As the American workforce continues to struggle with the lack of jobs, the overwork of those that do have jobs, and the lower salaries coming out companies as they ride out a difficult economic time, one of the many effects can be seen on the shelves of America’s grocery stores.
U.S. consumers are reaching into their wallets and shelling out for the brands they desire less than they were just four years ago, according to a new research report from comScore titled, “The Effects of the Recession on Brand Loyalty and ‘Buy Down’ Behavior.”
“Buying down” is, of course, the fine art of buying a lower-priced brand than the one you actually desire, a situation that is becoming more and more the norm. In 2008, the study shows that 54% of respondents bought the brands they wanted.
This year, though, that number is down to 43%. Sorry to hear it, America.[more]
“In the aftermath of the recession, and with unemployment remaining stubbornly high, U.S. consumers have been feeling the pressure to spend less and save more, resulting in increased buy down behavior for CPG (consumer packaged goods) and other product categories,” said comScore director Doug Crang in a press release.
“Our research shows that over the last four years, not only are more consumers switching from their preferred brand when others are on sale, but they are regularly buying less expensive brands in an effort to save money. These economic conditions pose a real threat to premium brand market share, as consumers view cheaper brands, often private label, as a more affordable and necessary option during these hard times.”