CLEVELAND, Ohio -- As the nation teeters between already-higher gas prices and fears of a return to 2008 levels, the American workforce is wasting no time in compensating for the loss of discretionary funds through purchase behavior adjustments. According to a report from WorkPlace Media, compared to one month ago, more working consumers are driving less (41.6 percent) as a result of fluctuating gas prices, suggesting that necessity-driven shopping will be shifted to the commute route.
In a month-over-month review of BIGresearch's June Consumer Intentions & Actions Survey (CIA) by WorkPlace Media, a marketing solutions firm that monitors the purchase behavior of working consumers, data shows an increase in cost-cutting measures being taken by the country's employees to compensate for higher gas prices:
Actions and purchase behavior of working consumers as a result of fluctuating gas prices
May June
2009 2009
Buying more store brand/generic products 35.7% 36.8%
Doing more comparative shopping online 25.0% 29.8%
Shopping for sales more often 44.3% 46.9%
Shopping more online 16.2% 16.9%
Taking fewer shopping trips 41.2% 45.2%
Taking public transportation more 4.9% 5.1%
Using coupons more 39.3% 44.0%
Deferring auto maintenance/tires 12.1% 13.6%
Source: BIGresearch Consumer Intentions & Actions Survey, June 09
Impact on purchase behavior and actions of working consumers as a result of fluctuating gas prices
Delayed major purchase such as car, TV, furniture 25.9% 28.6%
Reduced dining out 41.3% 45.0%
Decreased vacation/travel 38.0% 41.3%
Increased carpooling 7.2% 7.1%
I will be driving less 35.4% 41.6%
Spending less on groceries 20.7% 21.6%
Spending less on clothing 34.1% 36.7%
No major impact 33.2% 28.2%
Source: BIGresearch Consumer Intentions & Actions Survey, June 09
"Research has shown that the commute is an existing trip that working consumers utilize for shopping and running errands, with as many as 71 percent stating that they shop on their way to/from work or during a lunch break," says Stephanie Molnar, CEO of WorkPlace Media. "As a result, it only stands to reason that this trend will increase as gas prices continue to rise -- hopefully not to 2008 levels. Therefore, in addition to decreased spending, marketers may see transactions shifting to the hours just before and after work during the commute of working consumers."