Role of Financial Intermediaries

Economy methods such as credit cards unsecured loans. According to the research, consumers clear become less comfortable about the amount of debt they are shouldering. Indeed, homelessness charity Sheher estimates that tbere leave alone be 130,000 personal insolvencies this year. While the research echoes many leading economists in predicting that the UK volition not experience a recession in the technical sense (two in series(p) quarters of negative GDP growth), the slowdown will continue puff up into 2009, and the economy is unlikelyto pickup until2010. In response to this, a bigh proportion of consumers are tick off to hand down, by choosing cheaper brands and retailers. However, the willingness to resort to shopping at discount retailers varies by take aim of anxiety. Eigbty percent of consumers categorised as panicked are to a greater extent likely to trade down, compared with just 34% ofplacidconsumers. Inline with this, only 33% of placid consumers tell apart they will eat out less frequently, while even fewerthink they will stop shopping for fun and pleasure. Most consumers are increasingly price sensitive, with 73% paying more attention to the price of tbe grocery products they are buying.

The research also found that 70% of consumers are searching the network for cheaper prices, choosing products on the basis of special offers, and using coupons and vouchers. Pricecomparison websites are organism visited hy 60% of consumers, while 58% are taking advantage of homage cards. There is no doubt that consumers will be considerably more focused on price over the coming 12 months. During the 1991 recession, coupon firm Valassis £l4tn amount of personal debt accrued by UK consumers 73% of consumers more likely to pay attention to the prices of grocery products 70°/c0 of consumers wiil search the meshwork for iower product prices 63%0 of consumers more iikeiy to switch from usuai brand to cheaper aiternative if price increases describe a 60% rise... If you want to get a bountiful essay, order it on our website: Orderessay

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