Question

The Great Recession of 2008-2009 had a profound effect on the economy and consumers. Of the following, which represents one of the major consumer trends resulting from the Great Recession?

A. It created a trend away from consumer spending on well-known brands

B. It turned free-spending consumers into value-seeking ones.

C. It turned brick-and-mortar retailers into Internet-only retailers

D. It restricted retail expansion domestically and internationally

Answer 1

The correct answer is A. It created a trend away from consumer spending on well-known brands

Step-by-step explanation:

The Great Recession of 2008-2009 was a major economic crisis which started in the United States and spread around the world from there. A major housing bubble that had been building up since the early 2000s burst up when thousands of house owners were unable to repay their mortgages, triggering a domino effect that lead to a major economic downfall. As a result of the Great Recession, hundreds of thousands of people lost their jobs, or had no choice but to accept lower wages in order to make ends meet. As a result of this, it created a trend where consumers would move away from spending on well-known brands and preferred to buy other less expensive brands. This is because brand recognition is a plus, thus well-known brands are usually sold at higher prices. Consumers affected by the Great Recession, trying to save as much as possible, switched their preferences towards low-cost brands. Many well-known brands, in order to stay competitive, developed cheaper brands of their own products in order to regain consumer preferences.