The Effect of Weather on Consumer Spending
Introduction
Effects of weather have been studied in relation to finance, social, and psychological fields. In the context of finance, weather is considered to affect the movement of stock. This influence on stock movement is influenced by moods or feelings of the consumer. Social researchers have proved that incidences of homicides and assaults are influenced by weather. Variability of barometric pressure influences the rate at which suicide is committed within the society. Despite these revelations, effects of weather in relation to economic/market literature have been previously ignored. This research is developed to determine how weather influences the behavior of consumers. It also seeks to determine how the variables/weather affects the behavior of individuals in a particular retail context. Extensive literature review revealed that weather affects consumer behavior at three categories; keeps people within their homes, affects volume of sales turnover, and influences the inner state or feelings of an individual. This research adopted two hypotheses to solve the research question; Weather variables, and sunlight in particular, affects consumer spending, exposure to sunlight reduces negative effects, as negative effects decreases, consumer-spending increases and negative effect mediates the effects of sunlight on consumer spending (Kyle B. Murray et al. 2010).
Description of the population
This research conducted three separate studies in order to confirm the laid down hypotheses. The first bit of the study labeled study 1, the research focused on an independent retail store located in Northern American. The study focused on sales data from this retail store to determine the influence of weather in a particular retail set-up. This study population majors on beverage products. The second part of the research labeled study 2, focused on individuals as study subjects. The study population consisted of 33 people chosen randomly from a North American University. In order to motivate the case subjects, each member of the study population was awarded $100 per day for a period of twenty days for every survey completed online. Unlike the first part of the study, the second bit focused on the mood of the population, their expenditure on coffee/tea plus the subject’s consumption of the beverages. The third study consisted of 78 University student from Northern part of America (Kyle B. Murray et al. 2010).
Brief statement on the research methods used
The first study of this research analyzed data obtained from daily sales of the retail store for the past six years. This was related to the daily weather conditions experienced during the six years. The study also considered the days when the store was closed plus holidays during the studying duration. The second and third studies used structured online questionnaire that was filled by the students. The questions were set in relation to spending behavior on beverages, consumption of coffee and tea, and the influence of weather variables on the moods of an individual (Kyle B. Murray et al. 2010).
Brief statement of the evaluation tools (metrics) used
Log transformation model was used to analyze the data from the retail store. The model or tool used proved to be effective in that the researcher was able to normalize the turnover data for the past six years and related it to the weather variables. In order to determine how weather conditions influence sales, p-values and t-values metrics were applied. These gave accurate information about the existing relationship between weather and consumer behavior. The second study used pooled PANAS model to analyze the data collected. For accurate results on effects of weather on the moods of persons, t-values and p-values metrics were also applied (Kyle B. Murray et al. 2010).
Summary of the conclusions presented
This research found out that weather variables, especially sunlight affected the sales by influencing the behavior of consumers. Findings also revealed that sunlight has great influence on the moods or feelings of individuals. Sunlight affects the willingness of individuals to obtain goods. This effect is moderated by the negative effect in relation to the consumer. This is considered an improvement on the previous researches on the influence of weather on individual’s consumption. This research proved that individuals prefer to go out of their homes during summer than winter season. During summer period, the volume of turnover is higher than in winter season. The research also confirmed that sunlight reduces negative effects attached to spending by consumer. This in turn increases the rate at which individuals consume beverages like tea and coffee in the context of this research (Kyle B. Murray et al. 2010).
Evaluation of work
This research article observes the conventional procedure hence qualifies as a good research. It is based on extensive research backed by thorough literature review. The author also uses valid and accurate to support his findings. The research has a clear research question (effects of weather on consumer spending) to help guide the research activities. The work also present four well stated hypotheses that give the research clues on the field in which study is conducted. The methods used are applicable to the subject population and the type of data collected. The metric tools used to analyze the data are accurate hence provides valid and proven findings. The population size is representative hence appropriate for the conclusions made.
Reference
Kyle B. Murray et al. (2010). The Effect of Weather on Consumer Spending. Edmonton, Canada; University of Alberta.
