A Portrait of a Post-Recession Consumer
May 3, 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 a new report titled "The Post-Recession Consumer in the U.S." from market research publisher Packaged Facts.
The report 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. It 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 subsides and suggests how marketers might respond to their customers in an uncertain post-recession economic environment.
The report 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. It 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 subsides and suggests how marketers might respond to their customers in an uncertain post-recession economic environment.
"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 both 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 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 percent 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.
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