“Frugal Behavior Will Be Norm for Years to Come”
In its June 14, 2010 issue, MMR Magazine, Booz & Company Partner Matthew Egol (North America) says that American consumer behavior is now distinguished by a “new frugality” in the wake of the recession and two consecutive years of declining per capita income. “Frugal behavior is now considered trendy by many shoppers, and will continue for years to come,” Egol said, “In this changed environment, marketers need to develop deeper insights into shopper attitudes and behaviors in order to better align their product, pricing and marketing communication strategies.” Egol was responding to the findings of Booz & Company survey, which based on an October 2009 survey of 2,000 consumers, described pervasive retrenchment in consumer spending across numerous categories and suggested that heightened frugality may have become a learned behavior. The trends have implications for marketers as well as shoppers, said Booz & Company Partner Andrew Clyde (North America): “As the economy recovers,” he said, “marketers need to better target their strategies to preserve the value of existing brands and avoid destroying value through too blunt a competitive response.”