••• consumer research
Cash concerns erode confidence
Americans most stressed about finances, followed by employment and economy
Money tops the list of issues facing Americans in 2013, according to data from Prosper Insights and Analytics, Worthington, Ohio. Employment and the economy are also weighing on people’s minds, however not nearly as much as issues relating to their finances – or lack thereof.
When asked the question, “What is the No. 1 issue facing you and your household going into 2013?”, 32.3 percent said money, followed by employment at only 8.2 percent, the economy (7.5 percent), the cost of living (5.9 percent), health/illness (5.5 percent), taxes (4.4 percent), housing (3.8), debt (3.4 percent) and government (3 percent).
At the beginning of a new year, consumers are typically focused on saving money. This year, however, 77 percent of Americans have also found their paychecks shrinking from higher taxes resulting from the fiscal cliff deal, according to estimates from the Tax Policy Center. Further, outstanding consumer credit debt is up 5.9 percent from November 2011 to 2012, which equates to approximately $153 billion. The credit crunch appears to be weighing on the minds of consumers as 36.3 percent are looking to pay down debt and 36.1 percent are decreasing spending over the next three months.
Adding to consumers’ money woes is the less-than-stellar employment environment, with a large portion of Americans continuing to worry about unemployment, underemployment and job security. And it’s no wonder why. Though there has been an improvement in the official unemployment rate over the past year (7.8 percent December 2012 vs. 8.5 percent December 2011), the number of Americans currently looking for work remains well over pre-recession-era levels. The less-cited U-6 rate of unemployment, which includes the unemployed, the marginally-attached and those employed part-time for economic reasons, was 14.4 percent in December 2012.
Given consumers’ concerns over their personal financial situation and the employment environment, it’s not surprising that the economy in general ranks third on the list. Although ushering in the new year generally brings feelings of optimism, confidence in the economy declined two points from December (37.6 percent in December 2012 vs. 35.3 percent January 2013). While the percentage of those confident or very confident in the economy is elevated from January readings throughout the recession, consumer confidence will likely remain shaky in 2013.
http://prospertechnologiesllc.com
••• automotive research
Form over function
New-vehicle shoppers care about style as reliability improves
As perceptions of both reliability and actual vehicle dependability improve, new-vehicle shoppers are considering more models – and their image – before making a purchase decision, according Westlake Village, Calif., research company J.D. Power and Associates’ 2013 Avoider Study. The study examines the reasons consumers do not consider – or avoid – particular models when shopping for a new vehicle.
As vehicle reliability improves across the industry, new-vehicle shoppers now consider an average of 3.3 vehicles in 2013, compared with 3.1 in 2012 and 2.9 in 2010. Additionally, fewer shoppers (21 percent) in 2013 purchased their vehicle without cross-shopping other models, compared with 26 percent in 2012 and 29 percent in 2010.
Only 17 percent of new-vehicle shoppers avoid a model due to its reputation for reliability, compared with 19 percent in 2012 and 21 percent in 2009. Not only has the perception of reliability and dependability improved but also the actual quality of vehicles has improved, as the average number of problems per 100 vehicles after three years of ownership has decreased to 132 in 2012 from 170 in 2009.
“Improved actual and perceived reliability has leveled the playing field, allowing many manufacturers to be considered among new-vehicle shoppers that may not have been considered in the past,” says Jon Osborn, research director at J.D. Power and Associates. “Factors such as gas mileage, styling and comfort play an important role in the decision-making process. The study findings suggest that marketing a brand image is just as important as building reliable vehicles.”
The styling of the model and the image it portrays are among the primary reasons new-vehicle shoppers avoid particular models. One-third of shoppers avoid a model because they do not like its exterior look or design, while 19 percent of shoppers do not consider a model because they don’t like its interior look or design. The image a model portrays plays an important part in avoidance, as 17 percent of new-vehicle shoppers avoid a model because they don’t like the image it portrays.
Gas mileage remains the most influential purchase reason, similar to 2012, with 15 percent of new-vehicle owners in 2013 saying it was the primary reason for purchasing their vehicle. Although young owners (under age 25) cite gas mileage as the most influential purchase reason more often than their older counterparts, owners in all age groups indicate gas mileage is the most influential purchase reason.
New-vehicle shoppers avoid hybrid or electric vehicles because of cost/price (36 percent) and exterior styling (25 percent) more than any other reasons. Even when considering a hybrid or electric vehicle, 36 percent of shoppers cite price/payment as the primary reason for rejecting them as a purchase option.
www.jdpower.com
••• women research
Falling short with females
Vast majority of women dissatisfied with marketers’ efforts
Though women are revered as household CEOs and primary shoppers, said to control more than 80 percent of purchases across a range of categories, marketers are failing to connect with female consumers. According to a survey of 1,300 women conducted by Wilmette, Ill., research company Insights in Marketing, 91 percent of women do not feel as though marketers are marketing effectively to them.
The study, which included U.S. women from a variety of age groups, incomes, ethnicities and geographic locations, also found that women are more likely to say that companies market more effectively to men than to women and women are more likely to say that companies market to other women rather than to themselves. Even moms, a key target for many companies, do not feel that companies effectively market products to them.
Baby Boomer women, who, along with Baby Boomer men, have $1 trillion in spending power, feel disconnected from marketing messages. Millennials were most likely to connect with today’s marketing messages but their spending power is less than older generations.
Ethnicity does not appear to have a noticeable impact on perception of marketing effectiveness. English-speaking Hispanic and African-American women felt similarly disconnected from marketing messages.
www.insightsinmarketing.com
••• health/wellness
Not just the nicotine
Smokers looking to quit have concerns beyond health
There are plenty of smoking-cessation products available to help Americans quit smoking and, according to a report from Chicago research company Mintel, people are expected to use them. Sales of smoking-cessation products are projected to increase 3 percent over 2011-12 and continue to grow through 2017.
However, while most people know the dangers of smoking, the addiction to nicotine isn’t the only reason it’s hard to drop the habit. Sixty percent of Americans who currently smoke or have previously quit say, “It’s hard to motivate myself to quit because I enjoy it.” Another 60 percent say, “Health warnings about smoking scare me.” Nevertheless, nearly half feel strongly that they would be able to quit smoking at any time.
Moreover, among those Americans who have previously quit or are interested in quitting, 41 percent say gaining weight is their biggest challenge to quitting smoking. Of those concerned with weight-gain, 54 percent are women vs. 31 percent men.
Of the anti-smoking products currently available, 41 percent of those interested in quitting say they are interested in trying OTC nicotine sprays and 41 percent a prescription nicotine inhaler. Forty percent would go for OTC nicotine replacement lozenges and 38 percent are interested in nicotine-free cigarettes.
Of non-nicotine-replacement-based methods, 35 percent are interested in trying hypnosis, 34 percent acupuncture and some 37 percent would be interested in individual therapy or a support group specific for smoking. And, in this day and age, of course there’s an app for that. Thirty percent of people are willing to try a quit-smoking app on their smartphone or tablet.
While there is an endless supply of smoking-cessation options already available, it seems consumers have some ideas of their own for different formats to help curb the craving. Of those who have previously quit smoking or are interested in quitting, almost half would be interested in a nutrition bar or a drink that could help them quit smoking and 46 percent would like a lollipop with low amounts of nicotine.
When trying different products, it’s very important to 61 percent of Americans who have previously tried to quit or are interested in quitting that they aren’t left with a craving and 59 percent say they don’t want it to be expensive. Meanwhile, 56 percent say they want a product that’s easy to understand and 54 percent think it’s very important it doesn’t leave a bad taste in their mouth. When it comes to support systems, 25 percent say it’s very important to have an in-person support system or coach.
www.mintel.com
••• electronics research
Revered reviews
Consumer reviews are the No. 1 purchase influencer
Almost two-thirds of potential consumer electronics purchasers are inspired by a consumer review to select a brand that had not been part of their original consideration, according to a study from New York public relations company Weber Shandwick and KRC Research, Washington, D.C. In fact, the average buyer consults 11 consumer reviews on the path to purchase.
While consumer electronics buyers pay more attention to other consumers’ reviews than to editorial reviews by a margin of more than three to one, 80 percent are concerned about the authenticity of consumer reviews, leading them to conduct considerable analysis before making their decision.
Consumers’ journey for knowledge about consumer electronics includes several stops along the decision path. Buyers invest deliberate effort into making a well-informed decision – conducting multiple activities to gather opinions, reading an average of 11 consumer reviews, evaluating review authenticity and even demonstrating tolerance for negative reviews.
While consumers consider themselves knowledgeable about consumer electronics, they rely heavily on reviews during the decision-making process. Nearly nine in 10 consumers say they are somewhat or very knowledgeable about consumer electronics yet still consult reviews – consumer and/or professional (60 percent and 52 percent, respectively) – when looking to make a purchase.
Generally, consumer reviews trump professional reviews. Consumers report that they pay more attention to consumer reviews (77 percent) than professional critic reviews (23 percent). The gap between consumer and professional reviews closes noticeably, but not entirely, for more advanced technologies like tablets and computers.
The most influential reviews include certain elements. In consumer reviews, the most helpful ones are those that seem fair and reasonable (32 percent); are well-written (27 percent); and contain statistics, specifications and technical data (25 percent). Surprisingly, named (vs. anonymous) reviews are not as important as these other elements in consumers’ minds.
Consumers trust the reviews that they find on popular Web sites, even if that Web site itself is in the business of selling consumer electronics products. Shoppers trust consumer reviews on Amazon.com (84 percent) and BestBuy.com (75 percent) the most, topping Consumer Reports (72 percent). Consumers show no apparent discomfort in getting their research from a seller of the products they’re considering.
www.krcresearch.com