Consumer Behavior
Consumer behavior is a critical area of study that examines how individuals, groups, or organizations make decisions about purchasing, using, and disposing of products and services. This field integrates concepts from consumer psychology, sociology, and marketing to explore the emotional, cognitive, and behavioral aspects that influence buying decisions. Key components of consumer behavior include understanding the motivations behind purchases, evaluating the psychological factors at play, and identifying social influences such as peer and familial relationships. Central to understanding consumer buying behavior are the various stages of the purchase decision process: recognizing a need, searching for information, assessing alternatives, making a purchase decision, and evaluating post-purchase satisfaction. In today's rapidly evolving marketplace, understanding consumer behavior has become increasingly essential for businesses striving to maintain a competitive edge. Recent trends highlight a significant shift towards sustainable practices, where consumers are not only seeking quality but are also willing to invest in eco-friendly products that align with their values. Additionally, the rise of digital shopping—notably through e-commerce and social commerce—has transformed traditional purchasing patterns, making it vital for marketers to implement personalized strategies that address individual consumer needs and preferences. With consumers demanding more tailored experiences and convenient payment options like "buy now, pay later," companies must adapt their marketing approaches to resonate with the latest consumer expectations effectively. By navigating these dynamics in consumer behavior, brands can foster deeper customer loyalty and enhance their market positioning.
What is the impact of rising egg prices on the economy and consumer behavior?
Rising egg prices (up 219% since 2019 to $4.95 per dozen) have created widespread economic ripple effects. Restaurants are adding surcharges to breakfast items, as demonstrated by Waffle House implementing a 50-cent fee. Consumers are changing their cooking habits, avoiding egg-heavy recipes, and shifting to alternative proteins like ground beef and tofu when possible. These price increases affect numerous sectors as eggs are an ingredient in many foods. As consumers seek substitutes, demand increases for other proteins, potentially raising their prices as well. With the USDA forecasting another 20% increase by year-end, this 'eggflation' continues to shape purchasing decisions and impact food businesses throughout the economy.
Watch clip answer (02:02m)
CBS News
30:56 - 32:58
What does the rise in grocery prices since 2019 tell us about U.S. economic recovery and inflation?
The dramatic increase in grocery prices reveals why many Americans aren't feeling economic relief despite apparent recovery. While essential items like eggs have soared 219% since 2019 and other staples like orange juice and sugar have seen significant price hikes, wages have only increased by 19% since January 2021. This substantial gap between wage growth and food inflation explains why consumers feel financially strained. People are falling behind economically because they're forced to spend considerably more on everyday necessities while their income hasn't kept pace, creating a disconnect between official economic recovery statistics and the financial reality experienced by average households.
Watch clip answer (00:39m)
CBS News
02:02 - 02:41
What is the impact of rising egg prices on the economy?
Rising egg prices impact the economy in several interconnected ways. Restaurants like Waffle House have implemented surcharges (50 cents) because eggs are essential for many menu items, directly affecting consumer costs. At the grocery level, consumers may avoid making dishes requiring eggs, decreasing sales for those ingredients and related products. This shift in consumer behavior also creates a ripple effect on other protein markets. As people seek alternatives to eggs, demand for other proteins increases, driving up those prices as well. This cascading effect demonstrates how inflation in one essential food item can spread throughout the food supply chain, affecting both businesses and household budgets.
Watch clip answer (00:48m)CBS News
00:59 - 01:47
How have egg prices changed since before the pandemic?
The price of a dozen eggs has dramatically increased since the pre-pandemic era. According to CBS News analysis of U.S. Bureau of Labor Statistics data, a dozen eggs cost just $1.55 in 2019 before the pandemic. Prices then surged dramatically to $4.82 in 2023, before temporarily dropping to $2.52 later that year. As of the current reporting period, egg prices have risen again to $4.95 per dozen, representing a more than 300% increase from pre-pandemic levels. This significant price increase reflects broader inflation trends affecting household grocery budgets across the country.
Watch clip answer (00:22m)
CBS News
31:01 - 31:23
What is the impact of rising egg prices on the economy?
Rising egg prices (averaging $4.95 per dozen) create widespread economic ripple effects. When egg costs increase, it affects restaurants (with businesses like Waffle House adding surcharges), food manufacturing, and consumer behavior. The impact extends to other food categories as demand shifts to alternative proteins, causing their prices to rise as well. Consumers may forego making dishes requiring eggs, reducing sales of complementary ingredients. With the USDA predicting another 20% egg price increase by year-end, these effects will continue to stress household budgets. This ongoing inflation explains why many Americans aren't feeling economic relief, despite recovery efforts since the pandemic.
Watch clip answer (01:51m)
CBS News
00:24 - 02:15
How have egg prices changed in recent years in the United States?
Egg prices in the U.S. have experienced dramatic fluctuations, rising from $1.55 in 2019 to a peak average of $4.82 in 2023 during the 'eggflation' crisis. This significant price increase represented more than a 200% jump in just four years, substantially impacting grocery costs for American households. However, relief eventually came as prices later dropped to $2.52, though still remaining higher than pre-inflation levels. This volatility in egg prices has influenced consumer behavior, pushing some Americans toward alternative protein sources like ground beef and tofu while reflecting broader inflation challenges in the economy.
Watch clip answer (00:05m)CBS News
00:18 - 00:23