Marketers of Small-Ticket Items to Ramp Up Promotions

Researchers have recently released both good and bad news for marketers. Predicting consumer buying patterns and the lattemarketing changes that businesses should use to spur spending can be challenging. Harris Poll analysts say that consumers are feeling increasingly comfortable about spending money on big-ticket items. But, they’re paying close attention to how little expenses are adding up and they’re being conservative in new ways. This is a signal that some marketers will need to increase promotions to encourage people to buy more or roll out a different suite of products and services to enhance their business.

Since last year, the number of consumers who have cut down on dining out (62%) and on entertainment spending (59%) has risen. More consumers are also refilling water bottles instead of buying bottled water (33%) and reducing dry cleaner use (22%). Media companies may find themselves particularly challenged as 24% of adults are cutting back or cancelling cable TV, 29% have cancelled at least 1 magazine subscription, and 18% have cancelled a newspaper subscription. On the other hand, more consumers are in the market for a new home or condo (10%), a new vehicle (16%), or a new boat or RV (7%).

These numbers seem to suggest that consumers are willing to pay for products they consider to be investment-based or that will make a significant difference in the long  run. Shoppers are watching their daily budget more closely so marketers will have to appeal to the sense of value to convince them to splurge on daily luxuries, like a latte, which was a more common practice only 5 years ago.

Have you noticed similar behavior in the consumers that your clients are marketing to?

Kathy Crosett

Kathy Crosett

Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.
Kathy Crosett

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