What does a down economy do to consumer behavior? Most obviously, it makes people less eager to open up their wallets. According to Janelle James, vice president for global marketing at advertising agency Leo Burnett Worldwide, recent research shows that 80% to 90% of people are willing to trade off or trade down when it comes to shopping. Moreover, said Chris Kuenne, CEO of the marketing strategy firm Rosetta, many of those customers might not bounce back with the economy. He likened the effect to "a one-way membrane--it's not like everyone's going to go back to work [when the recession ends] and become much less value-sensitive."
Read the article published in Knowledge@Wharton here.
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