consumers, while 58% are taking
advantage of loyalty cards.
There is no doubt that consumers will
be considerably more focused on price
over the coming 12 months. During the
1991 recession, coupon firm Valassis
£l4tn
amount of personal debt
accrued by UK consumers
73%
of consumers more likely
to pay attention to the
prices of grocery products
70°/c0
of consumers wiil search
the internet for iower
product prices
63%0
of consumers more iikeiy
to switch from usuai brand
to cheaper aiternative
if price increases
reported a 60% rise in the distribution
of coupons and a 17% rise in the volume
of those redeemed, compared with 1990.
Tactical pricing and sales promotion
activity may serve to draw new consumers
to a brand at a time when loyalty is open
to challenge.
Perhaps the single most concerning
result for brands Is the fact that 60% of
consumers say they are going to purchase
less over the coming year. Crucially, the
research suggests that a small increase in
anxiety levels will result in a significant
decline in spending. Certain categories
How marketers can benefit from the recession
will Galgey
Managing director,
Henley Centre HeadlightVision
After 63 consecutive quarters of
economic growth, the current economic
climate ¡s very different from that to
which consumers and businesses have
been accustomed. It is academic as to
whether we enter a recession in the
technical sense of two consecutive
quarters of negative growth. The key
point is that the boom is over - and the
impact of this downturn on consumer
behaviour is already being felt.
Economic slowdowns are inherently
unpredictable, and, crucialiy, no two are
the same. This makes It difficult, and
Extreme shoppers get a thrill out of buying more than they would be able to otherwise because of the savings they obtain from their bargains. Lyz Lenz wanted to test using coupons vs. using a bargain store. She created a shopping list of groceries needed for the week. At the bargain store she spent $103.16 sticking strictly to her list and only buying what the family needed for the week. At the local store using coupons she s...
The company’s pricing strategy is concentrated on anticipating and quickly responding to the changes on customers’ preferences to enhance a better product-line. By doing this so, American Eagle is always doing research about the changes in the economy and customers preferences, dictated by fashion and season. Its goal in this context is to get the correct merchandise due to it must be ordered well in advance of the selling season (p.9). The price of its clothes and accessories varies depending on the item and/or the clothing line that ranges from affordable to a bit expensive. This company also provides coupons. discount codes, and deals that lets the company to attract more customers. For instance, at the end of seasons, when American Eagle
International Monetary Fund (IMF), international economic organization whose purpose is to promote international monetary cooperation to facilitate the expansion of international trade. The IMF operates as a United Nations specialized agency and is a permanent forum for consideration of issues of international payments, in which member nations are encouraged to maintain an orderly pattern of exchange rates and to avoid restrictive exchange practices. The IMF was established along with the International Bank for Reconstruction and Development
New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.
Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
Another important micro trend would be the Consumer. Throughout the process of Marketing, the main emphasis always falls onto the consumers as they are the most important actors in the company’s microenvironment. The entire aim of the marketing process targets the consumers need and aims to forge a sound relationship with them (Kotler et all, 2010). Masters must focus on generating commitment and trust from its consumers. These attributes ultimately result in loyalty, and therefore are a strategic goal and a sure source of profitability in the long run (Miquel, Caplliure, and Adame, 2014). The success of marketing warfare has lessened at the retail level due to the rise of independent consumers. They are not in a state to be “controll...
Do you think the absolute lowest price for an item is most important for many consumers? What percent would you say comparison shop for the lowest price? What implications, if any, do you see from your estimate?
We know in advance that due to the nature of our product, we will have more opportunities to increase our sales in quarters two and three. Our focus this quarter will be to continue building brand equity and driving trial. We estimate 20.5% of our sales will come from this quarter ($5.86m). By the end of the fourth quarter we anticipate on building momentum to kick off our quarterly program in 2017. Total spend for this quarter will be approximately 15% ($1.89m) of our total budget, making it the least amount we will spend for the year. However, we feel with a sole focus on digital from quarter three, we will have grown our online presence and have greater brand awareness in comparison to previous quarters. We will focus our holiday promotion (nov-dec) with Gourmet Selects advertising in connection with Unilever’s “Share a Meal Campaign”. Our consumers will have the opportunity to give back during the holiday season. Gourmet Selects will connect with consumers under this campaign through digital brand content, trade activations and in store promotion. Also during the Holidays our below the line (BTL) visuals will change. We will still run general advertising images in October, but will budget for new online $200k BTL and OOH images for the new campaign. Total non working for this quarter is $60,000, trade activation $400,000 and $150k samples digital $998,000. $5k
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
Consumers make choices every day that affect the economy we live in, and in return these choices impact one’s personal finances. Take for instance, buying clothing at retail establishment that is trending,
Euromonitor International, 2012, “Consumer buying behaviour in the recession: global online survey - executive briefing”, Euromonitor International, Accessed: 23/05/14
The shifting of the consumer’s taste of simple products to high quality branded products is not sudden. It grew out in the middle of the 20th century and the companies selling various products needed a new way to differentiate their products from the others giving it a unique identity.
Neal, C. Quester, P. & Hawkins, D. 2004, Consumer Behaviour: Implications for Marketing Strategy, 4th Edition, McGraw-Hill Australia Pty Ltd.
In past, Marketers have built their techniques under the presumption of unbounded assets and zero impact of environment. The growth in distinction of limited assets and high natural expenses, marketers need to rethink their observations, theory and practices. They have to modify their arrangements on ‘product’ improvement, estimating, sales and distribution, and branding and packaging. Financial recessions in recent years, has included an alternate layer of concern as consumers change their ways of life-style to a lower level of spending and income. Organizations must adjust scrupulously their development objectives with the need to seek out the market share and sustainability. The focus of changing marketing need requires meeting
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.