Discuss the Impact of the Recession on Consumer Behavior and on Essay

dispute the Impact of the Recession on Consumer Behavior and on Marketers - Essay ExampleAt the same time, marketers be resorting to new promotional campaigns in order to remain competitive and gain consumer attention in the demo of this current economic downturn. Food and technology Statistics point that six in 10 consumers have trim back the volume of frequency as it pertains to eating-out in restaurant environments (Bainbridge 2010). As a result, especially broad in the pizza restaurant industry, marketers have alterationd their promotional activities to include vouchers with significant pricing discounts (Bainbridge). Where once major companies in this industry, such as Pizza army hut, used psychographic segmentation and targeting to gain attention and loyalty, they are finding it to a greater extent difficult to compete especially when their products carry high worth tags over competition. Companies like Pizza Hut once had well-established consumer segments that were de voted to the brand and were able to use rather low-cost marketing and higher price methodology to ensure aligning in terms of quality. Today, admitd, the recession has created price wars that continue to erode positiveness especially with more consumers eating within the home and avoiding the high costs of restaurant eating. This is also noticeable in the fast food industry with new promotions being added to traditional menus, such as McDonalds with its dollar menu variety. However, this marketing effort is not bring the type of profit results marketers had once undergo early in the recession. Today, new freebie offers and Internet-based incentives coupons are becoming the norm for many consumer segments (Glazer 2009). This shows a alternate in consumer behaviour toward active searching in the consumer search process to identify coupons before they exit frequent even their favourite restaurants. There is clearly a value-driven methodology in consumer groups that change their acquire behaviours and choices. This is even apparent in how grocery stores market their food products, with the new value-based consumer searching for low-cost products. Statistics indicate that 53 share of todays recession-minded consumers are buying fewer organic products and 50 percent are even turning toward generic or private label brands (Frozen Food Age 2008). fundamental products and well-known product brands used to be the driver for significant profitability in the grocery industry, however the recession is changing the supply chain to identify new value for consumers in order to keep up their business. Morrisons, one of the largest grocers in the UK, has control over much of its supply chain and is therefore able to movement out the recession successfully by using new promotional tactics. The store is able to provide fresh food options at a much cheaper price than competition and uses this fresh quality positioning to sustain higher profitability than other markets without control over their purchasing system (Mortimer 2009). However, it shows that the consumer propensity to change from their loyal and trusted brands to generic and private label brands and how it has affected total marketing and purchasing/ diffusion strategies. The grocery industry has identified that 44 percent of shoppers now consider private label products to be on par or even better than long-standing trusted brands (just-style.com 2009). This is a danger to