A key fact often ignored in the current debate on the lasting effects of the recession is the wide variation in the way American consumers have internalized the recession experience. A new study, entitled “Marketing to the Post-Recession Consumers,” by the marketing strategy and research firm Decitica, addresses this gap by examining the differences in how consumers have responded to the recession. In the study, Decitica identifies four distinct consumer segments emerging from the recession: Steadfast Frugalists, Involuntary Penny-Pinchers, Pragmatic Spenders and Apathetic Materialists.
Approximately 69% of all American adults – fully 88% of internet users – have gone online to get help with personal economic issues that have arisen in the recession and to gather information about the origins and solutions to national economic problems.
The NPD Group, Inc. sees that for back-to-school 2009 consumers will continue to slow their spending but that the decrease won’t be as big as the one seen in 2008. Overall, consumers tell NPD that they aren’t in a hurry to shop. This year there was a 5% increase in the number of consumers saying they either ‘haven’t started’ or ‘don’t plan to shop’ for back-to-school as of July 2009.
The overall OTC market saw increases of 3.2% during non-recession years and only 1.2% during recessions according to the latest research Impact of Recessions on the U.S. OTC Market from worldwide consulting and research firm Kline & Company.
Fewer consumers expect to reduce their spending on back-to-school items compared to last year, although economic concerns will continue to weigh on their shopping plans, according to a new survey by Deloitte. The number of people on the look out for value is up, as 74% plan to buy more items on sale.
“…in a recession ‘value’ takes on a different meaning in the eyes of the client,” writes sales consultant Paul Collins in a recent article for Rain Today. Collins presents eight tips to boost your business’s value during this rough economic time.
What was initially a tragic occurrence for so many has turned into an opportunity for at least a few of those, closest to the front lines.
I’m not sure when it happened, but soon after we stopped using the term “Sales”, we stopped “Selling”. So now, we are a community with something to sell, without “Salespeople”… Which makes us a community with something to “Buy”. I’m sure I don’t have to tell you that there are a lot fewer Buyers, out there.
The dreaded “R” word has been on people’s lips for months: Are we headed for a recession? One thing’s for sure — the economy is in bad shape. Consumers are spending less, houses are losing value, and the stock market has seen drastic drops.