Consumers find happiness in being frugal

Spending habits are changing. After facing an overwhelming recession, consumers are reluctant to throw hard-earned cash toward trinkets, excess clothing and big-ticket items. As the economy turned, many consumers sold their possessions. In the interim, many realized they just might be happier without so many of them, even as the economy appears to be turning around.

Merchants and retailers need to respond to consumers in new ways to reap benefits from frugal spenders. Brands need to be broadened so that shoppers can get more for their money. Business strategies need to be tailored to meet consumer desires for the overall experience of purchases, as opposed to merely acquiring more things. Businesses need to create brands that emphasize creating memories, not building up false appearances.

Shopper savvy

Gone are the days when consumers carelessly responded to eyeball candy and needless purchases. Every dollar counts, and security isn’t as reliable as was once thought. Housing markets crash, businesses go under, and large corporations receive bailouts that often increase taxes on citizens. Government programs and recreation facilities are not immune from cutbacks. Shoppers have learned to budget their hard-earned wages, often minimizing expenditures and becoming extremely aware of wants versus needs in the current economy.

Consequently, consumer shopper savvy has changed the way people make purchases. It has also had a major impact on what they choose to buy. Consumers are paying down debt, and one of the ways they are doing this is by learning to read their credit card statements. If that means they skip making a purchase to avoid higher fees, many will gladly do so. In fact, a lot of consumers prefer to pay cash only for purchases, avoiding the plastic billing cycle altogether.

Product-defined value

Shoppers compare prices, calculate weights and measures, read labels and clip and use coupons. Bigger is not necessarily better anymore. Consumers are becoming more aware of market value, and they’re intent on getting the best product for their money. Flashy advertising may get their attention, but only long enough to determine if the product is worth purchasing in the first place. Shoppers do their homework these days, and they have several methods at their disposal to get the best value available.

• Compare prices: The Internet has a wealth of information, making it possible for consumers to compare prices and even search for the absolute lowest price offered on almost everything being sold. With the click of a button, consumers compare prices calculating and comparing every minute detail of the product or service they intend to purchase.
• Calculate weights and measures: Merchants need not try to fool consumers with big, fancy packaging. Most shoppers have become adept at figuring out how much a product should weigh and how big packaging needs to be for it. Consumers are no longer lured to purchase something based on the appearance of the package. Their main interest is what’s inside the box.
• Read labels: Consumers these days are very careful about knowing what they’re getting. They've learned how to read and study labels, and they make a point to purchase exactly what they want. As much as they calculate and compare prices, they also incorporate reading labels into the equation.
• Clip and use coupons: Spending wisely has become a popular trend among consumers. Not only do they clip and use coupons, they also enter into coupon co-ops, exchanging coupons with friends, neighbors and even strangers online. Websites and blogs have emerged to meet the supply and demand of coupons. Many shoppers refuse to pay full price for merchandise anymore. Product-defined value is only as good as the coupon saving them money on it, and most items rarely need to be purchased at full retail price anymore.

There is a certain satisfaction in getting a good deal when making purchases. The myth that spending lots of money makes one happy has been revealed by the very consumers who once believed the myth. They have become frugal and much happier in the process.