Global Marketing

Spiking Gas Prices Shifting Consumer Behavior

There are many factors contributing to spiking gas prices, which are currently being triggered by Russia's invasion of Ukraine. A week after the invasion began, U.S. has prices rose to an average not seen since 2005. As of March 19, the national average gas price was $4.26 a gallon, leading drivers all around the nation to shift their driving habits.

What we should take out of this scenario is how a political event across the world can affect an aspect of our daily lives, in a way that is not directly related to that actual issue. Meaning, the war between Russia and Ukraine has not led to war in our own nation, but a shift in gas prices that Americans are adjusting their life to.

According to a AAA survey, 23% of drivers, aging 34 and younger, said they would carpool to deal with the higher prices. The older of 35 and above said they would cut back on extra spending and combine errands within their commute.

As summer is approaching, these high prices are not going anywhere. A majority of summer trips and vacations are taken by car, so as demand goes up, so does the price. So, what can marketers or businesses do to combat this shift in consumer behavior?