There is no doubt that consumers are behaving differently from just a couple years ago.  They’re borrowing less and saving more.  They’ve become much more thrifty, spending less time shopping, buying less, and trading down to less-expensive alternatives.  They’re also more suspicious of big businesses.

The question is whether these changes will be permanent.  A recent article in Newsweek cites evidence that when a really difficult year is experienced in early adulthood, fundamental changes occur in people’s core values and behaviors.  Taking into account the ongoing insecurity caused by the current high unemployment (which is particularly high for young adults), it is quite probable that this generation won’t be as free-spending as its predecessors.

On the other hand, as the economy recovers, we expect less profound changes among Americans over the age of 30, since their shopping habits are more ingrained.

The conclusion for marketers: while we expect shoppers to continue to be somewhat more frugal than they used to be, they will open their wallets again soon!  To learn more about your customers’ attitudes, give us a call at (818) 752-7210.

Sources: “The Recession Generation,” Newsweek, January 9, 2010; “17 Ways Consumers Are Changing,” US News and World Report, January 15, 2010