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New Study Suggests the Consumer Will Be Back
New York City based Insight Research Group released a study today to determine prevailing consumer attitudes regarding the recession.
New York City based Insight Research Group released a study today to determine prevailing consumer attitudes regarding the recession.
“This study suggests that Americans attribute the cause of the current recession externally. They feel the recession has been brought upon them by others and do not see their own choices as key in causing it,” says Dr. Boaz Mourad CEO of Insight Research Group a Ph.D. from Princeton and Professor of Psychology at NYU. “This lack of truly internalizing the recession makes consumers more resilient than the economy as a whole.”
The study found that only 11% of Americans believe that their own personal spending behaviors were part of the problem that led to the economic downturn. And 33% (36% among women and 31% among men) think that U.S. consumers are responsible for the downturn, compared to 87% for both the Wall Street banks and the U.S. government.
The study also found, unsurprisingly, that 90% of Americans think the economy is not good. What was surprising was that only 42% think their own personal situation is not good.
When asked about their feelings on the current economy, respondents are much more likely to feel frustrated (31% say describes feelings very well) and stressed (26% say describes feelings very well) than depressed (15% say describes feelings very well) or defeated (6% say describes feelings very well).
“’Frustrated’ and ‘stressed’ indicate outwardly-directed feelings (blaming external factors), while ‘depressed’ and ‘defeated’ are more internally directed,” notes Dr. Mourad.
On a product attribute level, the recession has not only made respondents look for product categories like food or shoes to be cheaper, but also are focusing more on attributes such as “brand I trust”, “classic or timeless style” or “enjoyed by my whole family”.
“As a result of not being as concerned with their own financial situation as with the economy as a whole, respondents have the mental capacity to focus on other product attributes than just the price,” observes Dr. Mourad.
In regards to advertising the study suggests that respondents appear to want ads to indirectly address the recession rather than too explicitly rubbing it in their face.
Attributes like “optimism” and “warmth” are stronger drivers of appeal for ads than “serious”, “thrifty” or the extent to which the ads are sensitive to the current economic climate.
“As respondents attribute the causes of the recession externally, they are not changing their deeper values.This means that the change in behaviors the recession is causing is only temporary. Since respondents have not truly changed their consumption-oriented values, they will most likely largely revert to their old behaviors once external conditions change,” concludes Dr. Mourad.
FURTHER IMPLICATIONS
For brands… this means that they should not alter their whole positioning in light of the recession. Such a repositioning would be out of line with how consumers are responding to the recession. Instead, brands should accommodate the current temporary need for relief.
For ads… Findings indicate that respondents are looking for ads to convey optimism and warmth. Similarly, they should acknowledge the recession implicitly rather than explicitly.
For fashion brands… this means emphasizing inexpensiveness to some extent, but not focusing solely on this.
For entertainment media… it means offering shows that provide comfort, escapism and a perking-up of viewer’s moods.
For hotels… it means not only focusing on price, but also on the “new basics”, such as reliability and service. Attributes such as fun or excitement are not as important in the current economic climate.
This study was undertaken by Dr. Boaz Mourad, Co-Ceo of Insight Research Group. Ph.D. from Princeton (psychology of decision making) and Professor of Psychology at NYU.
Insight Research Group is a brand research and strategy firm that creates highly customized work for a wide range of businesses and organizations.
For additional information or to arrange an interview with Dr. Mourad, Contact: Chris O’Brien at freelance.obrien@gmail.com or (917) 216-0235.
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Insight Research Group is a brand research and strategy firm that creates highly customized work for a wide range of businesses and organizations