05 Mar

10 Key Attitude Shifts Caused by The Great Recession

This most recent recession has been worse than the others that we’ve experienced since The Great Depression. The good news about this is that it appears to be causing a shift in attitude, values and spending habits which could last even after the recession comes to an end. The way we eat, entertain ourselves, think about spending and decide what has value has all changed in recent years.

Here is a look at ten key attitude shifts that have taken place over the past two years as a direct result of what has been dubbed The Great Recession:

1. People want to spend less. Per capita spending has decreased over the past two years, the first time that this has occurred since The Great Depression. Low-income women, in particular, are spending less but this attitude that we must spend less than before pervades all different socio-economic groups.
2. Frugal behavior is now the norm. A few short years ago it was considered “alternative” to live frugally. Today that’s just not the case. The average person is making frugal choices now. An in-depth study of the effects of The Great Recession shows that “two-thirds of consumers frequently use coupons, value price over convenience, and believe saving is more important than spending”.
3. Brand names don’t matter anymore. More than half of the people taking the aforementioned survey said that they would prefer to get the best price rather than the best brand. However, there are some categories of consumption where this is less true; people still like brand names when it comes to big ticket items like consumer electronics as well as vice-based items like tobacco and alcohol. This could affect the way that small business marketing develops over the next few years since there will need to be less of an emphasis on branding.
4. Consumers have learned a lot about what they really need. Overall spending on non-essential items is where people have stopped spending their money during this Great Recession. People are spending less on items like new clothes, expensive alcohol and home improvement. A lot of the things that we thought we needed have come to be recognized as things we just wanted. A major shift in our priorities has taken place as a result.
5. We appreciate the small indulgences more. Although people did reduce their spending on non-essential items, they did continue to spend on some of the small indulgences. For example, there has been little decline in spending on beauty supplies. As we spend less, we begin to really appreciate the little indulgences that we do allow ourselves. This greater appreciation for the small things in life is really bringing a lot of daily joy to people even in these tough financial times.
6. People want to stay home. One of the things that a lot of people have cut back on in order to save money is out-of-the-home entertainment. This includes dining out, going to expensive events and even seeing movies in the theater. As we have spent more and more time at home with our loved ones, we’ve come to realize what a joy this is. Even as the economy improves, this attitude that it’s nice to just stay home with the family sometimes is likely to stick around. This applies to travel habits as well, with more and more people taking “staycations” instead of traveling around the world.
7. Discount codes, coupons, vouchers and mobile savings are all super important. This is one industry that has grown considerably since the start of this Great Recession. People who didn’t ever look at discount codes before now use them on a regular basis. They’ve become a truly integrated part of our shopping experience.
8. We think before we buy. We’re a lot less likely to indulge in impulse purchases these days. More importantly, we do a lot of research about items before we buy them. Approximately eighty percent of people surveyed did research before buying food, beverages, health and beauty products or products for the home. This tendency to do our research before doing our buying is probably going to last even after our bank accounts get bigger again.
9. We eat differently. One of the areas in which many people have had to cut back on spending is groceries. The steps that we have taken to save money on groceries has resulted in a true shift in the way that we experience food. For one thing, more people are eating fresh produce and forgoing meat and packaged foods. They’re doing it to save money but it’s causing a major shift in our overall diets. People are also eating locally, eating in-season foods, shopping at farmer’s markets and even growing their own gardens. Over 50% of people responding to the aforementioned survey said that they like to grow their own vegetables when they can.
10. A long-lasting commitment to change. Perhaps the biggest attitude shift that has occurred because of this recession is that people don’t want to go back to their old ways of looking at money. During past recessions, people were just waiting for the problem to pass so that they could get on with their usual way of living. However, people today report that they expect their frugal habits and new approach to money to stick around for a long time to come.

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