Shopping Behavior
The shopping experience for the typical American has changed dramatically over the last few years. Due to economic circumstances plaguing both the global and domestic economy, shoppers are now more apprehensive about their purchasing behavior. Likewise, other economic circumstances such as the decreasing trend of the average Americans income are also contributing to the extreme bout of pessimism the nation is currently experiencing. It is no secret that the economy is in shambles with unemployment around 8%. Many states such as Florida and Nevada are experiencing unemployment rates still near the 10% range. As such, shoppers are attempting to save more money and are foregoing luxury purchases until they feel more secure in their finances. From my interview, I also realized the prevalence of government intervention on the overall sentiments of the average American shopper. As I will allude to in the following pages, American shoppers are fearful for their future. Many feel as though they have not adequately saved for retirement or saved adequately in the event of long-term unemployment. As such, their shopping behaviors indicate the extreme bouts of pessimism within the overall economy today.
General Shopper Sentiments
To begin, I believe it prudent to discuss the general sentiments of the average shopper within the context of the economy as a whole. The shopper I observed and interviewed was located in a Wal-Mart shopping center. Upon my interview with the customer, it was revealed to me that shoppers are now trading down as a result of economic uncertainty. Many consumers are afraid for their financial futures, and their shopping behavior reflects such pessimism....
Here, as it is customary of many Wal-Mart customers, individuals are looking for the best bargain. They often care more about the price of a particular product than of the actual quality of the product itself. This was evident with both my interview and observations of the individual. In particular, commodity-based products such as shirts, socks, and other forms of undergarments are purchased primarily on the basis of cost. These products, as the shopper indicated to me, only provide a marginal benefit to the customer. For this particular shopper, there was no aesthetic appeal or brand loyalty in regards to commodities. The only factor to her was the price of the item she purchased. Believing Wal-Mart to have the most competitive prices, she instantly gravitated to the lowest priced item relative to the quantity provided.
The shopper also revealed another truth about the shopping behaviors of the average American, which is the implication of inflation on future purchasing power. The shopper I interviewed was particular concerned with government spending and how that spending would affect the purchasing power of her hard earned wages. The shopper indicated to me that she is a sales associate at Macy's Inc. where her pay is structured based on commission. As such, her wages can vary dramatically based on the underlying business conditions present within the retail industry. What's important to note is that irrespective of what she earns, the value of each dollar of wages will inevitably fall over time. As such, she purchased more than what she needed in an effort to avert the influence of inflation of her purchasing power. She anticipated higher prices in the future, and as a result…
