Sunday, August 30, 2009

Recession actions - planned vs actual

 
When recession hits the papers - as it happen to far more people that those who are actually affected by unemployment - consumers inevitable make plans to adjust their spending and consumption to save money. Consumer behaviour though it to look at the less interesting, fun or gratifying areas of our lives to take the burden as seen in this AC Nielsen report with plans to save on electricity and gas was the clear action planned by consumers as a means to reduce the impact of the recession.
 
The reality of contracts with utility providers, a relatively homogeneous industry and no doubt the administration and hassle associated with attempting to achieve this means that although not planned the areas most effected by changes in spending as a result of the recession are buying new clothes, out of home entertainment, cutting down on take away foods and buying cheaper grocery brands.
 
Consumers will plan to beat the recession by cutting down on utilities (something that for the sake of the environment and as on one going means to save money should be done anyway) but in reality the greatest impact is on traditional consumption items...