Household Finances May Curb Holiday Spending Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Household Finances May Curb Holiday Spending

The focal point this article claims that if income, don’t rise, retail spending isn’t going to rise either.

It has been revealed that retail stores are allocating their time and efforts to attract buyers towards their respective marts for their holiday spending. Fastening energies of these marts is to capture the huge Christmas event. In this regard competition is also increasing among mart rivals while attracting consumers.

Top retailers like Walmart and Macy’s are hiring more and more temporary employees or seasonal worker so that they could cater a large number of customers at a time and fulfills their instant needs. The survey shows that Walmart is breaking its own record of hiring seasonal workers since 90’s to up till now. These marts are highly enthusiastic for their Christmas season sales for which they are paying huge attention in getting the required number of estimated human resources.

Apart from the human resource perspective the most essential part in the preparation of the battle plan of pulling customers towards the respective marts is the availability of suitable price scheme alternatives to the buyer. World’s top retailer Walmart capturing children's market by offering the lowest prices on toys and on other consumer goods. Whereas other retailers are providing different innovative deals to the customer that enables them to spend less and buy more.

All preparations are being made to invite consumer to the respective marts for spending. While ignoring the consumer’s economic situation can temporarily contribute to the satisfaction of these retailers that they have had huge efforts to generate revenues by having a large number of consumers in their stores.

Whereas a survey collected from 2200 American consumers reveals that:

AVERAGE INCOME

BELOW 50,000

ABOVE 50,000

AVERAGE SPENDING

$377

$978

The main reason why the authorities are concerned about their holiday sales, profits, is because of the reflection of tight economic condition of the buyers on their consumer behaviors. There are a number of factors that are brought to a halt an individual’s hand and ask him/her to think twice to purchase from somewhere else and go to a particular mart where they could buy more in their limited earnings.

Experts are having their opinion regarding the depressed consumer buying behaviors that it has been decreased as compared to last year’s spending. Reasons that were provided by the experts were highly related to the buyer’s income level, if the buyer is not receiving more, how he or she would be able to spend more, without overlooking the persistent rise in the prices of commodities which badly hurts consumer’s buying power.

The survey also reveals the distinction of consumer’s Needs Vs Wants phenomena in this regard that people are more aggressive in saving money on the purchase of basic necessity living items as compared to the purchase of the luxury goods. Makers of iPhone and other fast technological android mobile phones are expecting huge spending from their customers.

Consumer reviews:

Consumers are relentlessly decreasing their spending in comparison with their last year spending and they are stagnant on their opinion of making continuous efforts to eliminate their expenses day by day. Although the fact that consumers are opting to reduce their expenditure from their constant incomes, but they also wanted to increase their savings in their respective income level. The majority of the survey has been conducted by people of middle level of ages. Those are working people and or households who are a big buyer of consumer goods.

Two of the consumer have discussed their experiences regarding price differences in the commodity market. One of them was a lady of an age about 65 years who wanted to buy toys for her granddaughters, she tried very hard to get her desired commodity at her economic price. Another buyer Ms. Brzezinski sharing her experience that maintaining a suitable standard of living in New York is becoming difficult task now a days, for which we need deals on commodity goods that could stretch our buying power. While she was talking about Macy’s deals for households in which they could get 50% off on every item they purchase. She appreciated these type of moves from the retailer’s side........................

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