CONSUMER’S REACTION FACING ECONOMIC HARDSHIPS

Since the very beginning of the financial crisis’ boom, I’ve read a lot of forecasts about ad spending evolution in 2009 and advertisers reaction to crisis (as for example the forecasts by France pub or the EBG Barometer). All these surveys actually concerns advertisers. But what about consumers?

One year ago TNS had already ascertained an attitude of restriction amongst them. As soon as nowadays this phenomenon is accelerating, I think we need more up to date details.

The survey carried out by OTO Research goes deeper into the issue of consumers’ reaction to crisis and of their attitude towards purchases.

Here there are some of the most interesting findings I found out in the survey:

1) Consumers confirm that the financial crisis has turn into a crisis of consumption
- 84% of French people feel hit by the financial crisis and 79% are already thinking about changing their consumption habits

2) They massively intend to reduce or postpone their expenditure
- 45% will reduce their purchases; 53% will postpone them

3) They aim at a transversal optimization of purchases thanks to a stronger usage of the internet
- 89% will use the internet to compare offers and to find the best one

4) This ongoing process is developing within a context of distrust towards both Institutions and brands
- 83% of consumers don’t trust brands’ behavior

5) Furthermore, we’ve also seen that the interest for low-cost offers affects the expectation of quality for more than half the consumers
- 55% of consumers are likely to compromise to terms concerning quality in order to spend less

6) Within many categories, people agree upon the perception of products’ prices as too high
- Food ( 69%); Energy (61%); TLC (58%); Automotive (57%); Financial Services ( 57%); Travel (51%)

7) Categories, related to leisure and entertainment, are the most exposed to cut-backs. Primary needs (in a broad sense) are less touched.