How did the recession change shopping patterns?
American consumers have been profoundly altered by the recession in a way that will have a lasting effect on how they shop and buy. That’s the conclusion of “Marketing to the Post-Recession Consumers,” a recent study by Decitica, which reveals diverse reactions to the recession resulting in a variety of new “normal” spending patterns.
While age, gender, income and other critical factors continue to shape the way consumers respond to marketing, the lens through which they view marketing offers has changed. And this major, long-term alteration in consumers’ spending habits should be reflected in your marketing plans and programs throughout the year and possibly even beyond.
Decitica has identified four distinct consumer segments: Steadfast Frugalists, Involuntary Penny-Pinchers, Pragmatic Spenders and Apathetic Materialists.
- Steadfast Frugalists make up about one-fifth of American consumers across all income and age groups. The vast majority of Steadfast Frugalists are committed to self-restraint, are the least brand loyal and expect their new shopping behaviors to stay with them for a long time. Many consider themselves tightwads, according to Decitica.
- Involuntary Penny-Pinchers have been forced to embrace thrifty shopping methods, but unlike the Steadfast Frugalists, they’re less likely to restrict themselves to buying store brands or generic labels. They have household incomes of less than $50,000, are largely in their 30s and 40s, and like the Steadfast Frugalists, six in 10 are women. The vast majority say they’re scared by the recession, are stressed, and they’re more worried about the future than other groups.
- Pragmatic Spenders have higher spending power, six in 10 are men, and they are largely individuals in their 60s from the Northeast and West. More than one-third of people with household incomes greater than $75,000 are in this group, and they’re more likely to resurrect their past spending patterns in the future.
- Apathetic Materialists tend to be under the age of 40, with most in their 20s, and fewer than 10 percent in the Decitica study admit to being very focused on value. They’re the least changed in their spending habits and future intentions.
This article was written by Kim Gordon for Entrepreneur.com.
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