From Frivolous to Frugal: Recessionary Trend Forcing Changes in Consumer Behavior?*



Case Code : CLCB061
Publication date : 2009
Subject : Consumer Behavior
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

consumer behavior, consumer spending behavior, spending habits, consumers'preference, belt tightening, sub-prime crisis, recession, substitutes


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With a recessionary trend setting in, experts said that a new breed of consumers was emerging. Industry observers are trying to keep track of the changes in consumer behavior as consumers were increasingly shifting from being frivolous to frugal as a result of these hard times.


  Consumer behavior
  Corporate branding


The sub-prime crisis that emerged in the US in mid-2007 shook the world economies severely. The crisis led to a recessionary trend that hit each and every sector of the economy badly, resulting in a slowdown in the growth of bottom lines of companies. The changed situation sparked the emergence of a new breed of consumer, according to experts...

Questions for Discussion:

1. With frugal consumerism creeping in, what should luxury goods producers do to survive and sustain themselves?
2. According to you, what strategies should producers of impulse goods adopt when the consumers begin to go in for belt tightening?
3. Discuss whether the companies should cut down prices or cut down expenditure to maintain a healthy growth.

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