Issues that consumers are facing in these days of recession are mainly reduced income, increased expenses and solutions that don’t meet their needs. Consumer demand generally consists of 3 components. Income level, personal preference and product price. Businesses cannot do much about the consumers falling income level, to some extent they can do something about the price but this obviously affects the business profitability, so surely the best way to influence the consumer demand is by addressing their personal preferences?

This is where online business can have an edge over traditional business. For example, it makes sense that a high street retailer that must carry an inventory would cut it’s product range in order to reduce stock held and cater to mass preferences. Online businesses tend to have very little in the way of inventory so by listening to their consumers they can offer solutions that can only be found online and raise the demand for their services.

Also, just because consumers have less to spend doesn’t necessarily mean that they will always take the cheapest option. Over an extended recession value will become a much more important criteria than price. Consumers are becoming more and more adept and choosing products that not only meet their personal preferences but that also stand the test of time. That’s what they want. We should listen to them.