Historically, consumers that give up expensive products during a recession go back to buying them once better days return. But according to a new report from McKinsey Quarterly, that is probably not going to be the case this time:
New McKinsey research found that, in any given category, an average of 18 percent of consumer-packaged-goods consumers bought lower-priced brands in the past two years. Of the consumers who switched to cheaper products, 46 percent said they performed better than expected, and the large majority of these consumers said the performance of such products was much better than expected. As a result, 34 percent of the switchers said they no longer preferred higher-priced products, and an additional 41 percent said that while they preferred the premium brand, it "was not worth the money."
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