Consumer Behavior After a Recession
INTRODUCTION: In the fall of 2007, the United States economy entered into a “Great Recession”, that was more severe than any of the recessions since the Great Depression (Katona). Current studies have shown that the Great Recession may have left a “deep and lasting trauma” on consumer behavior and spending habits (Lavin). Now as the economy has begun to slowly recover, market researchers have yet to discover if consumers will snap back to their former buying behaviors. For our research project, we examined and evaluated the change in the buying behavior of sixty people who live in Sonoma County. We conducted our research by creating a questionnaire, analyzing other found data, and by reviewing previous research articles regarding this topic. While researching, we discovered that current studies have not yet discovered the real impact of the Great Recession on consumer psychology. However, some research has shown that buying behaviors can be segmented into four groups, which explain consumer psychology during a recession (Quelch). Our research paper will focus on how the recession has shifted consumer psychology and altered buying behaviors since 2007, by analyzing how consumers in Sonoma County have cut back and which segments they each fit into.
RESEARCH:
After reviewing articles written about “post-consumer behavior” after a recession, many scholars believe that consumers will not go back to their free spending ways as they have in the past (Ives). Consumers affected by the Great Recession now find importance in saving money and buying fewer goods and services on credit (Katona). Scholars believe that consumers who have experienced loss and cut backs during the Great Recession will lack consumer confidence and “continue to live with residual uncertainty” in the future (Arussy). Due to the recession, consumers have learned how to find the best deals and greatest value for their buck (Arussy). Consumers have also made small adjustments to their
RESEARCH:
After reviewing articles written about “post-consumer behavior” after a recession, many scholars believe that consumers will not go back to their free spending ways as they have in the past (Ives). Consumers affected by the Great Recession now find importance in saving money and buying fewer goods and services on credit (Katona). Scholars believe that consumers who have experienced loss and cut backs during the Great Recession will lack consumer confidence and “continue to live with residual uncertainty” in the future (Arussy). Due to the recession, consumers have learned how to find the best deals and greatest value for their buck (Arussy). Consumers have also made small adjustments to their
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