Management & Consumers in an Era of Stagflation

T HE NATURE and quality of the interactions between marketing management and consumers have changed drastically since the start of the current economic stagflation in 1973. A stagnant economy in a period of inflation, stagflation, may be experienced in different forms and to different degrees. Yet all forms and degrees of stagflation are totally new, and their effects on both marketing management and the consumers are quite drastic. The primary objectives of this article are: (1) to discuss the effects of stagflation on business and its consumers; (2) to point out the resulting changes in the marketing mix and in consumers' attitudes and choices; and (3) to derive recommendations for marketing management. To achieve these goals, I conducted two related surveys designed to measure the impact of, and adjustments to, stagflation on the part of marketing management and consumers.