Consumer behavior varies under any kinds of conditions,
including in uncertain situations. There is no one type of behavior that would cover all
behavior patterns at any time.
If consumers are uncertain
about the possible return they may receive from an investment due to conditions
surrounding the investment, they may be reluctant to make any investment at all. Some
might take a risk and invest some money, but possibly not as large an amount as they
would have invested if they had felt more confident about the situation. Shoppers may
reduce their purchases of new products during periods of financial uncertainty and may
spend much more time evaluating and comparison-shopping before
buying.
If stockholders are unsure of what the stock market
trends might mean for the future, they may be inclined to reevaluate their holdings but
will not all take the same steps as a result of the reassessment. Some may choose to
sell some or all of their stocks, hoping to reap a profit before the price of their
shares declines. Some might buy more stock, feeling that the cost per share is about to
increase greatly.
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