Yes, according to a March 2009 survey of 2,005 U.S. adults (DM News, 3/30/09, p. 7).
Of those surveyed, 84% said they are concerned abou the economic recession and have cut back their spending.
Only 14% of consumers said they are not concerned about the economy (and 1% said they didn’t know).
In my little online publishing business, we hear our customers voicing similar concerns.
These days they overwhelmingly favor our low-priced (under $100) information products, although we still sell respectable amounts of mid and even high-priced items.
Customers also demand that our products deliver the value they paid for. While our refund rates on mid and high-priced products are still low (less than 5%), they are triple what they were a year ago (1.5% then vs. 4.5% today).
Instead of keeping the audio or DVD album, the customer now considers that he has already listened to or watched the program once and may not ever again. By returning the item, he can save $100 or more. And in today’s economy, that’s more tempting than when folks were flush.
Tell me how the recession is affecting your business, and I’ll give you a free copy of my special report “15 Recession-Proof Business Strategies” (value: $29). Just click here to get started: