Todor suggests that the economic crisis is making consumers stressed out and confused. Given that set of circumstances, he adds, two “mutually exclusive psycho-economic mindsets” can take hold:

  • hoarding, in which consumers take a “ride out the storm” mentality reflected in reduced spending and a heightened focus on price; and
  • engaging, in which individuals seek out relationships with companies that will engage them in a process of regaining a sense of control.

The customer experience influences both of those mindsets, according to Todor. “You can react by focusing…on constraining costs and dealing with the recession as an internal problem, or recognize that now consumers have new needs,” he says.

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