••• grocery/supermarket research
New habits die hard
Private-label still gaining ground over brand-name CPG
The recession-born threat of private-label brands to brand-name products shows no sign of relenting, as 64 percent of shoppers admitted that their grocery carts were at least half-full of store-brand products and 39 percent said they have increased their purchase of store-brands in recent years as a result of the tough economic times, according to a study from New York consulting firm Accenture. Further, 77 percent of shoppers said they would not decrease the amount of store-brand products they buy even if their disposable income were to return to the same level as it was before the economic downturn.
Price remains the key factor in the majority of store-brand purchases. Two-thirds of shoppers said they buy store-brands because they are cheaper. Also, while 87 percent of shoppers said they would buy more brand-name products if they were offered at the same price as the comparable store-brand, more than half (51 percent) said that it would take a permanent price reduction of the brand-name product – to the same price as the store-brand – to persuade them to return to purchasing the brand-name product.
The growing perception of trust, quality and preference for private-label products should be of most concern to consumer goods companies that are competing with stores for the same shelf space. Half of consumers surveyed buy store-brand products because they perceive the quality to be just as good as the brand-name equivalent; 42 percent buy a private-label product because they trust that particular store’s brand; and 28 percent simply prefer the store-brand product to the brand-name product. In fact, only 9 percent claimed not to buy store-brands because they felt that the quality or taste was inferior to the brand-name product.
Consumers believe that stores have improved the variety and appeal of their range of store brands. Forty-eight percent of shoppers believe that stores now offer a greater number and variety of store-brand products and more than one-third see store-brand products as simply another brand on the shelf.
www.accenture.com
••• asian-americans
America’s highest achievers
Asian-Americans set the bar for education, income and growth
A century ago, most Asian-Americans were low-skilled, low-wage laborers crowded into ethnic enclaves and targets of official discrimination. Today, Asian-Americans are the highest-income, best-educated and fastest-growing racial group in the U.S., according to data from the Pew Research Center, Washington, D.C. Asian-Americans are also more satisfied than the general public with their lives overall (82 percent vs. 75 percent), their personal finances (51 percent vs. 35 percent) and the general direction of the country (43 percent vs. 21 percent) and they place more value than other Americans do on marriage, parenthood, hard work and career success.
Asians recently passed Hispanics as the largest group of new immigrants to the U.S. and the educational credentials of these recent arrivals are striking. Sixty-one percent of adults ages 25-to-64 who have come from Asia in recent years have at least a bachelor’s degree. This is double the share among recent non-Asian arrivals and makes the recent Asian arrivals the most highly-educated cohort of immigrants in U.S. history.
They also stand out for their strong emphasis on family. More than half (54 percent) say that having a successful marriage is one of the most important things in life; just 34 percent of all American adults agree. Two-thirds of Asian-American adults (67 percent) say that being a good parent is one of the most important things in life; just 50 percent of all adults agree. Their living arrangements align with these values. They are more likely than all American adults to be married (59 percent vs. 51 percent); their newborns are less likely than all U.S. newborns to have an unmarried mother (16 percent vs. 41 percent); and their children are more likely than all U.S. children to be raised in a household with two married parents (80 percent vs. 63 percent).
Asian-Americans have a pervasive belief in the rewards of hard work. Sixty-nine percent say people can get ahead if they are willing to work hard, a view shared by a somewhat smaller share of the American public as a whole (58 percent). And fully 93 percent of Asian-Americans describe members of their country of origin group as very hardworking; just 57 percent say the same about Americans as a whole.
For the most part, today’s Asian-Americans do not feel the sting of racial discrimination or the burden of culturally imposed “otherness” that was so much a part of the experience of their predecessors. Compared with the nation’s two largest minority groups – Hispanics and blacks – Asian-Americans appear to be less inclined to view discrimination against their group as a major problem. Just 13 percent of Asian-Americans say it is, while about half (48 percent) say it is a minor problem, and a third (35 percent) say it is not a problem.
About six-in-10 say that being Asian-American makes no difference when it comes to getting a job or gaining admission to college. Of those who do say it makes a difference, a slightly higher share say that members of their group are helped rather than hurt by their race. Those with less education are more prone than those with more education to say that being an Asian-American is an advantage.
Asian-American newlyweds are more likely than any other major racial or ethnic group to be intermarried. From 2008 to 2010, 29 percent of all Asian newlyweds married someone of a different race, compared with 26 percent of Hispanics, 17 percent of blacks and 9 percent of whites. Asian women are twice as likely as Asian men to marry out. Among blacks, the gender pattern runs the other way – men are more than twice as likely as women to marry out. Among whites and Hispanics, there are no differences by gender.
Despite high levels of residential integration and out-marriage, many Asian-Americans continue to feel a degree of cultural separation from other Americans. Not surprisingly, these feelings are highly correlated with nativity and duration of time in the U.S. Among U.S.-born Asian-Americans, about two-thirds (65 percent) say they feel like a typical American. Among immigrants, just 30 percent say the same and this figure falls to 22 percent among immigrants who have arrived since 2000.
Forty-three percent of Asian-Americans say Asian-Americans are more successful than other racial and ethnic minorities in the U.S, while 45 percent say they are about as successful and 5 percent say they are less successful.
www.pewresearch.org
••• mobile research
Smartphone shortcuts
Mobile users circumvent online advertising with smartphones
While a majority of mobile users say they use their devices exclusively when it comes to Internet searches and accessing personal e-mail, it appears preferences for specific Web sites follow suit. Over half of consumers with smartphones or tablets would rather use these devices to access Google, their e-mail inbox and Facebook instead of using a desktop or laptop, which could present a challenge for advertisers and retailers, according to a survey conducted by Prosper Mobile Insights, a division of BIGinsight, a Worthington, Ohio, research company.
Although these consumers do not solely use a mobile device for certain sites, when given the choice, many will reach for a smartphone or tablet, thus avoiding traditional online advertising.
“For advertisers, it is important to note that some of the biggest sites may be seeing less traffic on computer screens and more on smartphones or tablets,” says Pam Goodfellow, director, consumer insights, BIGinsight. “These shoppers are bypassing traditional banner ads, suggested and sponsored sites and many targeted social ads.”
For Google, 45.4 percent prefer to use a smartphone, compared to 9.5 percent who prefer a tablet and 45.1 percent who prefer a desktop or laptop. For personal e-mail, 47.6 percent prefer a smartphone; 10.1 tablet and 42.3 percent desktop/laptop. Fifty percent prefer a smartphone to access Facebook, 12.5 percent tablet and 37.4 percent desktop/laptop. Retailer Web sites are where traditional computers are still holding their ground, as 67.4 percent prefer to access them using a desktop/laptop, compared to 20.5 percent who prefer a smartphone and 12 percent a tablet.
More than one-third of those who access an e-mail account for work prefer to do so using a smartphone while 9 percent would grab a tablet. Over 30 percent of LinkedIn users say they prefer a smartphone for access to the site, along with 12.4 percent who would choose to use a tablet. The remaining 57 percent prefer a desktop or laptop computer.
www.prospermobile.com
••• automotive research
Downsize, not downgrade
Overall appeal improves as consumers continue switching to smaller vehicles
As owners continue to shift toward smaller vehicles, they are finding that the ones they buy are often just as appealing as the larger vehicles they previously owned. According to the 2012 U.S. Automotive Performance, Execution and Layout (APEAL) Study from Westlake Village, Calif., research company J.D. Power and Associates, 27 percent of new-vehicle buyers who replaced a vehicle downsized, meaning they purchased a new vehicle in a smaller segment than the vehicle they replaced. In contrast, only 13 percent of buyers upsized, while 60 percent purchased a new vehicle in the same size segment as their previous vehicle.
“New-vehicle buyers who downsize are not making the sacrifice that they once were,” says David Sargent, vice president, global automotive, at J.D. Power and Associates. “Automakers are heavily focused on providing the U.S. market with appealing smaller models and buyers may be surprised at just how good some of them are.”
The vehicles currently being traded in for new ones are approximately six years old, on average. During that period of time, vehicle appeal overall has significantly increased and today’s smaller vehicles are, in many cases, more appealing than the larger vehicles being replaced. In 2012, the average APEAL Study score for vehicles in the compact/subcompact segment is 765 points (on a 1,000-point scale), which is the same as the average for midsize vehicles in the study in 2008. Similarly, in 2012, the average APEAL Study score for vehicles in the midsize premium segment is 844, the same as the average for large premium vehicles in 2008.
The downsizing trend also has an impact on owner satisfaction with the fuel economy of their new vehicle. While overall vehicle appeal continues to improve, increasing seven points year over year, the greatest improvement is in fuel economy. Furthermore, 47 percent of owners say gas mileage was one of the most important factors in choosing their new vehicle, up from 40 percent in 2011.
Chevrolet received the highest number of segment awards of all brands included in the study for the Avalanche, Sonic and Volt models. Seven brands each received two model awards: Audi for the A6 and A8; Dodge for the Challenger and Charger; Ford for the Expedition and Flex; Kia for the Optima (in a tie) and Soul; MINI for the Countryman and Coupe/Roadster; Nissan for the Frontier and Quest; and Porsche for the Cayenne and 911. The Audi A8 achieved the highest APEAL Study score of any model in the industry in 2012.
Also receiving awards were the BMW 3 Series; Infiniti QX56; Range Rover Evoque; Mercedes-Benz SLK-Class; and Volkswagen Passat in a tie.
Porsche was the highest-ranking nameplate for the eighth consecutive year. Dodge, Jaguar and Ram achieved the greatest year-over-year improvements, increasing scores by 21, 20 and 19 points, respectively.
www.jdpower.com
••• teens
A trifecta of influences
Word of mouth, advertising and reviews persuade teen spending almost equally
In this Information Age, tech-flooded teens have access to many forms of communication that work together to influence their spending decisions. A study from Port Washington, N.Y., research company The NPD Group shows that 21st-century technology, straightforward advertising and age-old personal recommendations work together as the three factors most influential in helping teens decide what items to buy. Word-of-mouth marketing wins out as the most persuasive at 36 percent, compared to 32 percent for advertising and 29 percent for online advertising. 
“In true adolescent fashion, teens continue to be influenced by their friends when it comes to trends,” says Marshal Cohen, chief industry analyst, The NPD Group, Inc. “Teenagers care 20 percent more than the average shopper about brands, most likely due to peer pressure.”
Even though shopping for brand names is more important to teenagers than it is to the average shopper (42 percent for teens vs. 38 percent for general population), teens still search for bargains while relying on adult income and approval of purchase.
Brand-savvy teens find more labels they desire for less at off-price retailers (32 percent) and outlets (30 percent) than at department stores and specialty retailers (28 percent each).
www.npd.com