Commonality found among shopping styles across the world
Global consumer packaged goods (CPG) shoppers should not be defined by their country but instead by their shopping attitudes and behavior - especially their attitudes toward price and their propensity to pre-plan their CPG purchases, according to a study conducted Ipsos Marketing, a division of New York research company Ipsos North America.
Ipsos has identified five different types of CPG shoppers that can be found around the world in varying degrees. The five shopper segments are:
Brand Lovers (19 percent): The distinguishing trait of these shoppers is spending money on brands that may be more expensive than alternatives. These shoppers are the ones who are more influenced by store staff and place a greater value on convenience.
Price Driven (23 percent): With fixed budgets for grocery shopping, shoppers in this group are more likely to make a shopping list, compare prices and go out of their way to find the stores with the lowest prices.
Indulgents (16 percent): The most impulsive group, this group is attracted to new products and is more likely to choose the good-tasting over the healthy option. They are happy to spend more to save time and don’t mind paying more for branded products.
Responsible Planners (17 percent): Shoppers in this group are also on a fixed budget (like the Price Driven shoppers) and always compare prices. They are the shoppers most likely to buy online and have changed their habits to shop in a more sustainable way.
Bargain Hunters (25 percent): Shoppers in this group also hunt for bargains but are less price-constrained and more impulsive. They can afford to buy in bulk and are less interested in shopping online.
The segments were developed based on a consumer survey conducted by Ipsos in 23 countries. The segmentation analysis revealed two important implications for CPG marketers. First, global CPG shoppers can be segmented based on their attitudes toward bargain-hunting, promotions and price comparisons and the degree to which they stick to their pre-planned purchases vs. buying on impulse. Second, country of residence is not a strong factor in trying to classify global shoppers into different segments. In fact, data suggests that consumers in different countries may exhibit similar shopping behavior even though they are geographically dispersed and at different stages of economic development.
“It’s natural for marketers to try to customize their merchandising strategies to countries or geographies - there is an intuitive logic to doing that,” says Donna Wydra, senior vice president, Ipsos Marketing, U.S. shopper and retail. “However, our findings demonstrate that retail strategies should align with shopping styles, which are not necessarily dictated by geography. For example, Brand Lovers dominate across China, India, Russia and Turkey - therefore, marketers can take advantage of the opportunities that this provides as brands become more affordable in these growing economies. On the other hand, there is a need to continue to promote and meet the needs of the Bargain Hunters found in the U.S., Canada, Great Britain and Australia for whom smart shopping has become a way of life. The bottom line is that shopping strategies should align to shoppers, not countries.” For more information visit www.ipsos-na.com.
Has the Great Recession sapped Americans’ can-do spirit?
After two years obsessing over a bad economy and pinching pennies, there has been talk among the pundits that the worst of the Great Recession is nearly over, although Americans aren’t convinced that stability is here to stay. In fact, the normally-optimistic and hope-filled American public has a dismal outlook on the future and little faith in the fundamentals of the country’s economy. Almost two-thirds of Americans say a double-dip recession (defined as a recession followed by a short-lived recovery, followed by another recession) is likely to happen, according to a survey conducted by New York research company StrategyOne. Among those who expect a double-dip recession, 44 percent fear it will be worse than the first one, with 21 percent worried it will be much more severe. Twenty-four percent think the second recession will be less severe.
As they brace for a second downturn, Americans are certainly not holding their breath for a full recovery anytime soon. Just 5 percent think there will be a full economic recovery by the end of this year, and only another 21 percent see recovery taking place by the end of 2011. Half see a recovery not coming until sometime after the end of 2011, and about a quarter doubt our economy will ever fully recover.
But beyond feelings about where the economy is today and where it is heading next, fundamental doubts and concerns are being raised about the U.S. The country is split on whether America’s best days lie ahead or behind. A slim majority, 52 percent, say they are ahead, while 48 percent say they have passed. There is, however, consensus around another point - 71 percent agree that America is fundamentally broken and not working.
The clearest implication is that, going forward, consumers are expected to be a lot more frugal. Forty-one percent are planning to cut back on their spending over the next three-to-four months, compared with 8 percent who plan to increase it. Thirty-five percent say they plan to cut back their online spending over the next three-to-four months, compared with 12 percent who plan to increase it. Nearly 80 percent say they are planning to spend less money for Christmas this year, and 87 percent say they do not plan to make a big-ticket purchase (such as a house or car) in the next three-to-four months. Forty-nine percent have already delayed making a big-ticket purchase during the past few months. Over a quarter of Americans don’t expect their personal finances to fully recover from the downturn until after 2011, and just as many (26 percent) think their personal finances won’t ever fully recover. For more information visit www.strategyone.com.
Women, teens and minorities the most talk- and text-happy
Think you can guess which Americans talk or text the most on their cell phones? This is not the white man’s domain. According to New York researcher The Nielsen Company, African-Americans use the most voice minutes - on average more than 1,300 a month. Hispanics are the next most-talkative group, chatting an average of 826 minutes a month. Even Asians/Pacific Islanders, with 692 average monthly minutes, talk more than whites, who use roughly 647 voice minutes a month.
African-Americans and Hispanics also text the most. Hispanics send and receive around 767 SMS messages a month while African-Americans send and receive around 780 - significantly more than Asians/Pacific Islanders (384 texts a month) and whites (566 texts a month).
And if you thought women in the U.S. talk more than men on their mobile phones, you thought right. On average, women talk 22 percent more than men (856.3 minutes a month compared to men’s 666.7). Turns out, American women are more communicative in general on mobile devices. They text more, sending or receiving an average of 601 SMS messages a month compared to the 447 monthly text messages sent or received by the average American male.
Not surprisingly, teens text the most, sending or receiving an amazing 2,779 SMS messages a month. In the next two age brackets, text usage falls by more than half each time, with those ages 18-24 sending or receiving 1,299 messages and those ages 25-34 exchanging an average of 592 messages. While text usage varies greatly between those 18-24 and those 25-34, their voice usage is quite close (981 voice minutes for 18-24 and 952 minutes a month for those 25-34 years old.)
Location plays into usage patterns as well. Southerners are the most talkative, but while Florida ranks high in terms of monthly voice minutes used, it ranks very low for text messaging (the state has one of the highest median ages, and older Americans text the least). Mississippi, interestingly enough, ranks high for both talking and texting. For more information visit http://blog.nielsen.com/nielsenwire.
In with the old - social networking use picks up among Boomers
While social media use has grown dramatically across all age groups, older users have been especially enthusiastic over the past year about embracing new networking tools. Social networking use among Internet users ages 50+ nearly doubled from 22 percent in April 2009 to 42 percent in May 2010, according to data from the Pew Internet and American Life Project, a Washington, D.C., nonprofit.
Between April 2009 and May 2010, social networking use among Internet users ages 50-64 grew by 88 percent, from 25 percent to 47 percent. During the same period, use among those ages 65+ grew 100 percent, from 13 percent to 26 percent. By comparison, social networking use among users ages 18-29 grew by 13 percent, from 76 percent to 86 percent.
“Young adults continue to be the heaviest users of social media, but their growth pales in comparison with recent gains made by older users,” says Mary Madden, senior research specialist, Pew Internet and American Life Project. “E-mail is still the primary way that older users maintain contact with friends, families and colleagues, but many older users now rely on social network platforms to help manage their daily communications.”
One in five (20 percent) online adults ages 50-64 say they use social networking sites on a typical day, up from 10 percent one year ago. Among adults ages 65+, 13 percent log on to social networking sites on a typical day, compared with just 4 percent who did so in 2009. At the same time, the use of status update services like Twitter has also grown-particularly among those ages 50-64. One in 10 Internet users ages 50+ now say they use Twitter or another service to share updates about themselves or see updates about others. For more information visit www.pewinternet.org.
Are women unrealistically optimistic about the state of their finances?
About 71 percent of women believe they are independent and on or ahead of target when it comes to achieving financial goals, but their confidence may be unfounded, according to a study from Penn Mutual Life Insurance Co., Horsham, Pa. Approximately 61 percent of women who identified themselves as independent are behind target on building savings, and 13 percent have yet to begin saving at all. Numbers are similar for independent women paying off debt: 53 percent are behind their target, and 14 percent have not begun to pay down their loans.
Women who characterize themselves as independent are more likely than the non-independents to be on track with respect to paying off debt (33 percent vs. 19 percent of non-independent women), building up their savings (26 percent vs. 18 percent, respectively) and guaranteeing they will maintain or enhance their lifestyle during retirement (26 percent vs. 17 percent).
Women who view themselves as independent also look positively at the possibilities of their future and have set goals to meet them. Independent women are significantly more likely than those who do not view themselves as independent to say they are on or ahead of target for being able to save for future travel (29 percent vs. 18 percent) and save for a home remodel (20 percent vs. 10 percent). For more information visit www.worthforwomen.com.
Privacy concerns not enough to put users off of social network advertising
Across the U.S., U.K. and Canada, over 70 percent of respondents who use social networks on a daily basis are concerned about their privacy and believe their experience is being jeopardized by scams or sleazy ads, according to a study from Vancouver, B.C., research company Vision Critical. Less than one-sixth expressed trust in online social networks, forums and blogs, compared to more than one-third for radio, television and online news.
Seventy-two percent of respondents agree that online social networks are very dangerous for children and teens, and another 64 percent expressed concern that online social networks are selling personal information to advertisers.
Despite privacy concerns and a lack of trust, 58 percent of respondents are receptive to brands advertising on social networks, and one-third believe this practice leads them to make better purchasing decisions. Nearly one-quarter of respondents indicate they have purchased a product as a result of seeing something on an online social network. Additionally, one-third of respondents don’t mind online social networks using personal preferences to target ads because it means they’ll be more relevant. For more information visit www.visioncritical.com.