It is fascinating how much the environment shapes consumer, and inevitably, businesses behavior.

I wonder what the results would be from any research conducted on possible shifts of consumer behavior? Namely, has the recent economic recession prompted consumers to be behave in a more ‘value conscious’ manner. Possibly causing a shift in demand from discretionary products (often differentiated) that once distanced the consumer from their peers, to that of products or services that are a necessity? Or perhaps an increase in demand of less-transparent discounted products, such as hardcore discount shopping (Aldi, dollar stores, etc). These products would still offer a degree of utility for the consumer, while still maintaining the image of ‘keeping up with the Jones’.

Nevertheless, a standard argument would be the more differentiated your clients products/services are, the more they are able to distance themselves from dreadful equilibrium pricing. Effectively moving them from ‘price-takers’ to becoming ‘price-makers’. Which, if done correctly, could generate further profit margins. As I am sure your business knows!