What’s really going on in the minds of consumers and what does it mean for retailers? A study by Deutsch, a marketing communications company, provides some answers. For one thing, consumers are spending less and they are spending smarter, according to the study. They are paying closer attention, checking receipts, clipping coupons and questioning every purchase.
More findings from the study conducted by Deutsch Los Angeles:
- The new conscious, conservative behavior on the part of consumers results from three converging trends: economy, environment and health. These new “grooves” of behavior will become habitual, staying with consumers even after the economy turns around.
- Consumers feel a sense of relief that the consumerism binge is over and that a positive outcome from this crisis will be more personal responsibility.
- The first expense being cut is eating out, followed by vacations, clothing and big-ticket purchases.
- Consumers are planning out strategies before they buy. Coupons have become standard. Further, consumers are paying attention to the timing of coupons and rebates, they are trading coupons with friends, and, in general, they are learning how to “game” the system to gain any advantage they can.
Retailers should adjust accordingly.