Advertising in times of economic crisis

Consumers follow a single mindset of cutting down expenses in times of crisis. This is not entirely true. Being a brand works well in a period of crisis, especially when the cards are played correctly. When a brand’s value and messaging is especially relevant, buyers are willing to buy new products, trade up and buy more. For example, owners of luxury cars are bound to purchase more fuel-efficient cars from trusted automobile makers; indulgent buyers are likely to trade up, impulse-buy or buy more expensive items provided these have socially relevant messages; and the middle income may just advance their purchases or do “group-purchase” for household items, etc.

In periods of economic crisis, people may be less predisposed to purchase. But they continue to buy and will buy when there are more substantive reasons to do so. Consumers are not averse to buying but do not like thoughtless consumption in periods of economic adversity. They are more prudent due to more limited resources; are more cynical of advertising and promotional messages in various media; are less whimsical and less moved by outrageous media frequencies and spending.

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Updated: 2008-09-01 — 00:11:38