“Amid the threat of tough economic times, Internet and cellphones have become almost like heat and water for consumers – they are among the last monthly expenses that households are willing to cut from their budgets during a recession,” Grant Robertson reports for The Globe and Mail.
“A survey conducted last week in Canada and the U.S. suggests that if consumers are forced to reduce spending, they will look almost everywhere else in their household budgets before they unplug their computer or switch off their [cell phone],” Robertson reports.
“‘Many consumers, with minor exceptions, view these as essential utilities, like water or electricity,’ says the report, which was compiled from interviews with 800 consumers last week, and is expected to be released today,” Robertson reports.
“‘People were saying, ‘It’s not going to happen – you would have to pry it out of my hands,’ that kind of language,’ said Kaan Yigit, head of Solutions Research Group, the Toronto firm that produced the report,” Robertson reports.
“This time, the casualties of belt-tightening will come elsewhere,” Robertson reports
Ranking consumer targets for cuts:
1. Big-ticket events (eg. concerts, sports)
3. DVD buying
4. Magazine subscription renewals/newsstand
5. Cable/satellite TV extras
6. Video game buying
7. Home phone
8. Mobile/wireless phone
9. DVD Rentals
10. Home Internet
Solutions Research Group
Full article here.
[Thanks to MacDailyNews Reader “Shawn P” for the heads up.]