A new Harris Poll finds that more than half of all adults are saving money by purchasing more generic brands, while over 40% are brown bagging more often and cutting back on visits to hairdressers and barbers. Over 30% have switched to tap water and canceled one or more magazine subscriptions. Smaller percentages, but many millions of people, have also cut down on dry cleaning, cut back or canceled cable television service, canceled a newspaper subscription, stopped buying their morning coffee, changed or canceled their cell phone service, increased their use of carpooling or mass transit and canceled their telephone landline service.
Category: Purchase Intent
A new Barkley Cause survey finds that while consumers have decreased spending on charitable giving, 91% expect companies to fill that gap and showcase their commitment to the greater good (up from 86% in 2008). The study also reveals that cause can make strong business sense for brands by increasing trial, loyalty, sales, and even higher prices at the cash register. Of those consumers surveyed, 74% say they purchased a brand because it supported a cause, 75% would try a brand they normally wouldn't because it supported a cause, and 64% would pay more for a brand because it supports a cause that is important to them (up from 61%, 64% and 52%, respectively, in 2008).
The financial markets signaled excitement about rising home sales by closing higher on Monday. Most investors welcomed the good news that home sales in October had risen for the second month in a row. Experts believe more buyers are coming into the market because of two factors: Falling prices and the federal tax credit for first time home buyers.
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.
Overall, the travel market has struggled in the recent recession. Even business travel has been curtailed by a number of companies. But a glimmer of good news may be appearing for travel operators. The results of a recent Deloitte survey indicate that more consumers will at least maintain last year’s travel levels while another 25% plan to travel more in the next few months.
Due to its compelling image as an innovative yet accessible beverage that is good tasting, good for you, and budget friendly, tea has remained profitable, with 2% annual gains in 2008 and 2009, according to new research. Packaged Facts estimates the U.S. market for tea sold through retail and foodservice channels at $9 billion in 2009, forecasting a 5% increase in 2010. “Tea’s healthfulness is still, of course, the beverage’s primary appeal, but in the current market environment consumers are increasingly recognizing good quality, customized tea as a comforting, affordable premium beverage splurge,” says Don Montuori, publisher of Packaged Facts.
More than three-quarters of traveling pet owners would take Fido or Fifi on every vacation if they could, although more than half report difficulty finding pet-friendly accommodations, according to a recent survey commissioned by AAA and Best Western International. Many hotel operators have discovered the popularity of traveling with pets and are making special efforts to accommodate four-footed friends. The most popular pet-inclusive vacations are visiting friends/family (73%) and road trips (56%).
The Muslim population in the U.S. is estimated to be somewhere between 4 and 8 million individuals. According to the U.S. State Department, about ¾’s of these Muslims are African American. Considered to be the fastest-growing religious group in this country, the number of Muslims will exceed the number of Jewish people in the U.S. by next year. In addition to expanding their vocabulary and learning more about Muslim holidays, marketers will need to find effective ways to tap into the buying power of this market which now hovers at around $170 billion.
According to new research by marketing agency Smarty Pants, children ages 6–12 gravitate towards iconic, familiar, inclusive, and parent- approved brands. Cross-generational appeal is important as kids want their parents' approval and parents want their kids to be happy. Affordability is also a top 10 driver of kid affinity since it "increases the likelihood you can buy it with your own money or your mom will buy it for you."
According to a new report from The Hartman Group and Packaged Facts, household cleaning products with a sustainable side have begun to enter the American mainstream. Formerly, the act of cleaning was a form of "germ warfare," and entailed a combative relationship between consumers and their environment. Recently, however, more and more consumers talk about the idea of working with nature, not against it, to naturally restore balance to their home environment. As with the food and beverage and personal care categories, consumers have become increasingly aware of the potentially harmful effects of artificial and chemical-based products on personal health as well as environmental safety.
After several quarters of declines in purchase incidence across most categories, consumers returned to purchasing a larger variety of products from convenience stores in the second quarter of 2009, according new research from The NPD Group. Bottle/can soda, frozen/slushy drinks, and other tobacco products all increased purchase incidence by +0.7 percentage points compared to second quarter 2008. "With gasoline prices below last year's historic highs, many consumers are beginning to feel the freedom to pick up a single serve beverage or a snack," says David Portalatin, industry analyst for NPD's auto unit. "In some cases, consumers may look at these items as an inexpensive meal replacement."