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our capitalist society unravelling?
Media Post News, Marketing Daily
Deloitte Study: Consumers Love Spending Less
Summer 2010
July 14, 2010
The good news from Deloitte's "New American Pantry" is that the vast majority of consumers don't feel bad about the recession -- they actually love it: 81% of those surveyed say they find saving money, using such techniques as coupons or loyalty programs, fun.
The bad news is for brands everywhere: The more adept consumers get at saving, the less they care about buying a certain brand, and are more willing to trade down or in favor of a sale than most marketers imagine. Think they've got a favorite brand in many categories? Ha: 51% percent say they are loyal to no more than two to three brands, in any given supermarket.
"There was a very palpable sense of remorse and embarrassment about the way they used to shop," Pat Conroy, vice chairman and Deloitte's consumer products practice leader in the U.S., tells Marketing Daily."They have a real sense of 'I can't believe how wasteful I used to be when I shopped. I didn't even know what was in my pantry and freezer.' Now, it's almost like they are energized by this new approach -- it's like saving money when they shop is a new kind of game, a way to stick it back to the man."
The survey, conducted with the Harrison Group and based on data from more than 2,000 adults, revealed four distinct types of consumers. It calls the largest group (at 36%) spectators -- they are the youngest and most affluent group, the least impacted by the recession and the least likely to change their shopping habits.
Next come the sacrificers (22%), who are the lowest-earning group, and the most impacted. Next (at 21%) are the super planners, who also take the most delight from saving. Finally, planners -- also 21% -- focus more on saving money through food preparation and menu planning.
Of the four, only the sacrificers are resentful about the recession's impact on their shopping, and somewhat bitter at the continual sacrifices the economy has demanded. "For them, there's a real sense of being hit by bad cir stances from all sides," he says.
Overall, 79% say they feel smarter about the way they shop versus two years ago, 65% feel like they aren't sacrificing very much, and 61% say they are more price-conscious. Loyalty cards are critical: 84% have at least one, and 65% say they are either essential or very important as a money-saving method; 44% now use loyalty cards in grocery stores every time they shop.
But brands are clearly huge losers, with 31% saying they are less brand-loyal, and 85% saying they have found several brands that are just as good as national brands. (In fact, 80% believe most store brands are manufactured by the traditional national brands, anyway.)
Deloitte also asked consumers to weigh in on brands in 21 categories -- more than 100 brands in all -- and found that only a handful are what it dubbed "destination brands," which he says means "an abundance of consumers say 'I will seek them out, regardless of channels, and for the most part, regardless of price." The second category was "preferred only" brands, which consumers say they would like to buy, but won't go out of their way to find them.
And finally, there was a category of "sale-only" brands, where consumers say they would only buy them if there were a significant promotion. "Consumers have a real 'I don't need 'em' at ude toward this final category," he says, adding that the implications for marketers are considerable. "There are brands offering coupons and promotions that probably don't need to, and others that need to know how little they are valued."
But Conroy says it would be wrong to think consumers only care about price. "What consumers are really focused on is the value," he says. "They're saying they won't buy large sizes because they are cheaper -- if it results in waste, for example. What's driving this is not just the urge to spend less, but to get the most value."
http://www.mediapost.com/publication...art_aid=131827
our capitalist society unravelling?
Uh, no, its the invisible hand of the market at work. The market is efficiently choosing winners and losers based on a set of criteria. The only thing that has changed has been that the criteria has shifted.
And capitalism has created better alternatives. HEB Ketchup is just as good as Heinz at half the price.
No it's not. I would say it's working, and better than before in this case. people are now making smart decisions with purchases rather than letting commercialism affect them too much.
You know though. I was one who boycotted Heinz when Kerry ran for president. Only about half successful. They have some products that I still prefer.
Everything from Heinz is processed crap.
The consumer society is unsustainable.
We are so ed because we can't imagine, won't even try to imagine, an economy that is not based on consumption.
Healthy US economy was 70% consumption.
Knock that down just a few % with the Casino Banksters' Great Depression, and the economy craters, 20M unemployed.
Boutons you are really a bitter guy. What's the scoop on you? Age? Work? School? Nothing too detailed, just curious where your hateful perspective is coming from.
Just stating facts, CC, You Can't Handle The Truth?
Unless I'm mistaken, he's French and he lives in Texas.
Sound's like he's a North Korean spy, who jealous at how well we have it compared to his motherland.
this is what troubles me. when we start to reduce consumer spending, we are going to hurt our economy even more. consumers will find themselves without work. market at work=good thing=crank up the unemployment rate even more?
But bottom line: we cant afford to spend less walking the tightrope we are currently on.
What is your solution? Taxes and regulations are driving good wage jobs away. We need more tax payers, not tax users. Illegal workers are taking jobs that our people should be working.
seriously. What is your solution. We have run out of tax payers. Start bleeding them more, and those remaining will flee too.
regardless how you spread it, THERE IS A BREAKING POINT. IMO, we have already crossed it and are on life support.
We need new markets to take off. it doesnt have to be green tech, but that would be a win-win. we need a silicon valley part two.
I think the resistance to this by people like yourself is stifling our economy to its knees
And the batteries are draining faster than they can charge.
C'mon people, get a grip. The world is not ending. The smart people quit spending and are paying down debt. When they feel more comfortable with their government they will start spending again. Probably in November 2012.
If not green tech, some new industry needs to save us. right now our economy is being driven by iphones. this is why we suck
what the are you talking about? the tax cuts bush gave to the wealthy did to help our country. and they are still in place, yet we find ourselves in the worst condition we have been in 70 years.
the so-called batteries are trash, unfit for made in mexico toys.
they wouldnt know how to find their ass with both hands. we have turned our economy over to private parties, wealth makers, and this is what we get. Im not saying socialize, Im saying get them the out of the wheelhouse.
Agreed.
it will be a turning point. If we keep democrats in control, we will continue downhill. If we get republicans, and even democrats with enough with "tea part" ideals, we have a chance to turn it around.
electing a new president wont do a ing thing. bankers will still have thier way with policy and with the president himself. Obama has turned on all his promises...can you tell me why? because he doesnt run thats why.
Did you guys really think the hot economy driven by consumer spending driven by easy borrowing was sustainable?
I didn't.
I pulled the plug 5 years ago and started getting rid of debt.
It's a simile. The reservoir of money is draining faster than it can be filled.
WTF are you talking about. Everyone got a tax break, not just the rich, and the economy was fine until 2007, when the demonrats took over.
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