Consumption Patterns in the Aftermath of the Financial Crisis: The Case of Baby Boomers

Abstract

This study examines the consumption decisions of baby boomers (40 -64 year-old age cohort) with $75,000 -$140,000 in household income in the immediate aftermath of the financial crisis of 2007-2008 using the Consumer Expenditure Survey data of Bureau of Labor Statistics in 2009. Increasing unemployment and foreclosures of primary homes led to variability of income, which became a major consideration in evaluating consumption choices. In addition, we draw on Weberian social class theory to identify social influence on consumption decisions. Gender differences in processing information pertaining to new product purchases provided yet another means of stratifying the sample. By juxtaposing economic variables on social identification and genderbased preferences, this study sets forth the explanatory variables underlying eight separate product purchase decisions.