An overview of the spending impact of cheaper gas
J. Walker Smith
For many companies, the big question of the moment is what cheaper gas means for consumer spending. Five elements frame the answer:
- How much additional money will consumers have?
- What sort of spending power does this amount provide?
- How willing are consumers to spend?
- What will consumers buy more of?
- What does this mean for my category or brand?
Bottom line: for most categories, the near-term impact will be positive, yet modest. Even so, the upside potential is enough to warrant marketing support to ensure it is realized....