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Note that although a single person may have a lower income than a married couple, the single may be able to buy more discretionary items.
Learn about Consumer Behavior with the help of easy to understand, richly illustrated Powerpoint Presentation of 184 Slides .
[Factor] | What Factor Is Most Important in Motivating a Consumer?
Trading down is only part of the story, though. As Exhibit 2 shows, the percentage of consumers who traded down is almost equivalent to the percentage who did the opposite: traded up. Eleven percent of consumers decided to upgrade their purchases in certain categories. In aggregate, the world’s consumers appear to be “rebalancing the portfolio”—spending less in categories where they don’t favor any particular brand, and spending more in others. Cosmetics and wine had the highest trade-up rates (Exhibit 3), suggesting that higher-end brands in these categories were able to persuade consumers that their products are worth the price premium.