Survey: Gas Prices Force Consumer Change
Pain at the pump: A new survey of some 43,000 consumers shows that rising gasoline prices are beginning to modify the way people work and travel.
The study, which was conducted by the New York-based NPD Group, reveals that consumers are making two kinds of changes. The first — and most common — variety are temporary in nature, and could be easily reversed if gasoline prices were to decline. This tier of belt tightening included such actions as modifying vacation plans, carpooling, and resorting to public transportation.
But a second group indicates drivers believe higher energy prices are likely to remain for the long haul. They include big ticket purchases, such as more fuel efficient vehicles, and a measurable uptick in telecommuting or working from home.
Buying a more efficient auto or selling a larger one, moving closer to work, and perhaps telecommuting are the kind of systematic changes which likely reflect a permanent values shift on behalf of the survey group. Depending on how you tally the results, between 17 and 23 percent of the study panel have made lasting changes in view of higher fuel prices.
This is a considerable percentage, particularly when the relatively short duration of the current fuel pinch is taken into consideration. Last December, average U.S. gasoline prices were just under three dollars per gallon. For a one dollar premium over a six month period, 17 percent represents something of a sea change.
We at GM don’t think this is a spike or a temporary shift. We believe that it is, by and large, permanent.
– General Motors Chairman and CEO Rick Wagoner on new consumer attitudes
The NPD Group, founded in 1967, is a global provider of consumer and retail market research information for a wide range of industries.
More Reading:
NPD Finds Consumers Making Long-Term Changes (NPD Group)
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Luckily I live in an area where the life without a car is possible. Commute traffic works. All my basic needs are ten minutes walk away. And the bus terminal in downtown has few good beerhouses.
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