Financial analysts say the economy is on an upswing, but consumers are still cautious about spending. According to a new study from Parago, American shoppers are routinely choosing price over brand and that could hurt small retailers on the web.
After long months of rampant unemployment, high gas prices, and a poor housing market, consumers are feeling hard pressed to keep up. 70% said they were more sensitive to price and 83% said they felt their purchase power was the same or less than it was a year ago.
Because of this, 66% of those surveyed said price was the primary factor in deciding what to purchase. This is up from 60% last year.