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Buying Less, But Shopping More: Changes In Consumption Patterns During A Crisis

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  • David McKenzie
  • Ernesto Schargrodsky

Abstract

Market research data are utilized to examine the use of changes in shopping behavior as a method of mitigating the effects of the 2002 Argentine economic crisis. Although the total quantity and real value of goods purchased fell during the crisis, consumers are found to be spending more days shopping. This increase in shopping frequency occurs through consumers purchasing lower-quality goods from a wider variety of shopping channels. This paper provides the first estimates of the magnitude of such effects during a recession, and suggests that this increase in shopping frequency can be an important coping mechanism for households. Shopping more often is shown to enable households to seek out lower prices and locate substitutes, allowing a given level of expenditure to buy more goods.

Suggested Citation

  • David McKenzie & Ernesto Schargrodsky, 2005. "Buying Less, But Shopping More: Changes In Consumption Patterns During A Crisis," Business School Working Papers buyinglessshop, Universidad Torcuato Di Tella.
  • Handle: RePEc:udt:wpbsdt:buyinglessshop
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    File URL: http://www.utdt.edu/departamentos/empresarial/cif/pdfs-wp/wpcif-012005.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kaytaz, Mehmet & Gul, Misra C., 2014. "Consumer response to economic crisis and lessons for marketers: The Turkish experience," Journal of Business Research, Elsevier, vol. 67(1), pages 2701-2706.
    2. FIEL, Konrad Adenauer Stiftung & FIEL (ed.), 2006. "Planeando el futuro. Las familias Argentinas y sus decisiones de consumo, ahorro e inversión en capital humano," Books at FIEL, FIEL, edition 1, volume 1, number 0306.
    3. George Alessandria & Joseph P. Kaboski, 2011. "Pricing-to-Market and the Failure of Absolute PPP," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(1), pages 91-127, January.
    4. George Alessandria, 2005. "Consumer search, price dispersion, and international relative price volatility," Working Papers 05-9, Federal Reserve Bank of Philadelphia.
    5. Hampson, Daniel P. & McGoldrick, Peter J., 2013. "A typology of adaptive shopping patterns in recession," Journal of Business Research, Elsevier, vol. 66(7), pages 831-838.
    6. Mark Aguiar & Erik Hurst, 2005. "Lifestyle prices and production," Public Policy Discussion Paper 05-3, Federal Reserve Bank of Boston.
    7. George Alessandria & Joseph P. Kaboski, 2004. "Violating purchasing power parity," Working Papers 04-19, Federal Reserve Bank of Philadelphia.

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