What can psychology do to turn consumer confidence around?
The Consumer Research Center defines consumer confidence as a measure of the level of optimism consumers have about the performance of the economy. A monthly survey of about 5,000 households is used to look at confidence in current conditions and the future. When consumer confidence is low, people spend less money and borrow less. This contributes to a spiraling negative effect throughout the land. While many businesses and individuals are flush with cash, they will not spend it, hire new people or buy new equipment or household products because they are uncertain about what to expect in the future. According to many, the crux of this is a fear of uncertainty, and Wall Street hates uncertainty. Many years of psychological research indicate that humans have a difficult time dealing with uncertainty and a sense of being out of control in their lives. These emotions are associated with increases in health and psychological problems. People get into survival mode and start constricting the
