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Essay / The Global Financial Crisis - 1108
The global financial crisis has led to far-reaching changes in consumer behavior and consumption patterns across the world, with the economic downturn impacting spending and power purchasing of individuals. The findings of a 2008 study of consumer behavior by Booz and Company revealed that, first, the unprecedented confluence of the dramatic rise in oil prices, the substantial deterioration in housing values and the economic crisis credit has affected the economy as a whole and significantly changed consumer behavior. Second, many consumers had already cut their spending significantly and were planning to make deeper tradeoffs given the downbeat and depressing economic forecast. Third, although lower-income people made deeper trade-offs, people of all ages and income levels made similar adjustments and compromises in key spending areas. Fourth, these analogies are understandable given that the majority of local populations are exposed to similar drivers of change and expenditure distribution, such as rising mortgage rates, falling savings funds, rising property prices and basic services and many other spending considerations. To understand the motivators that drive consumer behavior and consumption patterns, people should not think of consumers in abstract terms. Drawing on Maslow's theory of motivation, a consumer is a human being who uses available goods and services to satisfy his or her needs and wants. People's needs and wants will depend on the level of motivation they have achieved. Furthermore, people do not spend their money aimlessly, they spend it on goods and services that interest them and according to their financial means. For example...... in the middle of a paper ......e which only ticks a financial time bomb. For example, the 2008 recession was mitigated because Americans continued to spend, but that wasn't enough to stave off the global financial crisis. Almost all economists agree that there is no long-term savings paradox and instead advise consumers to change their spending behavior by paying off their credit cards. Families in almost all countries, due to the crisis, have not only changed their consumption patterns and spending behaviors, but also changed their lifestyle. Many people are opting for a semi-sustainable lifestyle: in some areas, they have created community gardens where they grow fruits and vegetables. These changes are presented as a gloomy picture for the economy. However, one might wonder whether they are really gloomy or rather optimistic in terms of sustainable living...