Consumers Permanently Change Behavior Due to Fuel Costs

[The Sushi Bandit]

http://www.gourmetretailer.com/gourmetretailer/headlines/article_display.jsp?vnu_content_id=1003253005

A new Yankelovich study says consumers have permanently changed their shopping habits as a result of the high prices they had to pay at the pump, reports Brandweek.

Marketers must not only acknowledge this new frugal customer base, they need to strategize accordingly for the next inevitable spike. "The most recent gas price upheaval may be coming to an end, but another surely awaits," reads the report. "Smart marketers will use this period to plan." A new report from Information Resources Inc., Chicago, supports the Yankelovich findings. IRI predicts gas prices will rise again in spring 2007 and recommends packaged goods marketers should "plan for future periods of price escalation."

Planning needs to recognize the metamorphosis today’s shopper has undergone. According to Yankelovich, the profile of today’s consumer is such: 67 percent of shoppers will shop for several items at one store instead of driving around; 66 percent make price comparisons; 64 percent do research before making a purchase; and 63 percent are waiting for sales.

<snip>

Unlike in the past, shopping habits will not shift back to the norm, said Lexi Hutto, senior consultant at Yankelovich. "There is a prolonged bias. Everything won’t snap back to the way it was. It’s like a rubber band that’s been stretched too much."

<snip>

There is good reason for concern. The average American household will spend 5 percent of its pretax annual income on gasoline, according to Yankelovich. IRI estimates an extra $535 was spent on gas, per household, this year.

[pwb]

1. gas prices are down because all of us have cut back on its use

keep it up America. i bought a fuel efficient car, consolidated trips, and have cut back on discretionary spending. like everybody else i find myself hunkered down in my house a lot lately. thanks bush...

[eleny]

2. Welcome to DU!

Our habits are in line with yours except we haven't purchased a new vehicle, yet. The internet is my first stop when considering making most purchases to comparative shop and research.

[neoblues]

3. Consumer Behavior is Permanently Changed--At Least for a Few Months

Seems like wishful thinking to me--the idea that the rubber band has been stretched too far to snap back. So long as gas is cheap, a significant percentage of Americans are going to use it like it's going out of style (and it may be).

[pwb]

4. you think $2.55 is cheap?

then bush and rove got your number. $1.50 is what it was before bush invaded Iraq and disrupted the world oil supply.

[neoblues]

5. Everything is relative... and I don't consider it cheap...

Everything is relative; remember $3 and that's VERY "cheap" by world standards... However, personally, I don't consider anything over $1 to be "cheap". How relative I am; I personally miss the $0.23 (+/-) cents per gallon of years gone by... now that, was indeed cheap--until OPEC woke us up and changed the world. Oh well (Oil well)...

It sure is nice to know, though, that you're out there--ever ready to remind others when they've been taken in by the unholy Bush/Cheney/Rove trinity. What would we do without you? We'd probably be mindless, unthinking Rove-bots... Oh.my.God... the very prospect is too horrible to contemplate! Now I'm all afraid... and being afraid means I'll fall into even more of their traps (begin:sarcasm) since everybody knows they are the only source of security for our nation... (duh)(don't everybody knows that?)(end:sarcasm) (note: for the careful reader, other instances of sarcasm may be present) So, please promise you'll be there to keep me from becoming one of the Republican collective or worse, doing their bidding without even knowing. I just know you will... (sigh) It's okay, I'm feeling better now--secure in the knowledge that I've been saved and corrected from my waking delusion that gas prices are now cheap (but--but the all-knowing TV News keeps telling me how much gas prices have dropped?)(thank the Goddess I scarcely ever watch that source of clever "conservative" deception). Anyway, thanks again--for no doubt I had also forgotten that the IRAQ war had raised oil prices--and who knew that Bush was behind our invasion of that country and lied through his teeth directly to the American People in order to bring it about (I mean really; who could have suspected--after all, the man is apparently our un-duly "appointed" President, and "real" Presidents wouldn't do such a thing)? Still, I suppose you're right and I almost fell for it (I almost won the Lotto too, though I didn't get any of the numbers)... How sad, our very own Pretend President actually lied to us... We wouldn't stand for such a thing, would we? Surely not? (don't call me Shirly...)

See, now that was a fine example of relativity... It was a relatively excessive and overblown, even tiresome response to a relatively minor comment, but at least it was relatively thorough. (don't mind me, it's probably just the medications the government is putting in the water :tinfoilhat: )

[pwb]

6. too long ///but your welcome