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They also spend in different ways due to the recession. As borrowing becomes harder, consumers are more likely to make spending sacrifices. “People are clearly starting to get a sense that things are not as easy financially as they once were,” said Peter Ayton, Chief Statistician at Mintel. Recession not only affects how much consumers have to spend, but also how they behave.
This project investigates changes in womens spending habits and examines how they will change in the future. The project considers a number of essential questions. Will womens spending behavior change when the recession ends? Or will they revert back to their old spending habits? Will consumption be back to the same level as years past? Will women spend less, delay purchases or trade down to cheaper alternatives?
Economic recession can be defined as a significant decline in economic activity lasting more than a few months (NBER, 2009). The United Kingdom has been in recession since July 2008. This was prompted by many problems, including:
The increased levels of unemployment and high levels of personal debt, mean consumers are feeling the squeeze. During recession it’s a normal propensity of consumers to cut down on spending and save money. The decline in consumers spending is due to decline in consumer confidence levels. The decline in confidence levels may be caused by unemployment or a financial crisis. Therefore, businesses are forced to lower their prices to attract consumers. When prices decrease, consumer spending capacity increases.
In terms of profit and human capital, the recession has negatively impacted many industries. Prominent among the industries hit by the recession is the clothing industry. The UK retail clothing & footwear market was worth an estimated £48.55bn in 2007 (Clothing HYPERLINK "http://www.researchandmarkets.com/reports/594454"&HYPERLINK "http://www.researchandmarkets.com/reports/594454"
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The companies found it hard to overlook as well as evade the consequences of globalization in these third world countries and now keeping an edge has become a permanent fixation for these companies no matter which channels and courses are taken. No doubt that such global advancement has revolutionized the retail sector as well.
e UK economy went into recession. It led to decline in output of the economy as well as increase in the unemployment rate. There has been decline in the real output by 6.4 per cent. However, in the second quarter of 2010, it was apparent that GDP had grown by 1.9 percent.
Once predictable behaviour is now being replaced with a new type of consumer that is constantly seeking value in nearly all elements of product variety. This is making the process of marketing and advertising significantly difficult in an environment where competition is high, especially in areas of food consumption and technology consumption.
Man has always been an inquisitive and innovative creature and when faced with the challenge of suffering from cold, heat, thunderstorms and the waywardness of nature, he emerged with a solution to combat it. Clothes were the answer and they soon became a symbol of cultural and social representations.
Changes in investment activity, employment, and prices may be a recurring and frequent manifestation of economic development in a competitive and dynamic economy.
Consumer’s spending has profound and often unappreciated impact not only on the lives of the
simple terms, recession is when businesses can no longer grow or expand, the GDP diminishes for two swapping quarters and the rate of unemployment rises as the prices of housing come down.
There are many factors which can contribute to the falling of economy into a recession,
Most declines have been trivial in the regional and national levels, with the exception of a few serious cases like the East Asian crisis of 1997 (Radelet and Sachs, 1998). It triggered short and long standing effects in nations,
There is no doubt that Bourdieu talked on many aspects of the society. One salient feature of Pierre Bourdieu’s works was consumer behavior, in particular, the tastes and preferences of consumers and how they demonstrate people’s social class and status in society. According to Pierre Bourdieu choices that people make with regard to consumption.
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