Market Insights: A Selection From The Report
Consumer Confidence a Dynamic Phenomenon
One of the most striking findings of this Packaged Facts analysis of Experian Simmons NCS consumer confidence data is that “consumer confidence” is a highly fluid concept. From 2005 through 2009 there were tens millions of Americans who migrated in and out of the ranks of Confident and Anxious Consumers. At the end of this period, the demographic profile of Confident and Anxious Consumers had been dramatically transformed.
Many Changes in Demographic Profile of Anxious and Confident Consumers
The demographic profile of Confident and Anxious Consumers changed radically during the recession.
Compared to 2005, the Confident Consumer population base now includes a smaller percentage of non-Hispanic whites (62% vs. 73%) and consequently a higher proportion of multicultural consumers (38% vs. 27%).
The same period also saw a reversal in the political composition of Confident Consumers. Whereas in 2005, only 24% were Democrats and 41% were Republicans, by 2009 only 24% were Republicans and 41% were Democrats. The percentage of political conservatives dropped from 45% to 33%, while those identifying as conservative evangelical Christians declined from 38% to 31% of the Confident Consumer segment.
Marketers Try to Redefine Meaning of Value in Unpredictable Post-Recession Environment
Retailers and marketers are coming to grips with the need to reposition their brands in the post-recession era. After surviving a period when they and their customers defined value purely in terms of price, marketers are searching for strategies that transcend the idea that the main benefit of buying their brands is to save money. A Macy’s executive has noted that the retailer is “working to more clearly define Macy’s value to our customers in a way that isn’t focused only on price,” and is concentrating on longer-term strategic issues such as its localization program. A Kimberly-Clark Corp. executive has pointed out the need to focus on innovation that is truly meaningful to customers. As noted in Advertising Age (February 1, 2010), “A big part of the coming-out-of-recession strategy lies in keeping the value messaging that worked so well in the downturn, but now redefining the meaning of value. Whether it be through transitional messaging, product mix or innovation, the bottom line of marketing your way out of the recession boils down to honing your relationship with the consumer.”In the News
Confident U.S. Consumers Make Much Anticipated Return to Post-Recession Marketplace
New York, April 29, 2010 — Consumer confidence and economic optimism are on the upswing in the first half of 2010, accompanied by new opportunities for marketers and retailers to redefine the meaning of “value” in a still unpredictable economic environment, according to The Post-Recession Consumer in the U.S. by market research publisher Packaged Facts.
“We anticipate that consumers traumatized by the severity of the economic downturn will continue to watch their wallets in the short-term,” says Don Montuori, publisher of Packaged Facts. “In response, retailers and marketers are coming to grips with the need to reposition their brands. After surviving a period when they and their customers defined value purely in terms of price, marketers are searching for strategies that transcend the idea that the main benefit of buying their brands is to save money.”
The report, based largely on Experian Simmons National Consumer Study (NCS) data, reveals that as recently as the first half of 2009, the number of fiscally pessimistic consumers increased significantly. By the time economic optimism rebounded in the second half of 2009, the number of confident consumers increased 25% over the first half from 38 million to 48 million Americans.
Packaged Facts identifies confident consumers as essential to the post-recession rebound due to their above average household incomes and the numerous other characteristics that make them amenable to marketing appeals that transcend the incumbent “price equals value” motif. For example, confident consumers are eager to shop in new stores, try out new products and experiment with new foods. They see the benefits of advertising and are much more likely to pay attention to ads in a wide range of platforms. Confident consumers are also early adopters and influencers who shop frequently and enjoy doing so. In addition, the cohort has a higher likelihood of making a wide range of major purchases in the next year.
The Post-Recession Consumer in the U.S. sifts through five years of Experian Simmons National Consumer Study (NCS) data to follow the twists and turns in consumer confidence before, during and in the immediate aftermath of the most severe economic downturn in 70 years. The report contrasts the attitudes and behavior of consumers on the highest end of the Consumer Confidence Index of the Experian Simmons NCS (“Confident Consumers”) with those on the lowest end (“Anxious Consumers”). By doing so, it sheds light on the conflicted mindset of consumers as the recession loses its grip and suggests how marketers might respond to their customers in an uncertain post-recession economic environment.
About Packaged Facts - Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services.