Kelley
Blue
Book
Marketing
Research
Shows
Consumers
are
cutting
back
STUDY
SHOWS
NEW-CAR
SHOPPERS
CUT
SPENDING
IN WAKE
OF HIGH
GAS
PRICES
Kelley
Blue
Book
Marketing
Research
Shows
New-Car
Shoppers
Cutting
Back on
Other
Discretionary
Purchases
IRVINE,
Calif.,
April
24, 2008
–
According
to the
latest
Kelley
Blue
Book
Marketing
Research
study (www.kbb.com),
the
number
of
new-car
shoppers
adjusting
their
spending
habits
due to
increasing
gas
prices
has
reached
a record
high.
The
April
2008
results
revealed
that 65
percent
of
shoppers
are
spending
less on
non-essential
retail
items as
a result
of high
gas
prices,
compared
to 42
percent
just six
months
ago in
October
2007.
Additionally,
53
percent
indicated
they eat
out less
often,
48
percent
purchase
fewer
media
entertainment
items,
15
percent
carpool
or find
alternative
means of
transportation
and 10
percent
have
delayed
purchasing
a new
home.
Furthermore,
the
portion
of
shoppers
who say
they
will not
change
their
spending
habits
due to
gas
prices
has
decreased
from 43
percent
in
October
2007 to
22
percent
in April
2008.
Kelley
Blue
Book
Marketing
Research
Gas
Prices
and
Shopping
Habits -
Trending
Over
Time*
|
Purchase/Shopping Habits |
Oct |
Dec |
Jan |
Feb |
Mar |
Apr |
Change from Oct |
|
Eat out less often |
38% |
41% |
41% |
44% |
51% |
53% |
15 |
|
Carpool or find alternative means of transportation |
10% |
11% |
11% |
10% |
12% |
15% |
5 |
|
Delay purchase of new home |
5% |
11% |
8% |
9% |
10% |
10% |
5 |
|
Less shopping of non-essential retail items |
42% |
46% |
50% |
50% |
61% |
65% |
23 |
|
Purchase fewer media entertainment items |
33% |
36% |
34% |
40% |
45% |
48% |
15 |
|
Will not change any spending habits |
43% |
36% |
35% |
34% |
25% |
22% |
-21 |
*November
2007
data not
available
Many
contributing
economic
factors
have
been
detrimental
to
consumers
and
their
shopping
and
purchase
decisions
in the
last few
months.
During
the
third
week of
April,
the
price of
oil
jumped
to
nearly
$120 a
barrel
and
forecasts
have
speculated
gas will
cost an
average
of $4
per
gallon
in some
parts of
the
country
during
the
coming
summer
months.
With
this in
mind,
consumers
are
considering
more
fuel-efficient
vehicles.
The
April
2008
Kelley
Blue
Book
Marketing
Research
study
showed
that 47
percent
of
new-car
shoppers
would
seriously
consider
a more
fuel-efficient
vehicle
if gas
prices
increase
another
$0.25 or
less,
compared
to 26
percent
in
October
2007.
“The
effect
gas
prices
have on
consumer
spending
and
shopping
behaviors
indicate
how
important
fuel
costs
are to
the
economy,”
said
Jack R.
Nerad,
executive
editorial
director
and
executive
market
analyst
for
Kelley
Blue
Book and
kbb.com.
“Gas
prices
are
already
affecting
vehicle
sales in
every
segment,
and
traditional
sport
utility
vehicles
have
been
especially
hard
hit.
Other
industries
will
feel the
pinch as
consumers
cut out
life’s
little
luxuries
like
clothes,
eating
out and
entertainment
just so
they can
pay the
fuel
bills.”
The
latest
Kelley
Blue
Book
Marketing
Research
study
was
conducted
on
Kelley
Blue
Book’s
kbb.com
among
2,020
in-market
new-vehicle
shoppers
during
April
2008.
|
