Saturday, December 26, 2009

Economic Situation and Consumer Spending

Many factors affect the consumer buying behavior such as the cultural, social, personal and psychological factors. In personal factors, the economic situation of the country holds great importance in the world of today. If there is a boom going on, people spend a lot. However, if there is a recession, people may cut back on their spending as it is happening this Christmas in America. American consumers are looking out for good bargains and they are planning their shopping budgets more than ever before because of the recession in America. American businesses have also responded to the price sensitiveness of the consumers by cutting their prices and by offering good bargains to the consumers. Thus, in the long run only those businesses will prosper which will satisfy the needs and wants of the consumers. Guys, check out this article about Christmas sales in America and do give feedback.

http://www.forbes.com/2009/12/16/holiday-season-shopping-economics-opinions-contributors-john-zogby.html?partner=contextstory

2 comments:

Syed Ahmad Hashmi said...
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Syed Ahmad Hashmi said...

Economic conditions and consumer spendings have a very significant relation as is indicated by the Engel curve as well, which basically gives the changes in consumer spendings over time as income changes.Good Job hassan. keep it up. Engel's law concept is given on page 74 for the blog's traditional critics.