With 5.7 million Americans out of work since the recession began in December 2007, according to the Bureau of Labor Statistics, and some 16% of U.S. employees living on reduced pay, according to a recent Hewitt Associates survey, it's no surprise that many people are cinching their belts. What's troubling marketers, however, is the prospect that consumer psychology has changed during the deepest recession in half a century, and that the tightening will remain when the downturn ends.Do you think the recession will cause a permanent change in consumer spending habits? Why or why not?
7 comments:
Yes the recession will cause a permanent change in consumer spending habits. After a large economic turn, it is impossible for there to be no long term changes. People have tightened their spending and I'm sure they will continue to. This doesn't go for everyone though. Though many will continue to keep their spending limited, others will begin to spend more money as the economy turns around.
Max B P4
yes, i think that the recession will cause a permanent change in consumer spending habits. i believe it will only effect a few generation but after that it will go back to normal. It will be habits for the kids when they grow up to save money so therefore they will have the money saving mantality for their lives. In a few generations from now it will all be back to normal i believe.
No, I think that once our economy is back to normal things will slowly get back to how they were years ago. I believe our parents will remain the same and save but by the time our younger generation (us high school students) have kids they will begin to spend their money and not save because they didnt experience what happend right now.
Nick Lutterman
No i dont not think this will change consumers ways with shopping at all, just because there is a recession and we are buying less... what happens when the economy gets good again? I think people will just keep spending more than they earn, there are very few people left in this world who understand the importance of saving their money.
paige petersen
hour 6
I think people are definitely thinking twice now about what they buy and what they spend their money on. The companies really need to sell the idea of NEED for their products.
Since people do not have as much money to spend, they need to be convinced that their hard-earned dollar is going to good use.
People will spend, if they are convincingly sold on a product.
I believe consumer spending will be down for a few more years because no one knows how long the recession is going to last, even though the positive side appears to be coming. I think people are going to be scared that this may happen again and be more careful with their disposable income. With deals like "Return your car if you can't pay for it", which I think would make a car buyer that had to return their car feel embarrassed, suggest that things may not be comfortable in the economy for awhile. People are going to hunker down and prepare for the future, not impulse buying like in the past.
Justin L
4
Yes, I believe with the economy taking darastic turns it has caused people to spend less. It has opened the eyes of many people, and taught them to be more wise and concious with their spending habits. They have experienced how fast the economy can shift negativly which has taught them to be more wise upon how they spend their money in the future to be perpared if the economy drops again.
Becca 1.
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