EVALUATING PERCEIVED CONSUMER RESISTANCE

Evaluating Perceived Consumer Resistance For High Street Brands In Economic Downturn

Table of Contents

Introduction3

Objectives5

Proposed Lietarature Review5

Proposed Methodology13

Research Rationale15

References17

Evaluating Perceived Consumer Resistance For High Street Brands In Economic Downturn

Introduction

The GFC, began in 2007 in USA mortgage and financial sector, then affected all sectors, such as: the oil industry, automotive industry (McCracken 2009), food industry and others sectors. As result to this crisis, consumer faces daily challenges related to his financial and material safety, increase of unemployment rate, fluctuations in consumer prices, restrictions in loan accessing, fluctuations in currency exchange rate, etc, (Richins 2004) all these affect the consumer attitude in the consumption and purchasing process. Economic literatures mentioned that the rational consumer use disposable income to maximize the benefit of goods and services consumption and the consumer behavior is affected by two factors: the prices of goods and services, and disposable income. If there is any change in these factors, the consumer change his behavior and try to re-allocate of income and expenditure to reach a balance and maximize the benefits, (Hussein Majid, Saeed Afaf, 2003, Nasr Mohammed , Abdullah Shamiyeh 2008).

Kotler, Ph 2000 mentioned that any economic activity aims to meet the actual or potential needs or desires of consumers. Strong consumer orientation requires knowledge of consumer characteristics, needs and purchasing behavior. Individual consumer behavior is defined as the sum of all motivations, attitudes and decisions that constitute his conduct in his capacity of end user of material and intangible products, (Antonides Gerrit , Raaij,Fred, 1998). Many surveys in several countries investigated the impact of GFC in consumer behavior, such as: in Australia more than twothirds of Australians believe that they are currently living in a recession, this indicative the intensifying recessionary mindset influencing consumer behavior, about (41%) of Australians feel their lifestyle has been impacted by the recession. Australian consumers have been forced to re-evaluate their spending, and consumption. (Research and markets web sit, sited in 12/11/ 2009). In another survey the Brazilian respondents believed their country in recession, Brazilian consumers have become more quality conscious and savvier shoppers, but remain prudent spenders. (Sirgy 2006)

Nearly half perceive that their lifestyle has been impacted by the recession (Research and markets web sit, sited in 15/10/2009). In the South-Eastern Asia (86%) of the Japanese consumers and (82%) of South Korean consumers believe that they are currently living in a recession, and (57%) of Japanese consumers and (25%) of South Korean consumers feel that their lifestyle has been impacted by the recession. (Research and markets web sit, sited in 9/10/2009). In the Arab world about (59%) of consumers in the United Arab Emirates (UAE) and 30% in Saudi Arabia believe that their country is in a state of recession, research shows that consumers are adjusting their consumption behaviors. (38%) of Saudi and (37%) UAE consumers have changed their lifestyle as a response to the global economic downturn, luxury brands have become an integral part of the Saudi Arabia and UAE lifestyle as consumers are willing to pay high prices ...