This week starts the holiday sales, Retailbound looks at trends in consumer spending, including how consumers are cutting back and what defines value to today’s customer.

Let’s face it — people are struggling in today’s economy.

We’ve all heard how consumers are “trading down”, so we looked to recent research to see what exactly that means and if the same applies across all categories.

According to one of the top marketing research firm’s GfK Roper, thirty-nine percent of U.S. consumers are eating at less expensive restaurants; 36 percent are switching to cheaper brands of groceries; and 31 percent are switching to cheaper brands of household goods … but what about electronics?

Consumer buying behavior is much different for a TV versus shampoo. We had to ask, are consumers “trading down” on their consumer electronics purchases the way they are with consumer goods purchases?

The answer is yes … and no.

Clearly, value is more important than ever.

GfK Roper found 79 percent of American adults agree, “the most important thing about a brand is that it gives good value for the money.”

So we looked at what defines value in today’s economy:

Durability: 88 percent
High quality: 79 percent
Environmentally friendly: 60 percent
Makes my life easier: 59 percent
Good warranty or service plan: 59 percent
Inexpensive: 51 percent
Multiple functions: 48 percent
Personalized to my tastes: 43 percent
Looks good/stylish: 19 percent

While over half say price is important, durability and quality far out-rank price. Environmental friendliness is also climbing the ranks in importance to consumers. This can be seen in many different areas of consumer behavior — take the switch from buying bottled water to reusing a container. The average selling price for bottled water has fallen 30 percent since
2001, according to the Beverage Marketing Corporation.

And an April study conducted by the Consumer Electronics Association found 75 percent of consumers are concerned about rising home energy costs. In the past year, 76 percent have taken action to reduce their home energy usage.

This is an indication of consumers’ willingness to buy products that aren’t as disposable, thereby reducing their energy usage. Consumers are showing a readiness to pay more for quality and sustainability so they can save in the long run.