The present economic situation is affecting people’s spending habits. As living costs rise and incomes fall, consumers need to control their finances, cut spending habits and start saving. There is a general change in consumer attitudes and behaviours.
Consumers have a more selective attitude to shopping, they want good value. Price is important but products must offer more than low prices. They must be perceived as good value, that is, a combination of best price and best quality.
Consumers are planning their shopping. They do not want to waste money, food, time or fuel so they are shopping less and buying only what they need. They go shopping less frequently out-of-town to save fuel, cutting down on big shopping centres and increasing visits to local shops or supermarkets.
Leisure and entertainment occur at home and in local venues. This saves costs of travel and leisure activities. People dine at home with family and friends instead of visiting restaurants and they go to local coffee shops to meet rather than pubs and wine bars. They prefer downloading the latest film rather than going to the cinema.
Online shopping saves travel and time costs. Consumers can have easy access to instant information on prices, vouchers and promotions.
There are also changes in different age groups. Young shoppers are not immune to the economic crisis. Unemployment, university fees, inflation and poorer support from parents are seriously impacting their spending capabilities. Meanwhile, the older generations are expanding in number and becoming a large market but with restricted spending power.
- venue: place
- fee: amount of money you pay
- voucher: ticket that can be used instead of money
Read the instructions for each question carefully before answering (Total score:10 points)
1. Answer the following questions. Write complete sentences. (1 point each = 2 points)
- a) What two activities can people do to save on leisure and entertainment?
- b) What are the causes of the fall of young people’s spending power?
2. Underline the best option (0.5 points each = 1 point)
- 1. want lower prices regardless of quality.
- 2. avoid local shops.
- 3. Spend less on fuel in shopping and leisure activities
b) The economic crisis is causing an increase in…
- 1. the cost of living
- 2. incomes
- 3. the spending power
3. Are the following sentences true or false? Underline the correct option (0.5 points each = 1 point)
- a) For consumers, the lowest price product is the best shopping option. TRUE / FALSE
- b) The older generations are growing in number but their income is not increasing TRUE / FALSE
4. Find a synonym in the text for these words (0.5 points each = 1 point)
- a) eat:
- b) at the same time:
5. Choose one of the following topics and write a text 60-80 words long (5 points)
- a) Write about your shopping habits.
- b) Write about the advantages and disadvantages of shopping online?
a) To save on Leisure and entertaiment, friends can meet at home instead of going to a restaurant and they can download a movie and watch it home instead of going to the cinema.
b) The text mentions the following causes: unemployment, university fees, the economic crisis and less economic support from parents