Are consumers downshifting for good?
Two studies came out this past week in bang-bang succession. They go beyond the observation that consumers are cutting back on expenditures in the face of economic stress and uncertainty. In fact, they suggest that some of these changes may be permanent. The Pew Research Center measured a number of categories for a chart called “Belt-Tightening in Bad Times.” Here’s a look: * 57% bought less expensive brands or went to discount stores * 28% cut back on alcohol and/or cigarettes * 24% reduced or cancelled CATV or satellite TV subscriptions * 22% reduced or cancelled a cell phone plan * 21% made plans to plant a vegetable garden * 20% took over yard work/repairs formerly contracted out * 16% sold items in garage sale or over internet * 10% had a friend or relative move in * 2% rented room to a boarder Pew noted that the shifts have come “across-the-board, among adults in all income groups and economic circumstances — perhaps suggesting that consumer reaction to the recession is being dr
