The tightening of household budgets influences how much gets spent and on what. The necessities like food and household supplies are clearly being re-negotiated as people seek to economize. For many shoppers, the complex matrix that goes into deciding whether to buy or not is changing, the valence associated with these factors is shifting and we don’t know how it is shifting. Factors that are going into that decision matrix include these – are there others that might be particularly relevant to your product category?
1. Cost of the item – absolute, and relative to other brand choices in the category
2. Complexity of the decision
3. Necessity (entertainment vs. food)
4. How durable and how necessary the item is – might be willing to spend for a durable necessity like a washing machine more readily than for convenience foods
5. Strength of loyalty to this item and the bases for that loyalty