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Discuss the Impact of the Recession on Consumer Behavior and on Marketers - Essay Example
Pages 4 (1004 words)
Discussion of the impact of the recession on consumer behaviour and on marketers BY YOU YOUR SCHOOL INFO HERE DATE HERE Discussion of the impact of the recession on consumer behaviour and on marketers Introduction The recession is causing numerous changes in consumer behaviour, especially in relation to their brand loyalty and their cost-conscious methodology when selecting products…
At the same time, marketers are resorting to new promotional campaigns in order to remain competitive and gain consumer attention in the face of this current economic downturn. Food and technology Statistics indicate that six in 10 consumers have reduced the volume of frequency as it pertains to eating-out in restaurant environments (Bainbridge 2010). As a result, especially noticeable in the pizza restaurant industry, marketers have changed their promotional activities to include vouchers with significant pricing discounts (Bainbridge). Where once major companies in this industry, such as Pizza Hut, used psychographic segmentation and targeting to gain attention and loyalty, they are finding it more difficult to compete especially when their products carry high price tags over competition. Companies like Pizza Hut once had well-established consumer segments that were devoted to the brand and were able to use rather low-cost marketing and higher price methodology to ensure positioning in terms of quality. Today, however, the recession has created price wars that continue to erode profitability especially with more consumers eating within the home and avoiding the high costs of restaurant eating. ...
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