Because of the sweeping layoffs and closures caused by the coronavirus pandemic -- the effects of which were felt as early as March -- the economy is bruised and battered. The question on everyone's mind is, of course, how these turbulent economic conditions may affect them. Here are three things that are likely to remain higher than usual for the foreseeable future: 1. Unemployment. Looking to get a better job? With over 40 million Americans filing for unemployment during the pandemic and the real jobless rate purported to be at a staggering 24%, you might be better waiting out the economic storm. While the number of weekly jobless claims has dropped eight straight weeks since topping out at 6.9 million in April, it still marks 10 consecutive weeks with claims exceeding 2 million. To put this in perspective, before the coronovirus prompted the shutdown of  businesses across the U.S., weekly U.S. unemployment claims had averaged 218,000. Needless to say, those applying ...

Aside from masks, disinfectants, toilet paper, and other health-oriented items, can you guess which product is flying off the shelves at grocery stores big and small, near and far? I'll give you a hint: It's something you'd expect people to consume when they're feeling down, as many in this lockdown are. If you said beer, you hit the nail on the head! Indeed, Americans' thirst for booze has actually increased since the coronavirus began spreading across the U.S. in mid-March. Beer, a beverage that was once falling out of favor with consumers as their tastes shifted to such low-calorie drinks as spirits and spiked seltzer, is surely benefiting. In particular, home-grown budget beer brands have spiked in sales over the past two months. For instance, sales for Anheuser-Busch's Busch Light have gone up 44%, thanks largely to amusing promotions like implementing price cuts depending on how much snow has fallen. Other brands have recorded similar do...

Certain people seem terribly misinformed when it comes to what makes a savvy consumer. They simply can't say no to a sale or discount, even if the product they're buying isn't something they really need or ever plan to use. Whether they're trying to take advantage of buy-one-get-one-free deals on cold cuts at the grocery store or deep discounts on apparel at the mall, they don't realize that, in the quest to save money, they're still spending lots of it. In other words, people don't mind spending money they otherwise would not fork over if it means they're getting it for less. For many consumers, the thrill of snagging a bargain is irresistible. It's no surprise, then, that many people find themselves chronically debt-ridden. Unfortunately, retailers have gotten smart at baiting shoppers with these ploys. By saying that a sale is only available for a limited time, or that items are running out, people are quick to act because they don...

According to a new study in the Journal of Consumer Research , even subtle reminders of idealized bodies can encourage overweight consumers to overspend. Studies show that exposure to body cues (i.e., shapes) can have unintended consequences on seemingly unrelated behavior, such as spending. Seeing a thin -- as opposed to wide -- human-like shape prompts high-body-mass-index consumers to make more indulgent spending decisions. The authors found that mere reminders of the thin-body ideal can cause overweight consumers to feel worse about their own abilities, including management of their spending impulses. In one study where consumers were shown an object with a thin, human-like shape (e.g., something that resembles a Coca-Coca bottle), high-BMI consumers were more likely to buy a higher-priced, Fiji-brand bottle of water than a lower-priced, generic-brand bottle. Another study on shopping found that high-BMI consumers were more willing to take on credit card debt after seeing a...

Declining foot traffic and slumping profit margins are forcing several brick-and-mortar retailers to shift into survival mode. Consumers are doing more of their shopping online, lured by the convenience and great deals offered by Amazon and other competitors. As a result, the stores are tweaking their strategies, hoping to rake in big sales in the process. For one, Wal-Mart has been forking over cash to increase sales online, buying discounter Jet.com and building out its distribution system. It's also invested in remodeling hundreds of stores, reducing inventories, and pushing down prices. Target will forego $1 billion in profits by lowering prices and pushing digital sales with lower margins. It will also spend billions to renovate roughly 600 stores and open 100 smaller ones over the next few years. As part of its ongoing effort to get smaller to combat losses, Sears will be closing another 100 Sears and Kmart stores in 2017. Having already sold off its Craftsman tools b...

McDonald's is rethinking its strategy after losing 500 million U.S. orders over the past five years. The fast-food chain had aimed to widen its customer base by chasing after health-conscious consumers who rarely eat there. But a customer survey conducted last year revealed it was losing customers to other fast-food chains, not to fast-casual restaurants serving healthier food. That's why it has decided to embrace its fast-food identity and focus on its core products. Critics have longed urged McDonald's to focus on its core customers, but McDonald's had added more salads, snack wraps, and oatmeal to its menu in hopes of drawing health-minded customers. Recently, the chain pulled many of those slow-selling products. Interestingly, Burger King similarly attempted to appeal to a broader, more health-conscious customer base in recent years, but it didn't work for them either. McDonald's will now focus on improving the quality of its food to keep existing ...

Ever wonder why losing something seems so much more potent than gaining something? According to a concept known as loss aversion, our fear of loss is greater than our desire to gain. In other words, we prefer not to lose $10 than to find $10. Some studies have suggested that losses are psychologically twice as powerful as gains. It's no wonder, then, that consumers are so easily swayed by ads that include verbiage suggesting that time is of the essence, like "while supplies last" and "this offer ends soon." Even if we might not want or need a product, we take advantage of the offer -- just so that we don't miss out. The person who said, "You don't know what you have until it's gone" was onto something. When we lose something, we lament the absence of something that may never come back. In many cases, they can be things that hold some sentimental value, like an old shirt or Teddy bear. Gaining something -- say, buying a 201...

On Thursday, Los Angeles prosecutors sued four national retailers for deceiving shoppers into believing they got bigger discounts than they actually did. The separate lawsuits alleging deceptive advertising were filed against Sears, Macy's, Kohl's, and J.C. Penney. The retailers falsely advertised higher regular prices for merchandise so customers, leading customers to think they were getting bigger bargains. California law bars retailers from promoting a higher original price unless the product was sold at that very price within three months of the ad. The lawsuits seek civil penalties up to $2,500 for each violation and injunctions to cease false reference pricing to bolster sales. As it turns out, thousands of "sale" items were advertised at false reference prices. One of the lawsuits asserted that J.C. Penney was selling a maternity bathing suit top online for $31.99 earlier in the year, down from the original price of $46. The top was later marked dow...

Your neighbor buys a brand new BMW -- the same one you eyed in a catalog last week -- and you burn with envy. Your coworker purchases a new house and invites you to a housewarming party. You debate whether to turn down the invitation only because you're angry that you haven't found a home for yourself after a frustrating two-year search.  There will always be things others possess that we wish we could own, too.  But comparing yourself to others and always trying to keep up with the Joneses is the wrong approach. If you want something badly, work hard to acquire it -- whether that means saving money for years, cutting vacations for a while, or angling for a promotion.  Once you have it in your possession, take pride in the fact that you accomplished a huge goal by virtue of your hard work -- that you rewarded yourself with something you truly deserved.  In other words, what you achieve should revolve solely around you -- not what others do o...

When I went to the mall recently, I couldn't help but notice one thing as I ambled past several stores: The scents wafting from each of them. In particular, you would think Hollister and Abercrombie and Fitch sell perfume rather than clothing; my olfactory nerves kick into overdrive anytime I'm in those stores checking out shirts and jeans. Retailers are going to great lengths to get consumers' attention. Think about all the stimuli as sailing our senses at a mall: myriad advertisements, people walking to and fro, the smell of mouth-watering pizza coming from the food court -- the list goes on. Thus, it comes as no surprise that companies are trying unorthodox strategies for getting into our heads -- and pockets -- not the least of which is pumping pleasant smells into their stores. It all factors into their efforts to create a welcoming atmosphere -- which may encompass everything from dim lighting to clutter-free aisles. Studies have found that consumers are twi...

Here's some food for thought: To my dismay, when I go to the grocery store, I often see people grab products nearest them -- the ones placed at the very front of each shelf -- without thinking twice about it. Whether due to laziness or just plain ignorance, they are putting in their carts items that are potentially nearing expiration. Grocery chains follow the "first in, first out rule." They obviously want to get rid of older inventory first, so they make those more prominent so that consumers are more likely to get them. Newer goods, on the other hand, are placed toward the back of the shelf. Many people arrange their items similarly at home so that they lessen the chances of items going bad. You can probably guess where I'm going with this. As consumers, we want the most bang for our buck, and that means buying the freshest items with the longest shelf lives. Whether you're buying milk, bread, or other perishable foods, you'll want to reach for it...

According to a study published this month in the Journal of Consumer Research , consumers shouldn't be so quick to let online user ratings guide their purchase decisions. Indeed, the study suggests that the belief that online user ratings, which virtually all retails provide on their websites, are good markers of product quality is largely an illusion. For the study, researchers investigated user ratings for over 1,200 products across 120 product categories, from blood pressure monitors and bike helmets to air filters. Their analyses reveal a very low correlation between average user ratings of items on Amazon.com and product ratings, based on objective tests, found in consumer reports. Further, the likelihood that an item with a higher user rating performs objectively better than an item with a lower user rating is only 57 percent, which casts some doubt on the validity of user ratings. The study also examined what information consumers rely on when judging the quality of ...

I'm talking about Subway's sandwiches, people! What'd you think I was referring to? Apparently, many of the "Footlong" sandwiches we've been eating at Subway may not be as long as promised. In 2013, an Australian teenager posted an image of his sandwich on Facebook that measured only 11 inches. It generated international media attention, with The New York Post writing that four out of seven Footlongs it bought in New York measured only 11 or 11.5 inches. A class-action suit was filed against Subway thereafter. A judge last week granted final approval to a settlement of the suit. As part of the settlement, Subway agreed to take steps to ensure its bread is at least 12 inches long, with franchisees now required to use a tool for measuring bread. I'm glad Subway was busted. We work too hard for our money to be stiffed. Any company that tries to cut corners and mislead consumers in any way should be dealt with appropriately. In this case, no monetary...

If you have the means to buy a new home and are in the market for one, now's the perfect time to do it. Why? The average 30-year fixed rate mortgage dropped this week from 3.72% to 3.65%, its lowest point in 10 months. This makes six consecutive weeks that mortgage rates have dropped. Despite the Federal Reserve's decision to raise interest rates at the end of last year, mortgage rates have continued to slip. Volatility in financial markets fueled by concerns of a global economic slowdown and the falling price of oil have made investors gravitate towards U.S. Treasuries, which has kept rates low for prospective home buyers. Though it was speculated that the rate hike could come in March, Federal Reserve Chair Janet Yellen said market conditions have become less conducive to growth, which could point to a delay in the Fed's plans to raise the federal funds rate. The average rate on a 15-year fixed rate mortgage also fell to 2.95%, down from 3.01% the previous week....

A recent study reveals that many people spend an average of six hours at the mall with each visit. We've all been there: We intend to make a quick purchase at the mall, whether it be a t-shirt or pair of shoes, only to wind up spending several hours there. Not surprisingly, the higher the number of people accompanying us, the more challenging it becomes to keep the visit under an hour. But six hours seems like a boatload of time. Can you imagine how many hours of exercise or reading you could put in if you stayed home instead? I would assume that many mall-goers purposely while the day away at the mall (especially if there's inclement weather or there are children in tow), while others simply lose track of the time while browsing countless stores. The problem with the latter is that it often translates into people buying far more things and spending far more money than they should. The solution? Consumers should aim to leave the mall as soon as they've snagged what ...

You may be surprised to learn that many consumers often buy things that aren't necessarily in line with their personality. Why would they do this, you might ask? For starters, many people do it to fit in. For example, those who don't drink alcohol might still spring for a glass of wine at a Happy Hour event -- just so they can blend in with the crowd a bit more easily. Others might fork over the money for these purchases when it's something they can share with other people. You might be a museum hopper while your partner has no interest in such places. Still, he or she might purchase two tickets to the local art museum and take you there on your birthday. Studies have found that whether they buy material items like expensive watches or life experiences like vacations to the Bahamas, many consumers find themselves no happier following the purchase than they were before. Why? Chances are that the purchased doesn't align with their values and personality. A cou...

Gift cards are yet again expected to be among the hottest gifts of the year.  This should come as no surprise considering the myriad conveniences of gift cards as opposed to other items, both for the buyer and seller. When it comes to the buyer, he or she doesn't have to worry about the item not fitting the recipient or possibly breaking on the drive home. It's also nice not to have to stuff cash or a check in an envelope, which, studies show, people are more likely to misplace. The person who receives the gift has the freedom to use the gift card to buy whatever item(s) he or she desires, provided that the total doesn't exceed the amount on the card. The only time a gift card becomes an inconvenience is when the retailer(s) listed on the card are those you wouldn't be caught dead shopping at. For example, how would you feel if you, a vegetarian, received a $50 Burger King gift card? Before giving anyone a card, consumers should make sure the recipient regularly...

As someone who's been a victim of identity theft multiple times, I know firsthand how important it is to keep your personal information safe, and how frustrating it can be once it's compromised. Here's a valuable tip: If you can't use cash, use credit cards. You should aim to use debit cards only in the event that you need to withdraw money from the ATM. Credit cards offer two key advantages over debit cards: 1. They're safer: Most credit cards these days offer consumers zero liability protection. This means that they're not responsible for any transactions made without their authorization. All fraudulent purchases are removed, thus bringing the cardholder's balance to where it should be. With debit cards, the process isn't as hassle-free. The bank will dig deeper to ensure you didn't make the transactions and will usually require you to fill out and send over paperwork. What's worse, you have to wait for the bank to give you your money b...

Shoppers spent $10.4 billion at stores on Friday. While that may seem like a large number in and of itself, it's a rather tepid showing when you compare it to sales generated a year earlier. In 2014, consumers forked over a more impressive $11.6 billion. Moreover, store sales on Thanksgiving this year fell from just over $2 billion to $1.8 billion. So what's to blame for the drops, exactly? As you can probably predict, consumer behaviorists point to online sales, which jumped 14 percent on Black Friday from 2014. All told, consumers who took to the web for their purchases spent $2.72 billion. Not too shabby, right? And we haven't even gotten to Cyber Monday (Nov. 30), which is hands down the busiest e-commerce day of the year. Perhaps this suggests that people are getting tired of braving the crowds (and the elements) to snag a good sale in person. Reports of people camping out in stores and trampling over others to grab everything from TVs to denim jeans has like...

Have you been yearning to buy a new Mercedes for years?  Maybe you’ve thought about stopping by your local Macy’s store on the way home from work and snagging that posh Michael Kors watch you spotted there last month.  Or, you’ve contemplated replacing a dingy pair of sneakers ensconced in your closet with a new set of Sketchers you instantly became smitten with after seeing them in a newspaper ad.  According to psychologists, this zeal to acquire products is only ephemeral, as consumers derive more pleasure from desiring them than they do from actually owning them. Human beings are known to long for the unobtainable – whether it’s an old flame who got away after high school or a snazzy smartphone that’s a bit out of our price range. Once the object is ours, that seemingly unshakable sense of yearning and excitement that we felt earlier dissipates, and it does not resurface until we set our sights on a new object of desire. If you think about it, this makes complete sen...