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21.10.2010 The recession has changed US consumer behavior

While the downturn has certainly changed the landscape, it may also have fundamentally altered the behavior of numerous US consumers, who are now learning to live without expensive product. Many companies with strong premium brands are anticipating a rapid rebound in consumer behavior – a return to normality, as after previous recessions. They are likely to be disappointed.

New McKInsey research based on a panel of 2.672 consumers found that, in any given category, an average of 18% of consumer-packaged-goods consumers bought lower-priced brands in the past two years. Of the consumers who switched to cheaper products, 46% said they performed better than expected, and the large majority of these consumers said the performance of such products was much better than expected. Consequently, 34% of the switchers said they no longer preferred higher-priced products, and an additional 41% said that while they preferred the premium brand, it “was not worth the money “.

B.L. 21.10.2010