The Connection between Consumer Behaviour and the Economic Downturn
Although all participants in these economies experienced significant changes, consumer behavior changes form a critical indication.An economic downturn in the North Atlantic and Europe has seen consumer buying patterns change from big-time spending to limited spending, even though consumer behavior may be influenced by other factors such as cultural beliefs. Changes in consumer behavior basically entail the variations in the process a consumer uses to make a purchase, use, and disposal decisions, alongside influential factors such as economic progress with regards to product use and purchase decisions. Consumer decision making follows a step-by-step decision-making process that involves prospective consumer’s need recognition, alternative evaluation, actual purchase, and then post-purchase behavior (Lamb, Hair and McDaniel, 2010, p. 189). However, this decision-making process is influenced by a number of factors such as cultural norms, purchasing power, product quality, and supplier marketing strategies among others.Households, being the perennial consumers, consider the economic crisis as a cause of the alarm and have started taking a more cautious approach when it comes to spending for the household. More so, household saving levels allude to a relaxed or cautious approach towards future economic possibilities with regards to general economic trends. An economic downturn in Europe and North Atlantic has seen an accelerated return rate to household traditional norms of borrowing and saving that constitute a major driving force behind consumer behavior. Consumer behavior changes among individuals and households basically follow the income labor dynamics that have been largely influenced by economic downturns. Spending, saving, and borrowing decisions by individuals and households can, therefore, be attributed to the economic downturn in Europe and North Atlantic.Consumer behavior during the European and North Atlantic crisis has presented a wide range of economic uncertainties and hardships to consumers whose buying patterns are dictated by perceived risk.