The recession has caused lasting changes in consumer shopping behavior. People are continuing to save money by cooking more meals at home, buying store brands, using coupons more frequently, and shopping more strategically for deals. While consumer spending has risen since the recession, shoppers remain cautious and focused on value. Retailers have adapted by offering more discounts, bulk options, and private labels. Coupon use is no longer viewed negatively and has become a mainstream way for consumers to save money on groceries and other household items.

1. Submitted by:
Prashant
Shawn
Professor : Samuel Lota Jr.
*

2. *
* The period of a business cycle during which
total production and total employment are
decreasing.
*We can also state it as two consecutive
quarters of negative economic growth.

3. *
*We know effect of recession on consumer will last indefinitely.
*In general we can say that consumer want good value for the
money and web 2.0 companies are making it easy.
*“Consumers continue to pay down debt and build up their
savings. There is little reason to believe that consumers will
give up their frugal behaviors in the short term. Consumers
will remain cautious, especially following their disappointment
with the slow pace improvement over the past year.”
* By Marcelo Tau, Principal at Booz & Company
http://www.strategyand.pwc.com/global/home/press/article/48816483

4. *
*People are eating more meals at home.
*92% of consumers have made some sort of changes in their
grocery shopping habits as a result of the recession.
*Recession has affected what people are buying, how they are
choosing and from where they are buying.
On food at home, 28% cut back on expenditures vs. 23% in 2009.
Consumers are switching towards less expensive brands, 39% on household
products(specially Private label products).
37% traded down on food at home.
http://www.strategyand.pwc.com/global/home/press/article/48816483

5. *
Compare products on the internet
Take advantage of in-store
promotions
Use more coupons from newspapers
Purchase fewer unplanned items
Use more internet/email coupons
Take advantage of radio/TV
specials
0 10 20 30 40 50 60 70 80

6. *
235
242
247
2006 2008 2009
Number of meals/person eaten at
home
Source: NPD Group’s 24th annual report on eating patterns in America

7. *
*Where to shop and What to Buy
I am more likely to stock up on
certain items if they go on sale
I am more likely to look for sale
prices throughout the store
I choose the store I shop at
specifically because it offers lower
prices on things I need
Price has become more important
consideration than convenience in
brand purchase
65 70 75 80 85

8. *
15.3 15.2
15.6
16.6
17
17.4
18.2
2005 2006 2007 2008 2009 2010 2013
Percentage of Purchase in USA

9. *
53
51
45 44
42 41
36
29
25
19 18 17 16
13
10
7 6
3
Percentage of Purchase Worldwide (Market share 2013)

10. *
*As food prices rose by 0.4%, it increases the
cost of cereal, fruits, vegetables. Dairy prices
have climbed 10.2%.
*This situation actually gave warehouse clubs
like Costco, Sam’s club and BJ’s which sells
everything in bulk an advantage.

11. *
* The third largest retailer in the US.
* During this duration its sales increased by 15% (86 billion).
* Membership base grown by 25%.
* " Wall Street has taken note. Warehouse club companies are considered some
of the most "recession-resistant" equity bets.
* Shares up by 21%.
* In past seven years its stock rose more than 200%.

12. *
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
2005 2010 2015 2020
Consumer Spending
Meat Bread & Cereal2 Milk, cheese, eggs Vegetables

13. *
*Women are still doing majority of shopping but men
have increased the trip share specially after 2004.
*At grocery stores, women spend and average of
$44.43 per trip, while men spend $34.81.
*At dollar stores and warehouse stores men are only
spending $3 and $5 less per trip than women.

14. *
* In 1992 approximately 7.9 billion coupons were cashed in by U.S.
consumers.
* By 2006 this number had declined to a mere 2.6 billion and stayed
at this rate for years.
* In 2008 with the recession, coupon use began to rise and reached
3.3 billion by 2009.
* Coupon use peaked in 2011 at 3.5 billion.
SOURCE: INMAR.COM

15. SOURCE: INMAR.COM
*

16. *
* 61% of households with income > 100,000 per year had used a
coupon within the last 6 months.
* 60% of shoppers use coupons in more than half of their shopping
trips.
* In the past there was a stigma with couponing that betrayed a
poor social status. Following the recession in 2008 and the
resurgence in couponing, this stigma is no longer relevant.
SOURCE: INMAR.COM

17. *

18. *

19. *
Have American changed the way they shop?

20. *
 Despite the positive trend in coupon redemption, people
may still believe that a deeply discounted good has an
inferior quality
 Customers can become “addicted” to discounts and may
perceive the normal price as a kind of rip-off.
 Companies must be cautious in how they employ
discounting and couponing strategies. Brand loyalty is
usually not built on a discount plan.

21. *
 Coupon redemption has become trendy and no longer carries a negative
stigma for the costumer.
 Downturns in the economy drive consumer to redeem more coupons as
bottom lines become more important.
 Brands should employ a cautious approach to coupon promotions to
preserve brand loyalty when the economy becomes more favorable.
 Consumer behavior towards buying has changed and they are not intended
to change that habit for long time.

22. *
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