A recent Gallup survey showed that 49% of people making $90,000 or more a year rated economic conditions as "poor," a 23-point increase since early September.
U.S. demand is falling outright. It fell sharply in the third quarter, and consumer confidence hit an all-time low to begin the fourth quarter. Asset-price deflation is especially corrosive. Those declines are part of a broad deleveraging by financial firms and households. This forced casting off of debt is fueling the sale of homes, stocks and other securities at fire-sale prices while shutting off new lending in a self-reinforcing spiral that destroys wealth and depresses demand.
Industries from automobiles to home improvement to personal coaching are employing sober, left-brain pitches in special deals, useful features and long-term savings. Lexus, in September, began running ads with the tagline "Lower Cost of Ownership." That's a reference to Lexus' decent fuel economy, durability and resale value. "It's definitely a time to be more rational," says Dave Nordstrom, Lexus North American marketing chief.
Delta Faucets tells us that "less than 1% of the earth's water supply can be used for drinking. All the more reason to design (and buy) a faucet with a conscience." Delta's "Dryden" faucets are built specifically to have a more efficient flow rate that saves up to 32% more water per minute. That means every time you turn it on, you'll save a little extra for Mother Nature.
Executive coaches are telling prospective clients that they can hold on to their job by stepping up to leadership or how find a new job in a tough economy through a personal coaching engagement.
"No one wants to look like an idiot who just bought something because it's expensive," says Paul Wilmot, who handles public relations for tony brands.
Source: BusinessWeek, November 10, 2008