Understanding the

Postrecession
Consumer
Flatters and Willmott
Group 1

The Prerecession Consumer

Prerecession Consumer behavior is a product of more
than 15 years of uninterrupted prosperity
Real disposable income increased
Inflation was stable
Therefore new appetites emerged
Consumers could afford to be more curious and
purchase more

8 Post Recession Trends and

Trajectories

Dominant Trends
DEMAND FOR SIMPLICITY:
People felt overwhelmed before the recession
Demand for trusted brands
Post recession, customers continue to buy
simpler offerings
Trend continues into the long term
FOCUS ON THE BOARDROOM:
Spotlight on corporate governance had been
building for years
Board and its members under scrutiny as taxpayerbased bailouts increase
Excessive pay to top profile employees questioned
Government intervention will intensify
Loose velocity as peoples need to punish reduces

Advancing Trends
DISCRETIONARY THRIFT:
Need to reduce the expenditure i.e., be more thrifty
Mounting dissatisfaction with excessive consumption
Preference for a less wasteful life
Recycling more, buying used goods, green
consumerism
Long term: consumers find practical satisfaction

MERCURIAL CONSUMPTION:
Prerecession fickle consumption led to erratic
loyalty
Easy move to cheaper alternatives
Technology and social-network enabled
strategies increases this trend
Customers are ready to shift loyalties and
navigate between options

Slowed Trends
GREEN CONSUMERISM:
Increase in demand for green products and
environmentalism
Waste reduction: Saving electricity, recycling, buying
less
Badging: Displays of green credentials
Reinforced by demand for simplicity
Slowed during a recession but picks up in the long
run
DECLINE OF DEFERENCE:
Prerecession, respect for authority was on the decline
Decline of deference is driven by mounting skepticism
Large recessions reverse this trend in the short run as
customers look to the government sand businesses for
a recovery
Long run continued decline as authority inevitably fails
to meet expectations

Arrested Trends
ETHICAL CONSUMERISM:
Free trade and locally sourced products are more
expensive
Ethical consumerism takes a backseat
Red Cross and charitable spending is less important
Post recession, consumers first meet their own
unmet needs
Long run recovery in altruistic spending

EXTREME-EXPERIENCE SEEKING:
Prerecession: Desire to accumulate experiences
Cheaper experience connected with wholesome
lifestyle might resume
Exotic and frivolous experiences drastically
reduce
Simplicity and discretionary thrift suggests that
this is unlikely to rebound in the long run

Conclusion
The economy is unstable and consumers are fickle
Consumers through the recession will carry these
attitudes and behaviors through their lifespan
Consumers below age 35 will continue to be thrifty,
simplicity seeking, green consumers
Companies to keep this in mind while delivering
products to these customers

Thank you