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Consumer Mindset is Creating New Business Opportunities
& Challenges
What happens during a recession, and how do consumers react? Even expert
opinions vary greatly. Yet, understanding consumer behavior trends in
recession is paramount if you want to market to your customers effectively.
Recession market research suggests that consumer mindsets in America
and across the world is undergoing a fundamental and fast-emerging change
- and that altered purchasing behavior is permanent!
Recession Shoppers Turn To The Internet
- In slow economy people are increasingly turning to the Internet, due
to it's cost effectiveness and flexibility in reach (eMarketer,
2009).
- Internet usage rises, both in terms of the time spent online and the
number of visited sites (Nielsen,
2009).
- 75% of consumers view the Internet as the most essential technology
platform. In tight times consumers have turned more than ever to the
Web - and they're not turning back (Initiative,
2009).
Online Research Is Now Mainstream
- 86% of Internet users browse, research or compare
products online - but do not necessarily buy online (eMarketer,
2009).
- Online research for information is up 49% versus a year ago, and reading
consumer content online is growing at 48% year-on-year (Initiative,
2009).
- 92% of consumers now have more confidence in online information than
sales people in shop (PSB
Research, 2009).
Consumers Increasingly Adopt Online Purchasing
- While most US economic indicators were down, online sales rose 11%
in the first three months of 2009 (Forrester,
2009).
- Over 80% of online shoppers are also online buyers, due to convenience,
price and broad product selection (eMarketer, 2009).
- Buying products online is up 48% over the past year (Initiative, 2009).
- Store sales influenced by online research (cross-channel sales) are
3 times higher than online sales (Forrester, eMarketer, 2009).
Recession Brand Loyalty Is At Risk
- 75% of consumers have altered their purchasing
behavior over the past year (Initiative, 2009).
- 80% of global consumers are likely to switch brands to lower-priced
or on sale during downturn (Ipsos
Marketing, 2009).
- Just 40% of US typical brands held on to at least half of their highly
loyal customers (CMO
Council, 2009).
Permanent Change Of Consumer Mindset
Consumers have turned to the online research more than ever - and they're
not turning back. Brand loyalty is declining, and brand switching is a
consistent issue, even for major brands. While recession history shows
the similar trend - current recession is having a far greater impact on
consumer spending habits than previous downturns.
Recent consumer market research suggests that the change of consumer
mindsets in America and across the world is profound. While the economy
will turn around some day - shopper behavior has undergone irreversible
shift.
Timely insight into consumer market landscape is a vital part of your
business success! Understanding purchasing behavior of your targeted
customers, and knowing how to reach and market to them effectively is
the key to your ongoing market success. [Turn
Recession Into Opportunity]
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