In our last Research Tidbit, we talked about the recession’s impact on consumers.  Wharton recently held a Marketing Conference, “Connecting with the Evolving Consumer,” which included some great insights on the topic.  Among them:

• Consumers’ tendency to do a mental calculation of value, that is, quality divided by price, has trickled down from major purchases like cars and refrigerators to minor ones, like cans of soup.  Companies like Campbell Soup have looked for ways to reassure customers they’re indeed getting quality, such as highlighting nutritional information.

• Consumers are willing to spend more for an assurance of quality.  In uncertain times, they don’t want to run the risk of buying an inferior product that won’t get used.  Calphalon has capitalized on this trend by emphasizing its technological improvements.

There is no doubt that consumers are making trade-offs in some areas and trading down in some others.  It’s still hard to say to what extent these changes will last as the economy emerges from the recession… but we’ll keep you posted!  In the meantime, to figure out where your customers stand, give us a call at (818) 752-7210.

Source: “Marketing In A Weak Economy,” Knowledge@Wharton, February 5, 2010