Consumers are spending, but on used goods, debt payments

By John Waggoner, USA TODAY

In this article, Waggoner expressed how consumers are currently dealing with the recession. It is apparent that people today are being more frugal with their hard earned money as they should be. Consumers would love to be able to stop buying and save our money; however, that is not feasible with our lifestyles today. People obviously have to continue to buy the necessities for ourselves and those people with families have to buy for their family's needs. This recession has had an impact on consumers they are realizing it is smarter to buy used rather than new in order to help their bank accounts. They are not only watching their spending, they are also repaying their debt. They are making it a point to get a handle on what they owe now rather than putting it off as future duties. According to Waggoner, "Money that might otherwise go to local restaurants or department stores is also being used to pay down debt. Consumer borrowing fell 2% in the first quarter, according to data released last week by the Federal Reserve. Resolving credit fell at a 6.5.% annual rate.  Repaying debt is a relatively simple way to increase disposable income and shore up finances. Overall, Waggoner's article provides a great deal of wisdom on how to get a handle on things during this recession and we can learn a lot from it. 

Sold! Bargain-hunters buying groceries at auction

By Michael Rubinkam, Associated Press Writer

In a recent article in USAToday.com, Rubinkam makes it clear that people are taking their bargain shopping to a whole different level. Shoppers are skipping the supermarket aisles for a far more cheaper method, auction circuiting.  The consumers do not mind if the items are past the sell-by date. According to the article, "Consumers seek relief from the recession and spiraling food prices, grocery auctions are gaining in popularity as an easy way to cut costs. The sales operate like regular auctions, but with bidders buying for dry goods and frozen foods instead of antiques and collectibles. Some auctioneers even accept food stamps." It is apparent that the auctioneers are taking advantage of this unique opportunity to rake in the money. The article provided different people who have held auctions and have had taken part in the bidding process. In particular, Kirk Williams from Pennsylvania had his first auction and was surprised at the turnout of 300 people. A lady who benefited from Williams auction was Cherish Francik and her statement was, "Most of my life, I've been a brand-name shopper. It was  a real quick change whose haul from the Williams auction included trail mix, honey-barbecue chicken nuggets and a spiral-cut ham. I guess it's sort of a thrill now to find something that tastes good and is the right price." Francik's short statement reminded me of the thrill I spoke about in one of my previous blogs. 

There is just something that draws you in about the thrill, the hunt of finding something for less. It is almost as if you have accomplished something that you were not sure that you could at the beginning of your shopping process. In reality, it is hard for someone to explain that feeling you get in words. I guess if you have yet to experienced it, then I challenge you to do so this week! 

Source Derogation

Source Derogation is a thought process that simply takes place in your mind. You put down the source being advertised. You do not give the product a chance; you do not believe in it at all. This term reminds me of the infomercial that I see daily, the "Bump It" Infomercial! If you have yet to see it (which does not seem possible) it is a commercial that does everything and more to make you believe that you need a small hair thing that is designed to give you the bump that everyone so desires now a days. By the end of the commercial they have the viewers thinking that they can no longer take a comb and tease your own hair to make the bump yourself. It is evident that throughout the commercial their goal is to make the viewers believe this homemade object is a necessity. I however, did not fall in to this trap of theirs...I instead have and continue to make fun of this infomercial every time I see it! It is clear evidence that people will go to any length to make money these days. 

The sleeper effect

The term we discussed a few weeks ago in class, the sleeper effect is incredibly true. The sleeper effect is when a person views a source and develops a dislike for the product; however, the message the advertisement is conveying still gets across to the person effectively. This term is the perfect example illustrating how an annoying commercial still gets its message delivered. It just goes to show that just because someone does not like something does not mean that they do not remember the message. In fact, the commercials that irritate me tend to stay on my mind the longest. For example, the Burger King Commercials with the guy dressed up in the king costume with the big ugly face mask annoys me so much! I will take a minute to show this strange looking king of burgers... 

The mask is not only weird, but it is freaky as well!l Every time the commercial comes on I want to turn the channel. However, I do not change the channel, rather I fantasize about a whopper for the rest of the day! Most of the time I do not run to Burger King; though, sometimes I will  give i and purchase one of those big juicy burgers! 

The thrill of the hunt!

I mentioned a few blogs ago how my best friend Holly and I took a trip to West Virginia to go shopping. I stated how my experience reminded me of a certain term we covered in class, impulsive buying. Holly and I's shopping experience at Gabriel Brothers (also known as Gabes) also reminded me of another thing we discussed in class. I never realized how much I enjoy the thrill of the hunt until that unique shopping experience. I have in the past gone to Gabes before to see if they had any good deals going on. However, that fateful Friday, I had a whole different experience with Gabes! From the moment we walked in to the minute we walked out of the store, I was on a hunt. I wanted to find the best deals no matter how long it took me. I got such a thrill from going around the store looking through each rack of clothes looking for things that looked cute or I thought I had to have. The best part of it all  was looking at the price tag and seeing $4.99 or $6.99! However, those small bargains added up rather quickly and I soon realized that once I got to the register. I convinced myself that I was still saving money because I would have spent so much more if we would have went to one of our favorite stores, Forever 21.  With that said, I did spend a lot, but I also got a lot too!

Recession? Pass the Spam and chocolate

BY DEB RIECHMANN ASSOCIATED PRESS WASHINGTON

Although this recession has taken a toll on many things, it has also assisted in the increasing of sales of certain products. People are being more cautious shoppers in hopes they will save more. They are not avoiding their shopping altogether, rather they are seeking discounted items. Instead of going into the typical department stores they once shopped at they are making it a point to shop at Wal-Mart and Dollar Stores. They are doing this so they can save their money while still being able to provide for their family's needs and wants. With this being said, I have to admit I am also jumping on this bandwagon. I have found myself going to Big Lots to not only pick up items here and there but also to pick up groceries as well. I have found that it does do less damage to my bank account. In addition to shopping at Discounted Stores, I have found that when I have to go to Kroger or Wal-Mart for certain items, I look for the best deals. I was so proud of myself for going grocery shopping at Krogers this past Sunday and only spending $30! Again, it was all because I went up and down the aisles hunting down the bargains. 

Monster Cable lowers prices during recession

By Jefferson Graham, USA TODAY

The economy has not only taken a toll on consumers, but it has affected stores across the country as well. Of course, that is expected dealing with the circumstances...once the consumers realize they can no longer afford what they once were capable of buying, the stores become aware that sales are quickly decreasing! With sales going down hard and fast, certain stores are closing just as fast as those sales are declining. For example, Graham stated in his article, "Consumers snapped up premium cables for $100 and more when purchasing expensive new flat-panel TV sets and home audio equipment. Then the recession hits. TV sales stalled. Monster lost one of its top retailers---Circuit City, which closed 567 stores."  The founder, Noel Lee has made the executive decision to reduce the prices on top-of-the-line cables for high-definition TVs. I fully agree with Lee's choice regarding the cables for TVs. If people see stores adapting to the economic changes then they may be more susceptible to go along with them and purchase from the stores dealing with the change. 

Survey: Americans reclassifying luxury, necessity in recession

By Sharon Jayson in USA TODAY

As the economy is changing, so are the attitudes of consumers. It is evident that money is quickly becoming scarce in our nation today. Whether it be people being fired or being laid off, or companies not hiring because they no longer have the money to employ as many as they once did. Because money is running low today, people are quickly becoming aware that it is vital that they do not spend as much as they have in the past. For instance, people used to believe they had to have certain appliances before the recession and now they are changing their thoughts and their ways. In the article I read that A Pew Research Center did a survey of luxuries and necessities. Jayson said the results of the survey were, "68% said a microwave was a necessity, now that's 47 %. 52 % say a TV is a necessity today, down from 64 % in 2006."

In addition to the survey done by the Pew Research Center, Pew researchers requested that consumers would share their thoughts on the struggling economy. The following is what they said, "27% reported they or someone in their household had lost a job or been laid off in the past year, 80% have cut back, and 20 % said they're doing more work in and around their homes." Although consumers are cutting back more these days, they still strongly believe that the cellphone is a huge necessity along with the Internet. I fully agree with them because if you or one of your family members, or friends is laid off then it is incredibly important that you have access to a phone where you can be reached at at all times. If you are seeking employment, it is imperative that the potential employer be able to reach you at all times. Also, if you are currently searching for a job, there is no better way than to do that than on the Internet. Once you receive that next job, then you are well on your way to picking up where you left off.  Having financial stability will enable you to feel free to shop without worrying whether you can pay the bills. 

Impulse shopper vs. impulse buyer

Thanks to Chapter 10's Buying and Disposing, I have gained the knowledge that is  definitely needed when being a shopaholic  As they say, the first step to the problem is admitting it. After reading about consumer's behavior regarding the in-store decision making, I learned a great deal of information that I take with me every time I go shopping now. Take for instance, one of my best friends, Holly and I went to Parkersburg, WV on Friday. We had every intention on our journey there of going to as many stores as we could in the short time that we were going to be in town. However, we only made it to one store and that store was Gabriel Brothers. The minute we walked in there we knew we were going to be there for a while.  I did not imagine we would be there all day long, though that is exactly what happened. Holly and I were definitely partaking in what I like to call, impulse shopping. We did not intend on finding so many eye-catching items, but again that is what happened. As we walked through the store we picked up anything and everything that caught our eye and placed it in our carts. Once our carts became incredibly full, we made our way to the fitting rooms. We were praying that most of the items we picked would not fit so that it could prevent us from putting a huge dent into our bank accounts. Thankfully, I ended up being an impulse shopper rather than buyer! Before  I made my way to the cash register, I knew I had to give myself a limit and weed out the clothing items that I did not have to have. Because I made that decision, I walked out of the store with a clear conscience and knew with out a doubt that I had made the right decision. With that said, the moral of the story is, it is far better to be an impulse shopper than to actually go through with the purchase and be an impulse buyer!  

 

Wal-Mart, Target lead encouraging retail report

By Anne D'Innocenzio, AP Retail Writer

In USAToday.com, The month of April ended up being a lucrative month at many different store across the country. Some say that it could be the weather that is influencing consumers' behavior. I have to admit I fall into that category sometimes. There is something about the way my mood changes when the sun is shining and there is not a cloud in the sky. I cannot help but to want to be out and about and that means out shopping. When I shop it normally leads to some damage to my checking account, however living in Athens these last few years have been good for me. Because there is no real mall here in Athens, it is hard for me to do real damage to my bank account making that a good thing in disguise. 

Though, there is a Wal-Mart in Athens and I do tend to shop there a lot more than I want to. 

I consider Wal-Mart to be the store that best captures impulsive shoppers. This spontaneous shopping is so easy to do in Wal-Mart because Wal-Mart has everything! I find myself going in there for two items such as a gallon of milk and contact solution; however, I walk out with five more items. Once I start going down the aisles, I think to myself I need this or want that. It is apparent that I am not the only consumer falling into Wal-Mart's trap. According to the article, "Wal-Mart reported a stronger-than-expected 5% rise in sales at U.S. stores open at least a year." After learning about this in class, I am more aware of my behavior and how it is more about me partaking in unplanned buying which is when I am reminded to buy something. Unfortunately, this happens too often when I shop at Wal-Mart because Wal-Mart has food, clothing, shoes, and once again everything I need. 

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