Stevens, PA—While many expect the slowing economy to grind to a halt following the Sept. 11 terrorist attacks on the World Trade Center and the Pentagon, at least one researcher finds that the tragic events could stimulate some spending.
Market research firm Unity Marketing indicates that consumers concerned about the nation’s security and future may be driven to increase their discretionary spending. Unity president Pam Danziger says the nation’s crisis could play itself out in consumers’ psychology and their shopping behavior.
In a release, Danziger said her firm’s research finds that a “substantial amount of U.S. household spending is driven by emotional, not physical needs,” or discretionary spending. “In the face of crisis, women, who do the bulk of American households’ shopping, will continue to buy for emotional satisfaction,” she said. Danziger breaks down discretionary spending into three categories: practical or functional items, such as steam vacuum cleaners, small kitchen appliances, or down comforters; small indulgences such as candles, bath products, games, toys, and fresh flowers; and luxury items, such as name-brand, upscale merchandise ranging from apparel and jewelry to automobiles.
Danziger even predicts that this holiday season could prove to be stronger than expected as consumers may crave the comfort and reassurance of family holiday traditions. In particular, companies that market indulgence-type products may see an uptick in sales.