31 July 2006

Gasoline Prices Affecting our Buying Habits

BIGresearch's June Consumer Intentions and Actions Survey (CIA) found that consumers are having to make serious choices to offset the rising cost of gas. Over 75 percent of nearly 7,500 respondents agreed that fluctuating gas prices have impacted their spending. While that may come as no surprise, the survey results raise a major red flag for business and retail.

According to the BIGresearch July Consumer Intentions and Actions Survey over 60 percent of truck owners are making fewer shopping trips, shopping closer to home, using more coupons, and conducting more comparative shopping using the Internet as well as newspaper ads and circulars. Gary Drenik, president and CEO of BIGresearch stated:
In fact, those who own trucks have deferred major purchases (35 percent), reduced dining out (55 percent) and decreased vacation and travel (58 percent) just to be able to fill their gas tanks.
Not surprisingly, owners of cars and hybrids are not changing their buying or driving habits. When asked what price per gallon gasoline would have to reach before they would change their driving habits, 44 percent of owners of cars and hybrids said their driving habits would not change, regardless of price and 57 percent said that fluctuating gas prices have had no major impact on their spending.
If gas prices continue to soar, small cars could be the biggest thing going for the automotive industry. However, if people continue to have to make sacrifices in order to drive, retailers, entertainment and other industries will have to work harder and market smarter to capture ever-shrinking consumer dollars.
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