Restaurants, Green Products Big Losers as Pessimistic Consumers Cut Back
Some 58% of Americans feel that the economy has reached a low point and nearly half (47%) think it will stay this way for a while, prompting spending cutbacks on nearly everything - from charitable contributions to dining out to beauty and grooming products, according to the November/December 2008 Insight Report from MarketTools, Inc.
The report, which focuses on US economic conditions and how they will affect spending in the coming months, foretells an economically turbulent holiday season and spending reductions for the longer term.
Green Products Stay on Store Shelves
The research also found that while environmentally friendly or “green” products have become increasingly available in stores in recent years, the economic downturn is affecting purchases of these more expensive options:
- Only 8% of Americans are such strongly committed buyers of green products that they will pay more for them despite the economy, while about half (47% ) of consumers are less likely to pay a premium for green products during tough economic times.
- Nearly four in ten consumers (38%) are not willing to pay a premium for green products regardless of the state of the economy.
- 68% of Americans buy green products at least occasionally and 18% of respondents opt for green choices either “most of the time” or “all of the time.”
- Generation Y is especially likely (22%) to buy green products most or all of the time.
