MARKETING, RECESSION, FINANCIAL CRISIS

Topic

The view is widely held that consumer behaviour changes during recession. According to the Office of National Statistics (ONS), ‘households with annual incomes of 62,000 pounds or above would reduce their annual spend by around 3000 pounds in an economic recession’. Use examples, identify and examine the ways in which consumers in UK have changed their behaviour in terms of household spending. How are some companies responding to this change in behaviour? Consumer behaviour

Consumer behaviour is the study of the behavioural characteristics of a person as a consumer. It includes psychological, economic and social factors. “Consumer behaviour is the study of how individuals or groups buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. The needs and wants of consumers often vary across different cultures, situations and individual characteristics.”(Marketing Management, Kotler and Keller). Proper study of consumer behaviour is necessary for the improvement of marketing strategies. Economic recession