According to the latest Kelley Blue Book Marketing Research study,
the number of new-car shoppers adjusting their spending habits due to
increasing gas prices has reached a record high. The April 2008
results revealed that 65 percent of shoppers are spending less on
non-essential retail items as a result of high gas prices, compared to
42 percent just six months ago in October 2007. Additionally, 53
percent indicated they eat out less often, 48 percent purchase fewer
media entertainment items, 15 percent carpool or find alternative means
of transportation and 10 percent have delayed purchasing a new
home. Furthermore, the portion of shoppers who say they will not change
their spending habits due to gas prices has decreased from 43 percent
in October 2007 to 22 percent in April 2008.
Kelley Blue Book Marketing Research
Gas Prices and Shopping Habits - Trending Over Time*
|
Purchase/Shopping Habits |
Oct |
Dec |
Jan |
Feb |
Mar |
Apr |
Change from Oct |
|
Eat out less often |
38% |
41% |
41% |
44% |
51% |
53% |
15 |
|
Carpool or find alternative means of transportation |
10% |
11% |
11% |
10% |
12% |
15% |
5 |
|
Delay purchase of new home |
5% |
11% |
8% |
9% |
10% |
10% |
5 |
|
Less shopping of non-essential retail items |
42% |
46% |
50% |
50% |
61% |
65% |
23 |
|
Purchase fewer media entertainment items |
33% |
36% |
34% |
40% |
45% |
48% |
15 |
|
Will not change any spending habits |
43% |
36% |
35% |
34% |
25% |
22% |
-21 |
*November 2007 data not available
Many
contributing economic factors have been detrimental to consumers and
their shopping and purchase decisions in the last few months. During
the third week of April, the price of oil jumped to nearly $120 a
barrel and forecasts have speculated gas will cost an average of $4 per
gallon in some parts of the country during the coming summer months.
With this in mind, consumers are considering more fuel-efficient
vehicles. The April 2008 Kelley Blue Book Marketing Research study
showed that 47 percent of new-car shoppers would seriously consider a
more fuel-efficient vehicle if gas prices increase another $0.25 or
less, compared to 26 percent in October 2007.
“The
effect gas prices have on consumer spending and shopping behaviors
indicate how important fuel costs are to the economy,” said Jack R.
Nerad, executive editorial director and executive market analyst for
Kelley Blue Book and kbb.com. “Gas prices are already affecting vehicle
sales in every segment, and traditional sport utility vehicles have
been especially hard hit. Other industries will feel the pinch as
consumers cut out life’s little luxuries like clothes, eating out and
entertainment just so they can pay the fuel bills.”
The
latest Kelley Blue Book Marketing Research study was conducted on
Kelley Blue Book’s kbb.com among 2,020 in-market new-vehicle shoppers
during April 2008.
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