Government cuts prompt Scots to tighten belts, research confirms
The majority of UK has cut their consumer spend as a result of public sector cuts in recent months, new research has found.
Research conducted by marketing services firm RAPP Edinburgh, alongside trends and forecasting experts, The Trajectory Partnership, has found, having quized over 2,000 consumers, that 71% will reduce their overall spend, with 74% in Scotland saying the same.
63% of consumers also said that Government cuts had damaged consumer confidence (68% in Scotland) and that 61% had already reduced their spend as a result (found to be slightly higher in Scotland at 64%).
To determine impact on spending behaviour across various areas, respondents were also asked to agree or disagree with a series of statements. The Scottish results show:
*I/We don’t go on an annual holiday
I started doing this recently – 14%
I seriously intend to start doing this – 3%
*I/We don’t go on holidays abroad
I started doing this recently – 16%
I seriously intend to start doing this – 5%
*I shop around for groceries to get the best deals
I started doing this recently – 28%
I seriously intend to start doing this – 7%
*I use cheaper supermarkets where I can
I started doing this recently – 28%
I seriously intend to start doing this – 8%
*I search online for vouchers and discount codes
I started doing this recently – 39%
I seriously intend to start doing this – 9%
*I actively look out for, collect and redeem loyalty points
I started doing this recently – 23%
I seriously intend to start doing this – 5%
The research also shows that, in common with the rest of the UK, Scots are increasingly staying at home, to eat, drink and be entertained.
*Instead of going out to dinner, I cook at home
I started doing this recently – 18%
I seriously intend to start doing this – 5%
*I drink at home rather than go to the pub
I started doing this recently – 22%
I seriously intend to start doing this – 3%
*I invest in home entertainments where I can eg Sky, sound systems, digital radio
I started doing this recently – 14%
I seriously intend to start doing this – 3%
Commenting on the research, Claire Wood, head of planning at RAPP Edinburgh, commented: “Scots are broadly following the same path as their counterparts in the rest of the UK. They started to tighten their belts in the recession and the spending cuts are accelerating changes in behaviour . It’s now the norm to be a savvy shopper and consumers are also increasingly becoming more insular. Forget David Cameron’s ‘Big Society’ – dig more deeply into the research and it clearly shows it’s all about ‘The Big Self’.”
She added: “For companies seeking to sell their goods or services, Austerity Britian represents a major challenge – but also opportunities for those who can react and adapt to shifting consumer behaviour. Fundamentally we believe there is still very much opportunity in austerity.”