Today’s consumers are well informed, individualistic and demanding. There are key factors which negatively affect the consumer market and retail business. The middle class is shrinking and has lost 40% of their financial net worth over the past five years. Income levels have stagnated and most of the growth shown has been attributed to dual income households. The cost of housing, the recession, and unemployment have caused young adults to seek the security of their families. The number of young people between the ages of 25-34, living with their parents, has risen 19% for males and 10% for females. Economic indicators in the U.S. have shown that the recession is over, but many consumers are still feeling the effects of the economic downturn because of the high cost of healthcare, education and other household expenses. Median incomes are declining and consumers are looking for ways to stretch their buying power. For a retailer to survive in this kind of economic environment, it is essential to practice value marketing to attract and target the middle class which purchases most of household necessities. Value marketing can provide consumers with the products or services they want, which fit their lifestyle and budget, and make them feel like they are getting the best deal possible. The essence of value marketing is total customer satisfaction by adding “value†to accompany products or services-more than just low price and promotion. This commitment to quality products and services creates trust and loyalty. Most retailers utilize value marketing during a recession and when consumer buying power is declining. The consumer is looking for the best deal possible for their needs and necessities. Many consumers have become accustomed to only buying when a product or service is on sale.

This research paper will attempt to explain how important value marketing is for many consumers and retailers. A literature review will be conducted, a questionnaire will be developed and distributed among consumers. A convenience sampling will be utilized and the collected data will be analyzed using SPSS software and the findings will be presented.