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Principles Agency

Research highlights the five new post-recession consumer types

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By The Drum Team, Editorial

May 13, 2010 | 5 min read

Market research conducted by Leeds-based Principles Strategy has identified five new post-recession consumer types, which brands need to recognise before launching any marketing campaigns.

A recent online omnibus survey was conducted with 1,006 consumers and reveals that the ramifications of the recession continue to be felt, with consumers responding at differing levels. The evidence states that 59% of consumers say that the recession is not over and 64% say that the impact will be felt for a while.

The survey has identified five different types of consumers coming out of the recession.

Male consumers appear more optimistic and claim to be the least affected by the recession, whilst females are more cautious and more inclined to shift their shopping habits.

The new research reveals that there hasn’t just been one recession response from consumers and identifies different consumer groups emerging from the recession. It examines the extent that consumer households have been impacted and how their shopping habits have changed. Economic recovery seems to be offset by personal concerns about continued job losses or pay cuts and freezes, particularly affecting major purchases.

The research identifies the following consumer categories emerging from the recession:

Consumer Categories

· The Impervious (21%) – those who have felt no direct impact of the recession, with shopping habits unaffected. They tend to be older consumers or those who can afford to ride out the recession.

· The Unaltered (22%) – those who have felt an impact of the recession on their household but it has not resulted in any changes to their shopping patterns.

· The Prudents (28%) – those shoppers who have not felt a big impact of the recession. They are more cautious, so have made some small changes to their shopping habits. They are selective about cutting back on certain non-essentials and are looking out for more promotions and sales.

· The Knee-jerk Reactors (13%) – those affected by the recession and have made considerable changes to their shopping habits. They have more considered spending

and often switch to cheaper or private label products. They use shopping lists more to avoid temptation or distraction.

· The Beleaguered (16%) – those who have been seriously affected by the recession and have had to make significant changes to their shopping habits. They are more likely to be younger and on lower incomes. This group will spend increasing amounts of time to save money and look for the best deals and promotions, cutting out luxuries and switching to cheaper products.

Bernie May, managing partner for Principles Communications Group said: “Whilst economic data shows the recession is coming to an end, our research suggests that the impact will continue to be felt by consumers for some time to come. It reveals that the majority of consumers think that the gloomy times are not over.

The research also revealed that most consumers have felt the impact of the recession and have had to respond to some extent. Six coping strategies are being used by consumers as they emerge out of the recession and adapt to economic pressures.

Consumer Coping Strategies

· Violent Reining In: this is deployed by those most hard-hit. They are taking drastic action to shave chunks off their weekly expenditure.

· Reappraising High Frills: some brands and products are being assessed with a new degree of scepticism and there is evidence of trading down to own-label products, especially on commodities.

· Delay Replacements: delaying purchasing, especially on big ticket items and rejecting the old ways of fickle, disposable consumption.

· Keep Shopping, But Shop Clever: many consumers still have the desire and aspiration to consume, but are being much more considered and astute about ensuring they get good value.

· Play at Home: spending less on going out and a trend back into the home, making savings on leisure and entertainment in particular.

· Justified Splurges: it is not all about frugality. There are those who are happy to spend money as long as they are given a very good reason to.

Abby Pick, head of strategy and planning at Principles Strategy concludes: “Brands are currently responding with either a commitment to long-term brand consolidation or cutting back for short-term brand survival, depending on their view of marketing as either a cost or an investment."

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