Thursday AM November 20th, 2008

image of consumer shoppingConsumer prices dropped one percent in October, the steepest one-month drop in the coast of living since 1947. That means we're paying less for a lot of the things we buy. Jacqueline Cason is a marketing professor at the University of Houston's Bauer College of Business.

"Retailers are hoping we are going to respond to lower prices and if we perceive these as better deals, then yes, we will buy."

But Cason says she's senses a subtle shift in the way consumers look at spending.

"I don't see the shift in the behavior yet. But I think there's more consciousness now about what people are doing and a more thoughtfulness in the choosing of things, whereas before I think we were more on automatic pilot."

With the exception of energy and food, core prices fell last month for the first time in more than 25-years.

 

Share Options

Email