Over the last decade many opinions have come out expressing why so many consumers have bad credit. Many times we hear that is it because the last generation has not taught the current generation how to save or spend money. Although that sounds like a great theory there are a few factors that are missing.
One factor is economic technology while another is the change in marketing.
What is meant when we use the term economic technology? If we go back down memory lane to the 40’s, 50’s or 60’s we can see that goods and services tendered money in a different fashion compared to today’s standards. If we had the standards from those years used today more businesses would go bankrupt simply
The other change is in marketing. How is marketing different today than in 1940? In 1940 advertising was cut and dry. ‘Here is our product it does this or that and here is what it costs.’ Even though that is a great straight forward method it is not what consumers seem to be looking for these days. With the vast amount of companies that sell the same or similar products, consumers want to know who they are buying from today. They want to know the ‘why’. Why do companies sell what they sell? What is the personal story behind the company? In turn companies have had to get very creative in their selling techniques. Successful marketing these days’ talks less about the product and more about emotions and relating to consumers (personally). More consumers are buying the ‘why’ and not the ‘what’ from companies. That alone is not something that former generations could have taught today’s consumer generation.
What do these two components add up to? It is simple. Trip the emotional switch and make it easy to pay for what we become emotionally attached to. The convenience alone makes it inviting even down to paying our normal bills with ease of service. Ease of service in paying and marketing strategies doesn't take away from the quality of a product. It demonstrates that companies are putting forth the effort to get more in touch with their customer base. Products have gotten better and as consumers it is our responsibility to make sure we can afford them. Here are some simple tips to help:
Establish a simple budget
Make sure if the product or service is not a necessity, it is affordable
Plan for future purchases
Enjoy what you have
Even though this sounds like a lesson in purchasing, most purchases these days are made on credit. As time progresses the economy will change and with it purchasing availability and marketing. Things will get easier and it will be interesting to see where our economy goes.
Contributor - info@iCommerce.us