RSI Industry Trends

Will Consumer Buying Habits Ever Be the Same? March 1st, 2010


Will Consumer Buying Habits Ever Be the Same?

Consumer spending has changed a lot over the last few decades, and even more in the last few years. It is interesting to see the effect that this recession has had on the spending of every different demographic of consumers. By taking a look at the economic slumps that have occurred in the past, we can see the trend of consumers to cut back their spending, but for the most part, their spending habits are quick to rebound as things begin to return to normal. This time around, consumers definitely have a different perspective on the way that they spend their money. Many people have had such a difficult time dealing with the struggles of losing their jobs and still trying to make ends meet, that the adaptations they have made during this period of time will most likely linger into the future.

In the past it has been very common for individuals to make changes to their spending habits during times of difficulty but they usually return to old habits after a brief period of time. A perfect example of this was the gas crunch that took place in the 1970s. Gas prices spiked so high that it forced many people to cut back on gas consumption tremendously. As time moved on people began to sink back into their old ways, and consumption of oil products got even more profound as many people started purchasing “gas guzzling” sport utility vehicles. Although this is the norm, the Great Recession has seemed to have a different effect on the population.

As money became tight for many individuals, they began cutting back on the brand name products that they were purchasing. Some luxury items were totally given up, while others were just substituted with more generic products. The real question now, will this be a lasting effect? Experts believe that the adjustments that were forced on people as a result of the economic conditions will have a lasting effect on how they choose to spend their money. Not to mention the fact that many people who made the switch from brand name products to the more generic brands, realized that they liked the generic brands just as much, if not more than the luxurious brands. The sheer magnitude of an event like this has taught people to worry more about living well and enjoying quality products instead of obsessing over the brand name on the products that they purchase.

Experts believe that this recession will have a lingering effect when it comes to the full recovery of consumer spending because of its severity. For many people the Great Recession caused a lot of very visible hardships that are still very fresh in the memories of the average American. With such vivid and recent memories of difficult times, from a psychological perspective, many people can’t help but think that there is a very real possibility that an event of this nature could occur again. This is a very common psychological mistake that is made by many people. Even though mentally it seems as though the possibility that an event like this will happen again within the very near future, the facts show that this is not the case. Despite what the facts state, it is very obvious that the psychological effects of the Great Recession will cause consumers to act conservatively while handling their money.

As a direct result of the above statements, Americans are actually saving more now than they have at any time in the past. According to figures from the United States Commerce Department, for the last ten years the average American saved around 2.7 percent of their disposable income per year and at times this figure was as low as less than one percent. As of October 2009, this figure has almost doubled to around 4.4 percent of disposable income. Much of this additional savings can be attributed to the will of consumers to be savings savvy. Doing little things, such as switching from luxury products to generic products as well as using coupons while shopping at the grocery store, has only helped to increase savings. So next time you take a visit to the grocery store, you will know why it takes twice as long to ring up each customer.

Although coupons and other methods of saving are helping to reduce consumer spending, the level of available credit is even more to blame for the lack of spending. Before the “credit crunch” consumers were spending like crazy, and a lot of the spending was done with credit. There was an article that was written in the Contra Costa Times the other day that described the fact that the average price of housing has been going up but the average number of houses being purchased has been going down. It seems pretty obvious that the number of houses being purchased should be going up as the housing market begins to go on the up-swing. The real culprit behind the lack of houses being purchased, amongst other reasons, is the fact that consumers are having a hard time financing the purchase of these homes because of their lack of available credit.

Between the credit crunch, the increase in savings, and the psychological effects of the recent economic downturn, consumer spending is going to stay at a very conservative level for the next few years. People will either not have the funds to go out and purchase everything they want, or will not have the desire to do so because of the uncertainty of the future. This will in turn affect industries that sell directly to consumers as they continue to feel the squeeze from the lack of consumer spending, especially companies that create luxury items. Even as a few years pass by, and consumers begin to start spending at a more generous rate, they will still be saving more than they ever have in the past. The psychological effects of the recent downturn will force consumers and businesses to make a lot of adjustments in the ways that they go about making decisions. Although this seems like negative news for businesses looking for a big boom after two years of walking the tight rope, on the bright side, things are still consistently picking up. Also, tighter restraints on credit and consumer spending will only add to the stability of the economy in the future.


CAREER CORNER MANAGEMENT MATTERS INDUSTRY TRENDS

Career Corner Article Series
Career Corner Articles Home

5 Tips for Surviving Your First Day on the Job 2019 | 5 Tips for Surviving Your First Day on the Job | 2011 and the Rise of Job Offers | 7 Big Reasons Why You Can't Find the Job of Your Dreams 2015 | 7 Big Reasons Why You Can't Find the Job of Your Dreams | 10 Tips for Managing Stress | Balancing Life | Being Smart About Your 401(k) | Are You Ready To Return To Work 2019? | Are You Ready To Return To Work? | Are You Ready To Return To Work? | Asking for that Raise | Balancing Life 2015 | Balancing Life | Body Language Says It All | Career Change | Career Search Expense Deductions | Climbing The Corporate Ladder 2013 | Climbing The Corporate Ladder | Customer Face Time Equals Higher Sales 2014 | Customer Face Time Equals Higher Sales | Deferred Compensation Pay Regulations | Does It Really Have To Be All Or Nothing 2019? | Does It Really Have To Be All Or Nothing? | Essential Career Skills 2017 | Essential Career Skills 2014 | Essential Career Skills | Essential Personal Skills 2016 | Essential Personal Skills | Essential Skills For Executives 2017 | Essential Skills For Executives 2014 | Essential Skills For Executives | Executive Level Jobs Expected to be in the Green in 2010 | Falling Behind in the Race for Talent | First-time Manager | First Impressions 2018 | First Impressions | First Impressions | Get Linked In | Getting the Salary You Deserve 2015 | Getting the Salary You Deserve | Great Impression in 60 Seconda 2017 | Great Impression in 60 Seconds | How a Career Coach Can Help in Today's Economy | Handling A Layoff | High Paying Jobs for 2009/2010 | How to Ask for a Raise 2018 | How to Ask for a Raise | How to Ask for a Raise | How to Find Your Career Calling 2014 | How to Find Your Career Calling | How to Handle Rejection | How to keep your job during the recession | How to Love Your Job 2015 | How to Love Your Job | I Want a New Job, 1000 Miles Away! | I Want a New Job, 1000 Miles Away! | Importance of Cover Letters | Job Boards | Leadership & Management 2013 | Leadership & Management | Looking for a Career Change? Find Happiness 2018! | Looking for a Career Change? Find Happiness! | Love Your Job | Make Your Resume Sparkle 2018 | Make Your Resume Sparkle | Make Yourself Relevant 2017 | Make Yourself Relevant 2015 | Make Yourself Relevant | Make Way for Generation Y | Making a Temp Job Permanent 2018 | Making a Temp Job Permanent | Making Career Resolutions 2015 | Making Career Resolutions | Making Speeches Can Help Your Career 2017 | Making Speeches Can Help Your Career 2014 | Making Speeches Can Help Your Career | Maximize Your Potential 2017 | Maximize Your Potential | Mental Effects of Exercising 2018 | Mental Effects of Exercising | Need a Great Job? Try These Top Locations for jobs | Networking In Cyberspace | Networking Strategies For "Reserved" Executives | Non-Existent Careers Just 10 Years Ago | Opportunity Cost of Relocation 2015 | Opportunity Cost of Relocation | Personality Key to Career Success 2017 | Returning to the Workforce | Stay Or Leave? | Summer Career Strategies | Surviving the Interview Process | Personality Key to Career Success 2013 | Personality Key to Career Success | Rehiring Retirees 2015 | Rehiring Retirees | Reinventing Your Career | Reinventing Your Career | Relocating: Asking for that Raise 2019 | Relocating: Taking a New Job Hundreds of Miles Away | Resume Tips to Keep You Competitive | Returning to the Workforce 2016 | Returning to the Workforce | Salary Negotiation Tips 2018 | Salary Negotiation Tips | Should I Go Back to School 2019? | Should I Go Back to School? | Spicing up your Career | Stand Up to Work Induced Stress | Stay Or Leave? 2015 | Stay Or Leave? | Structuring Your Workday Morning 2018 | Structuring Your Workday Morning | Successful Up and Coming Careers | Successful Up and Coming Careers | Summer Career Strategies 2015 | Technology Transforming Branding | The Career Mother 2014 | The Career Mother | The CEO Confidence Index | The First 60 Seconds: Making a Great Impression | The Green Workforce | The Importance of the Elevator Pitch | The Job Market of the Future | The Most Effective Job Search 2017 | The Most Effective Job Search | The Most Effective Job Search | The Need for Talent in Today's Job Market | Tech Industry Makes a Much Needed Rebound | Timing Your Career Move 2018 | Timing Your Career Move 2014 | Timing Your Career Move | Top Ten Behaviors to Avoid in the Office | What Networking Mistakes Are You Making 2019? | What Networking Mistakes Are You Making? | What Networking Mistakes Are You Making? | When the Going Gets Tough... Be Patient 2018 | When the Going Gets Tough... Be Patient | Where Have All the Writers Gone? | Why actors succeed in the business world 2018 | Why actors succeed in the business world | Workforce Becomes Increasingly Female 2013 | Workforce Becomes Increasingly Female

Management Matters Article Series
Management Matters Articles Home

1 In 4 Executives Flounder In Management | 10 Tips To Create Stronger Teams 2017 | 10 Tips To Create Stronger Teams | 10 Tips To Create Stronger Teams | Aiming for Success | Avoid Meeting Overload | Avoiding Age Discrimination While Hiring | Avoiding Hiring Mistakes | Becoming Your Own Boss 2015 | Becoming Your Own Boss | Business Is Personal 2018 | Business Is Personal 2015 | Business Is Personal | Can You Learn a Lesson in Management From Your Television? | Climbing the Management Ladder 2018 | Climbing the Management Ladder 2015 | Climbing the Management Ladder | Conducting an Effective Employee Interview | Creating a learning environment in the office 2013 | Creating a learning environment in the office | Dealing with Conflicts in the Workplace 2015 | Dealing with Conflicts in the Workplace | Dealing with Discrimination 2015 | Dealing with Discrimination | Delegating Tasks Is Essential 2015 | Delegating Tasks Is Essential | Don't Keep Your Employees In The Dark | Effective Management Tools | Effective Training in the Workplace 2019 | Effective Training in the Workplace | Employee Critiques 2017 | Employee Critiques | Employee Morale Post-Recession | Employee Morale Dictates Profits 2015 | Employee Morale Dictates Profits | Employee Turnover 2014 | Employee Turnover | Fostering an Educational Environment in the Work Place | Global Skill Sets | Handling Employee Discrimination Claims | Hiring an Intern 2019 | Hiring an Intern | Hold On To Your Super Stars 2018 | Hold On To Your Super Stars | How to Build Company Morale 2014 | How to Build Company Morale | How to Make Effective Decisions 2016 | How to Make Effective Decisions | How to Manage a Project | How to Manage the Virtual Work Force | Inspiration Equals Success | Interview Questions To Avoid | Is Your Position of Power Going To Your Head? | Is Your Position of Power Going To Your Head? | Keeping Employees Engaged and Ready to Work 2019 | Keeping your employees engaged | Keeping Employees Engaged and Ready to Work | Layoffs: Are you discriminating? | Leadership Skills and Styles | Leadership Styles | Leadership Skills and Styles | Leadership Styles | Making Informed Decisions | Management Hiring Abroad | Management Theory 2018 | Management Theory | Managing and Understanding the Workplace Generation Gaps | Managing Long Term Growth 2015 | Managing Long Term Growth | Managing The Meeting 2017 | Managing The Meeting 2014 | Managing The Meeting | Managing the New and Improved Virtual Office 2013 | Managing the New and Improved Virtual Office | Managing the "Overqualified' 2019 | Managing the "Overqualified" | Managing your Job Search: The Importance of Your Cover Letter | Managing your Retirement | Managing your Retirement | Minimize Wasted Time 2017 | Minimize Wasted Time 2013 | Minimize Wasted Time | Multiculturalism in the Office | New Management Checklist 2013 | New Management Checklist | New to Interning 2017? | New to Interning? | Question not to ask when Conducting an Interview | Recognizing Your Weaknesses 2018 | Recognizing Your Weaknesses | Redefining Compensation | Reducing Workers Compensation Costs | Sales Executive Must Knows 2014 | Sales Executive Must Knows | Short Term Goals: Creating Continuous Fulfillment 2019 | Short Term Goals: Creating Continuous Fulfillment | Staying On Top of Your Game 2014 | Staying On Top of Your Game | Staying On Top of Your Game | Strategic Planning Requires Planning 2017 | Strategic Planning Requires Planning | Strategic Planning Requires Planning | Talent Management 2016 | Talent Management | Teach Ethics from The Top Down 2018 | Teach Ethics from The Top Down 2014 | Teach Ethics from The Top Down | The Age of Social Media | The Dangers of Burnout | The Importance of Having a Demotion Policy | The Key to Hiring Stellar Candidates 2018 | The Key to Hiring Stellar Candidates 2013 | The Key to Hiring Stellar Candidates | The Next Generation: Hiring New Graduates 2015 | The Next Generation: Hiring New Graduates | The Season of Giving | The Stressful Workplace 2019 | The Stressful Workplace | The Stressful Workplace | The Ultimate Management Checklist | The Value of On-Boarding 2015 | The Value of On-Boarding | Time Management and Goal Setting 2017 | Time Management and Goal Setting | Tips for Improving Your Team's Productivity 2018 | Tips for Improving Your Team's Productivity | Tips for Improving Your Team's Productivity | Tips on How to Effectively Lead a Multigenerational Workforce | To Layoff, or not to Layoff? | Training: How to make it stick... | Training Sales Force In Business Etiquette 2014 | Training Sales Force In Business Etiquette | Whose Needs Matter More | Whose Needs Matter More | Would You Move For The Right Job? | Would You Move For The Right Job? | Video Calls | You Can't Manage Others Until You Can Manage Yourself 2018 | You Can't Manage Others Until You Can Manage Yourself | You Want To Be A Good Boss But, Do You Need To Be Harsh? | You Want To Be A Good Boss But, Do You Need To Be Harsh?

Industry Trend Article Series
Industry Trend Articles Home

401k for Generation Y 2014 | 401k for Generation Y | 1 In 5 Workers Job Hunting | 2006 Job Trends | Accounting Finance Careers | Agricultural Loans Strong Financial Sector | An Age of Expansion 2019 | An Age of Expansion 2015 | An Age of Expansion | Are We Fighting A Winning Battle Against Obesity? Maybe... | Attorney Client Privilege | Automation Key To Pharmaceutical Growth | Banker Association Warns Of Farm Credit System | Banning Junk Food Sales in Schools | Biodiesel Demands Fuel Growth in Food Markets | Biofuels Use Touted to United Nations | Biotech Investment Boosted | Biotech Pharmaceuticals Expanding | Biotech Supports FDA On Cloning | Biotechnology Executives Break Oil Dependency | Biotechnology Fuel Costs | Build Solid Relationships With Doctors | Business Lunch Etiquette | Call Revenues Continue To Fall | Cancer Clinical Trials Awareness | Carbon Emissions Tightened | Carpal Tunnel May Be Genetic Condition 2018 | Carpal Tunnel May Be Genetic Condition 2014 | Carpal Tunnel May Be Genetic Condition | Challenges in the Legal Industry | Chamber of Commerce & Interpol Combat Counterfeiting | Chamber: Tighten Aviation Control System | Commercial Real Estate Market Growth | Compliance Growing Concern | Construction Industry Growth Continues | Construction Materials Hit By High Inflation | Constructions Starts Continue Slide | Consumer Debt On The Rise | Cooking Utensils & Cleaning Products See Increase in Consumer Spending | CPG Remains Strong Despite Gas Prices | Customer Centric Marketing | Customer Retailer Relationship | Customer Satisfaction Linked To Customer Loyalty Programs | Customer Satisfaction Linked To Customer Loyalty Programs | Defining Privacy in Today's Internet Based Era 2018 | Defining Privacy in Today's Internet Based Era | Develop Strong Marketing Strategies 2017 | Develop Strong Marketing Strategies 2013 | Develop Strong Marketing Strategies | Disasters Hit Insurance Industry | Doctors Bring Millions To Health Centers | E-Learning 2013 | E-Learning | Education Witnesses Growth | Employer Health Care | Employer Initiative Aimed At Fighting Diabetes 2017 | Employer Initiative Aimed At Fighting Diabetes | Family Leave Act Remains Complicated Issue | Financial Firms Spread | Food and Beverage Industry Support Limits on Junk Food Sales in Schools | Food Firms Expect Food Retailing Changes | Food Industry Changes | Food Makers Look to Protect Profits | Food Products Industry Sees Growth In Boston | Food Products Trends | Food Safety Action Plan Unveiled | Gas Prices Don't Slow Spending | GE Introduces Smart Appliances Looks to Save Consumers Money | Get Out And Play 2019! | Get Out And Play! | Global Executive Call | Global Warming Debate Gets Heated 2016 | Global Warming Debate Gets Heated | GM Gives Taxpayers a False Sense of Hope | Google and Viacom Test Online Video Model | Grocery Manufacturers Call For Tighter Controls | Grocery Retail Sales Growth Not Keeping Pace With Inflation | Grocery Sales Won't Pace With Inflation | Healthcare Industry Stays Healthy | Health Care Contractors Meeting Demands | Health Care Cost Concerns | Health Care Mandates | Health Care Outlays | Health Savings Accounts | Higher Salaries 2006 | Homebuilding Slowdown | Human Resources | Important Skill Sets for Top Sales Executives Today 2015 | Important Skill Sets for Top Sales Executives Today | Improving Productivity When Working From Home 2019 | Improving Productivity When Working From Home 2017 | Improving Productivity When Working From Home | Incorporating the Triple Bottom Line 2014 | Incorporating the Triple Bottom Line | Industrial Biotech Wave | Information Technology Industry Survey | Innovations in Medicine 2018 | Innovations in Medicine 2015 | Innovations in Medicine | Insurance Industry Concerns | International Telecommunications Study Results | Internet Protocol Television | Investment Portfolios Pay Off | Is Cable TV Becoming Obsolete? | IT Executive Compensation Upswing | IT Professionals Explore | Late Credit Card Payments Continue Fall | Law Department Spending | Legal Executive Demand | Legal Potholes in Social Media 2015 | Legal Potholes in Social Media | Legal Technology | Marketing Executive Salaries Jump | Mature Market Wields Spending Power | Markets Making a Comeback in 2013 | Marketing PR | Maximize Company Visibility | Maximize Company Visibility | Medical Device Executive Demand | Medical Record Access Growing Consumer Issue 2017 | Medical Record Access Growing Consumer Issue | Medicare Payment Cut Concerns | Mexican Truckers On U.S. Roads Questioned | Networking on the Net | Most Fuel-Efficient Vehicles of 2011 | Networking on the Net | New Era Telecommunications | New Retail Model: Give To Charity | New To The Market: Public Airwaves | Nuclear Power Today 2015 | Nuclear Power Today | Number of Home Based Businesses on the Rise 2015 | Number of Home Based Businesses on the Rise | Patients Health Literacy Low 2017 | Patients Health Literacy Low 2014 | Patients Health Literacy Low | Personalized Medicine | Pharmaceutical Sales Practices Inefficient 2015 | Pharmaceutical Sales Practices Inefficient | Physician Performance Measures | President's Insurance Agenda Impact | Protecting Your Health 2019 | Protecting Your Health 2015 | Protecting Your Health | Real Estate: Renting VS. Buying | Real Estate 2006 | Real Estate Industry Technology | Real Estate Market Ready For Investors | Real Estate Resurgence | Realtors Applaud FHA Reform | Rebuilding the Construction Industry | Retail Industry Growth | Retailers Into 2006 | Retirees Planning To Purchase New Homes 2013 | Retirees Planning To Purchase New Homes 2013 | Retirees Planning To Purchase New Homes | Retirement Pension Reform | Sales Executive Roles | Sandwiches Billion-Dollar Business | SBA to Offer Financing to Automobile, RV Dealerships | Sealing the Deal Over Lunch 2018 | Sealing the Deal Over Lunch 2015 | Sealing the Deal Over Lunch | Secrets of Success 2018 | Secrets of Success | Secrets of Success | Skill Sets For Successful Sales Executives 2018 | Skill Sets For Successful Sales Executives | Skill Sets that will get you the Sale 2018 | Skill Sets that will get you the Sale | Small Business Association: Review, Reform Regulations | Small Business Big Player | Small Business Lucrative For Financial Institutions | Social Media | Stem Cells: The Wave of the Future | Stem Cells: The Wave of the Future | Stock Market Investment Strategies 2018 | Stock Market Investment Strategies 2014 | Stock Market Investment Strategies | Successful Skill Sets | Surfing the Smartphone Wave | Sustainability: Don't just think it, do it. 2014 | Sustainability: Don't just think it, do it. | Tax Reform Tops Business Priorities | Tech Timeout: Wearable Computers | Technology Brings Hope to the Recession | Technology Integration Still Critical To Banking Industry | Technology Integration Critical To Banking Industry 2015 | Technology Integration Critical To Banking Industry | Technology Trends 2018 | Technology Trends 2013 | Technology Trends | Telecommunications Reaching Home | Television Apps 2016 | Television Apps | The Banking Industry is Going Mobile | The Foreclosure Crisis | The Green Workforce 2019 | The Green Workforce 2018 | The Green Workforce 2015 | The Green Workforce | The Merger and Acquisition Takeoff | The Motorist Choice Awards | The New Age of Subliminal Marketing 2014 | The Olympic Work Force | The Trend Towards Online Education | Then New Age of Subliminal Marketing | Top 10 Medical Innovations For 2007 | Trend Alert: The Customer Sets The Price | U.S. Broadband Use Soars | U.S. Chamber Rebuilds America | U.S. Firms Losing Ground Leading Innovation | U.S. Hotel Transactions Hot Market | Vaccine Market Booming | Wal-Mart Reigns King of Retailers | Wal-Mart Still Reigning through the Storm? | Weigh Options on Home Equity Loans 2018 | Weigh Options on Home Equity Loans | Where the Jobs Are: Growing Industries | Who Doesn't Want To Live Longer 2018? | Who Doesn't Want To Live Longer? | Why Exercise is so Important to your Workplace Health 2019 | Why Exercise is so Important to your Workplace Health | Why Exercise is so Important to your Workplace Health 2017 | Why Exercise is so Important to your Workplace Health | Will Consumer Buying Habits Ever Be the Same? | Workers Critical Of Wage Disparity | Workplace Health Plans Help Productivity 2017 | Workplace Health Plans Help Productivity 2014 | Workplace Health Plans Help Productivity 

 

  • CALL US (800) 832-8268