RMG 700 - Applied Retail Research
Data Analysis Assignment
Today more than ever, there is a major and constant fear of an impending recession in Canada’s economy. A recession is a decline in any given country’s Gross Domestic Product (GDP) for two or more consecutive quarters of a year. A recession normally takes place when consumers loose confidence in the growth of the economy and spend less. This leads to a decrease in demand for goods and services, which in turn leads to a decrease in productions, lay-offs and a sharp rise in unemployment rate. Inventors spend less as they fear stock values are likely to fall and thus stock markets fall on negative sentiment. ...view middle of the document...
There are eight important trends categories for business. These eight trends are categorized on the basis of their maturity and whether they are likely to be accelerated or slowed by recession. The four key trends that are being accelerated by this recession are consumer demand for simplicity, a call for ethic business governance, a desire to economize, and a tendency to fit from one offering to another. The other four important trends are being slowed by recessions are green consumption, a decline in respect for authority, ethical consumption, and extreme-experience seeking.
Demand for simplicity is increasing because downturns are stressful and therefore increase people’s desire for simplicity. A call for ethic business governance is also accelerating through the recessions because people seek to punish the perceived sources of their dire circumstances. In addition, a desire to economize is also increasing as people who do not need to economize are pursuing a more wholesome and less wasteful life. Finally, a tendency to find from one offering to another is also accelerating because consumers could instantly find a profusion of brands or products to meet their needs but would just as quickly abandon any choices that somehow fell short.
Green offerings may struggle in recessions as consumers bypass expensive ecoproducts or trade down to cheaper alternatives. Public respect for authority is also declining because consumer’s going confidence in their own ability to find information in order to make smart choices. Ethical consummations and spending such as eating cage-free eggs and giving to charity, are falling as people focus on their own dire situations. Finally, extreme-experience is falling out of favor because they are expensive. (Flatters & Willmott, 2009)
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | Grand Total |
Count of canada.economy | 0.74% | 3.15% | 19.81% | 30.37% | 27.22% | 15.00% | 3.70% | 100.00% |
III. Data Analysis (reproduce from assignment #5)
There were 5 percent of respondents that postponed the purchased of washing machine and 12.59 percent of respondent postponed the purchased of cars because of economic uncertainty. Most of the respondents were not interested in purchasing washing machine or car. 11.65 percent of respondents did not postpone their purchased of washing machine. There were also 20.74 percent of respondents that did not postpone their purchased. This was probably because there were only few households that were affected by economic uncertainty. Most of households rated the Canada’s economy at stage four (based on the table above), they didn't think that Canada’s economy was in a stable position or in recession position either. This was probably the main reason why the percentage of households that postponed the purchased because of economic uncertainty were lower than percentage of households that did not postpone their purchased of car and washing machine. According to the data above, there were 18.2...