Will your recession shopping habits continue when it's done?
For the great bulk of this recession, downturn-shocked consumers have been tripping over themselves to broadcast their new, righteous shopping ways.
We’re not stupid, they muse in regret. We don’t need that $4 jug of Palmolive when the $2.50 store brand will do. We know this now. Just give us a chance. We’ve changed. We have changed!
Indeed, while the economic slump did force many customers into more responsible habits, the lingering question has always been, “Sure, but how long will that last?”
The ideal scenario would prove shoppers really have learned to conserve their cash, but come on – this is Canada. A toxic, waste-all consumer behaviour is more North American than credit card debt and crippling obesity.
We couldn’t come out for the better on this one, could we?
If you listen to a new McKinsey Quarterly report, maybe we have. According to the research firm’s data, 34 per cent of shoppers who switched to cheaper brands during the recession said they wouldn’t go back when it’s over.
Perhaps even more encouraging to our consumer growth, an impressive 41 per cent said that – while the premium brand is still preferred – they realized anything but the No Name product was “not worth the money.”
Now, this is great. Uplifting, even. But that question from above still lingers: how long will this pattern endure?
The sceptic in me sincerely believes, on the whole, most shoppers will go right back to more expensive name brands as quick as their bank accounts (or social perceptions) will allow.
But the McKinsey Quarterly data suggests our behaviour might be salvageable on a more modest scale.
Consider two products someone might skimp on in times of The Pennypinch: beer and cold medicine.
With the former, an item like beer is likely to fall into the “You get what you pay for” category; cheaper beer, generally, is worse tasting. According to the McKinsey Quarterly report, only 31 per cent of beer drinkers who switched to a less expensive brand said they enjoyed the outcome. This group is likely to revert to its pre-recession beer budget as soon as possible.
With cold medicine, though, the difference in satisfaction between a store brand and name brand is likely to be negligible; consumers, generally, would find the same result with either. What’s the McKinsey Quarterly survey suggest? That almost half (48 per cent) of consumers agree, and said their experience with cheaper cold medicine was “better than expected.” Sure seems like there’s a lesson there, no?
So what’s all this mean? I don’t know, nothing maybe. For my money, it appears the lasting effect this recession will have on consumer behaviour might not be as grand as we’ll let on.
Yet its lessons won’t be lost on every shopping arena, and maybe shifting customer philosophy on things as petty as cold medicine will be enough to hang our hats on in the long run.
What about everyone else out there? If this downturn has changed your shopping habits, do you – honestly, now – see them sticking that way for good?
By Jason Buckland, MSN Money
Posted by: me | Dec 10, 2021 12:09:11 PM
i am not impressed by the instability of the business world. nor am i impressed by the complete lack of loyalty (to their workers or their customers or the environment).
when i see the ridiculous bonuses and wages of business leaders, while the regular worker pays for the already-wealthy's mistakes and perks....i cannot go back to the pre-recession consumerism.
my focus and my spending habits will be dictated by MY NEEDS....not the NEEDS of the economy or business.
as soon as the banks cleaned us all out of an offensive amount of money, and true nature of our greed driven society was revealed, i started cancelling my monthly ball and chains...ie cable, cell phone etc. and brand loyalty went completely out the window.
i will buy local because my economy is and should be far more important than a rich man's desires.
Posted by: Skip Bezaire | Dec 10, 2021 3:02:23 PM
I agree for the most part in what me said.(not enough courage to use your name). I for one have changed my spending habits big time and plan to carry on in the future. I don't plan to feed the BigBusiness ego any longer. I try to buy locally as much as possible, but inevitably we are forced to go elsewhere as even the big stores here are not loyal to the customer any longer . By that I mean they will discontinue carrying a product you may have been using for years so they can introduce another in its place that makes the store a bigger profit and put an unwanted taste in our mouths at the same cost but far less satisfaction. So be it for asking the client who may have enjoyed that previous product for many years. All the while professing customer service. I now go to a competitors store an hour away to purchase that product I enjoy along with many other items that I would normally buy at home. Most of us thanks to the Liberals will have far less to heat and eat with come 2010 with HST on our backs. So stay frugal until a party arises out of the dust that truly cares for its constituents and their welfare.
Posted by: Don | Dec 10, 2021 3:21:19 PM
I have always shopped at Canadian companies, and local as much as possible (I step foot in Wal-Mart every couple of years) I am upset that companies will not do anything to stop escalating price increases. Resturaunts for example give me way to much on the plate and there is always some wasted. They will not provide smaller portion sizes as then they could not charge what they do. Tthey keep giving you more food that ends up sitting on the plate but raises their cash flow so I rarely eat out any more. I am tired of companies that say buy from me and I will contribute to charity. While it seems very noble I would rather have a cheaper product and I will decide where to donate and I will take the tax write off for it. Isnt it ridiculous companies can donate a dollar from the sale of every 2.49 product to charity? What does that say about the price they are charginging for the product they are manufacturing? Why with all the changes to laundry detergent (less packaging, less $$ to ship) why has the price not altered? How much do you think it costs to ship a package of bologna (4.99) from Eastern Canada to western Canada? Isnt that environmentally responsible!! Could saved shipping costs outfit a smaller plant closer to the market? To expensive they say...well I think we are already paying the price arent we? Corporations are out of control and until we get over this bigger is better idea nothing will change. What is wrong with a company providing a service and showing good income year after year? But no.....they have to meet a sales increase goal of 10% and if they only see 7% the price of stock goes down....what???? They still made more money and saw good growth so again there is a loss for the small investor.
Our system makes the rich richer. I do everything I can from making my own bread to buying most of my Christmas presents at the local farmers market. You might as well support your community because the big companies arent going to.
Posted by: me | Dec 10, 2021 5:12:48 PM
tell you what...call me whatever you want.
the fact is, my name is irrelevant.
it's my message that is important.
Posted by: Chinook Man | Dec 10, 2021 5:51:53 PM
I have gotten rid of my satellite entertainment system, cell phone, and brand name products. I have been free of all that unnecessary "wants" for the 10 months now. I, for one, plan to stay this course... whether "we" come out of the recession or not... it makes no difference to me.
Posted by: zena | Dec 10, 2021 11:19:35 PM
I've never been one to care to use, nor be impressed by other people's brand name flinging. Really.
I'm impressed when;
your bills are paid
everyone in your household *even if it's simply yourself* is clean, well fed with HEALTHY food
wears wel fitting well made clothes top to bottom *Mark's work Wearhouse anyone??*...
able to save at least a little every pay
and still finds time for FUN activities
and it will impress me b/c it shows me YOU are the one in control of your destiny...
I've never wanted to pay for the extra's..except internet of course :D..so..therefore..I just don't.
I've gotten along this way for just over 30 years now,without feeling deprived...and many other's before that..and now it's fashionable-go figure.
message to director/manager- junk email or survey's b/c I posted to this site are unwelcome
Posted by: John Steed | Dec 11, 2021 9:18:36 PM
The recession has not changed anything for me. My "shopping" habits are independent of the economy. Well, actually that's not quite 100% true. Yes, I have taken some advantage of the poor economy to my benefit.