I spend a lot of time analysing consumer behaviour. Behaviours are affected by so many factors that my job can be mind boggling at times. The issue that has been receiving most attention of late in Consumer Analyst circles is the effect of the current Australian economy on purchasing decisions, especially in the retail environment. This is nothing new. Whenever the economy shifts consumers get nervous, and when consumers are nervous they spend less. Hardly rocket science. So why is it that retailers adopt practices during these economic down times which firstly, are rarely successful, and secondly, tend to damage the esteem and reputation of their business? This is going to be the issue I will look at over the next few weeks in order to share with all you retailers out there why half price sales are never appropriate in this climate and why you should be pumping up you advertising spend, not decreasing it.
Check back next week for my first installment of Retailer Blues : The Cup of Coffee Theory.