Naseeb123
11-06-2010, 02:11 PM
Consumer Psychology in Recession
I will discuss to main points:
· Consumer psychology in a recession.
· How does the understanding of that psychology inform the marketing strategy?
1. What makes the difference between the way old consumer and new consumer think?
The main difference is the potential length and depth of this recession. In the consumer
Confident index, the recent percentage was 25% which is the lowest since this index lunch
3years ago. So, I think this is a very tough downturn the consumer had faced.
2. Why should the company segment the customer in term of their psychological thinking?
First of all the old marketing segmentation is obsolete and the company should go out and talk with the customer with open mind to re-frame that segmentation.
In fact we divided consumers into four groups in term of what did they face from the recession ?
· The slam on the breaks group.
This is the consumer who has been really devastated by the recession; he\she lost a job or know someone who lost a job .
· Pained but Patient group.
This is the kind of costumer who has lost a lot of money and properties but yet he is optimistic about the long term. While he\she is trying to adjust his consumer behavior, he\she is keeping on faith that it will be light at the end of this tunnel.
· Live today group.
This group tends to be younger and more urban, they have not save that much and they have not lost very much. They will still enjoy life and consumer behavior will not change until they lose money or job.
· The comfortably well group.
Those people have a sufficient caution financially to see them through the recession alternatively; they have not heavily invested in the market when it melted down, As a result they are carrying on normal.
These four groups are very important to enabling marketers to understand how to response to consumers.
3. Does your income place you in one of those groups?
No, infect neither your demographic or life style necessary places you in any of those group.
4. How marketers respond to this psychology?
Companies very considerably about their cash position, when credit is short we know that cash is key. We can’t generalize but if the company in relatively good cash positions, a recession is a terrific time to try and gain additional market share.
© ABDULRAHMAN NASEEB |Dr. SAMMER HAMMAD| KiNG FAHAD UNIVERSITY OF PETROLEUM AND MINERALS
I will discuss to main points:
· Consumer psychology in a recession.
· How does the understanding of that psychology inform the marketing strategy?
1. What makes the difference between the way old consumer and new consumer think?
The main difference is the potential length and depth of this recession. In the consumer
Confident index, the recent percentage was 25% which is the lowest since this index lunch
3years ago. So, I think this is a very tough downturn the consumer had faced.
2. Why should the company segment the customer in term of their psychological thinking?
First of all the old marketing segmentation is obsolete and the company should go out and talk with the customer with open mind to re-frame that segmentation.
In fact we divided consumers into four groups in term of what did they face from the recession ?
· The slam on the breaks group.
This is the consumer who has been really devastated by the recession; he\she lost a job or know someone who lost a job .
· Pained but Patient group.
This is the kind of costumer who has lost a lot of money and properties but yet he is optimistic about the long term. While he\she is trying to adjust his consumer behavior, he\she is keeping on faith that it will be light at the end of this tunnel.
· Live today group.
This group tends to be younger and more urban, they have not save that much and they have not lost very much. They will still enjoy life and consumer behavior will not change until they lose money or job.
· The comfortably well group.
Those people have a sufficient caution financially to see them through the recession alternatively; they have not heavily invested in the market when it melted down, As a result they are carrying on normal.
These four groups are very important to enabling marketers to understand how to response to consumers.
3. Does your income place you in one of those groups?
No, infect neither your demographic or life style necessary places you in any of those group.
4. How marketers respond to this psychology?
Companies very considerably about their cash position, when credit is short we know that cash is key. We can’t generalize but if the company in relatively good cash positions, a recession is a terrific time to try and gain additional market share.
© ABDULRAHMAN NASEEB |Dr. SAMMER HAMMAD| KiNG FAHAD UNIVERSITY OF PETROLEUM AND MINERALS