Consumer Behavior Research Paper
Consumer Spending
During this past years spending was not a word used on people’s conversation. Prices have been rising like crazy and people have not been spending a lot. The recession was one of the reasons consumers spending decreased. Prices started rising and unemployment rate was increasing. At the end of 2010 and at the beginning of this year people were spending little by little, so the consumer spending is increasing slowly. Everything is a cycle, which means that we all depend on each other. If someone is not doing well it can affect me in one other way.
America has been hit by what has been called the late 2000s recession. “The collapse of the housing market really set this one off on a bad note, and it, coupled with bank collapses in the U.S. and Europe, have caused consumer confidence and credit availability to plummet to new lows” (“United States Economy”). During the recession consumer spending decreased, because of a lot of reasons. One of them was the unemployment. The rate has increased up to 15 percent. Now the unemployment has decreased a little, but California and Florida both have the biggest unemployment rates of the country.
Also prices were starting to change, which will be another reason why consumer spending decreased. “Recreational-vehicle maker Winnebago Industries Inc. blamed gasoline prices as it watched sales fall in its second quarter” (Batter and Sparshott). One of the biggest changes of prices was gasoline. Gasoline prices jumped 4.6 percent week on week. Another thing were materials like fabrics, metal and wood raised their prices, which means that everything that uses those materials will also increase their value. Big companies started to buy their small competitors. “Now, retailers don 't want anyone to get between them and their customers” (“Everyday higher prices”).
This year we are beginning to see the light little by little. Consumer spending is increasing. Instead of saving, people are starting to spend, but they
During this past years spending was not a word used on people’s conversation. Prices have been rising like crazy and people have not been spending a lot. The recession was one of the reasons consumers spending decreased. Prices started rising and unemployment rate was increasing. At the end of 2010 and at the beginning of this year people were spending little by little, so the consumer spending is increasing slowly. Everything is a cycle, which means that we all depend on each other. If someone is not doing well it can affect me in one other way.
America has been hit by what has been called the late 2000s recession. “The collapse of the housing market really set this one off on a bad note, and it, coupled with bank collapses in the U.S. and Europe, have caused consumer confidence and credit availability to plummet to new lows” (“United States Economy”). During the recession consumer spending decreased, because of a lot of reasons. One of them was the unemployment. The rate has increased up to 15 percent. Now the unemployment has decreased a little, but California and Florida both have the biggest unemployment rates of the country.
Also prices were starting to change, which will be another reason why consumer spending decreased. “Recreational-vehicle maker Winnebago Industries Inc. blamed gasoline prices as it watched sales fall in its second quarter” (Batter and Sparshott). One of the biggest changes of prices was gasoline. Gasoline prices jumped 4.6 percent week on week. Another thing were materials like fabrics, metal and wood raised their prices, which means that everything that uses those materials will also increase their value. Big companies started to buy their small competitors. “Now, retailers don 't want anyone to get between them and their customers” (“Everyday higher prices”).
This year we are beginning to see the light little by little. Consumer spending is increasing. Instead of saving, people are starting to spend, but they
Cited: Bater, Jeff, and Jeffrey Sparshott. "Consumer Spending Keeps Rising." The Wall Street Journal. 29 Mar. 2011. Web. 17 Apr. 2011. "Everyday higher prices." Economist 398.8722 (2011): 68-70. Academic Search Premier. EBSCO. Web. 25 Apr. 2011. Huffman, Mark. "Gas Price Increase Slows As 2011 Begins." Consumer Affairs. 07 Jan. 2011. Web. 15 Apr. 2011. "Jobless Rate Falls in Most States; West Still Lags." The Wall Street Journal. 19 Apr. 2011. Web. 23 Apr. 2011. "United States Economy and Global Economic Recession." Recession. 16 May 2010. Web. 15 Apr. 2011.