Bureau West

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

There is no doubt that consumers are behaving differently from just a couple years ago.  They’re borrowing less and saving more.  They’ve become much more thrifty, spending less time shopping, buying less, and trading down to less-expensive alternatives.  They’re also more suspicious of big businesses.

The question is whether these changes will be permanent.  A recent article in Newsweek cites evidence that when a really difficult year is experienced in early adulthood, fundamental changes occur in people’s core values and behaviors.  Taking into account the ongoing insecurity caused by the current high unemployment (which is particularly high for young adults), it is quite probable that this generation won’t be as free-spending as its predecessors.

On the other hand, as the economy recovers, we expect less profound changes among Americans over the age of 30, since their shopping habits are more ingrained.

The conclusion for marketers: while we expect shoppers to continue to be somewhat more frugal than they used to be, they will open their wallets again soon!  To learn more about your customers’ attitudes, give us a call at (818) 752-7210.

Sources: “The Recession Generation,” Newsweek, January 9, 2010; “17 Ways Consumers Are Changing,” US News and World Report, January 15, 2010

Now that just about everyone has a cell phone and almost everyone sends text messages, it makes sense to use text messages for market research purposes.  We’ve found that when we conduct research using text messages, we are able to get people “in the moment.” This can be particularly useful when conducting research where we want to understand experiences or behavior.

Say we want to know more about retail shopping behavior.  We can text key questions at typical shopping times.  If participants are shopping at that moment, they might respond immediately, or just wait until they’re in the store and answer the question then.  Or we might ask people with diabetes to send a text message whenever they test their blood sugar levels.  Or have people text us when they see a certain type of ad or use a particular product.

People are unusually open and honest when they are texting.  In some cases, it seems that they forget they’re texting responses to our questions, but rather treat the messages as updates to a personal journal!  And unlike research that uses journals, participants don’t have to think back and remember what they were thinking or feeling; they typically send their text message at the moment they’re engaging in the behavior.  Texting can fit into the busiest of days.

Since the method is inexpensive, we frequently combine text message research with other research methods, such as utilizing text messaging before or after focus groups or in online bulletin board focus groups.  To discuss the best method for your research needs, give us a call at (818) 752-7210.

Executives at Morgan Stanley were stunned – stunned! – by a recent report from a 15-year-old intern that stated that teens don’t read newspapers, hate ads and don’t like to pay for music.  Executives scrambled for copies of the report, much to the amusement of regular people, who weren’t the least bit surprised by these “revelations.”

But the excitement underscores the importance marketers place on understanding teens and marketing to them effectively.  Nielsen recently published a research report about marketing to teens with some surprising findings.  Of particular interest:

• Teens aren’t always simultaneously using several different media channels at once.  In fact, they’re more likely than adults to use their media one at a time.
• They’re not abandoning TV for new media – they’re actually watching more TV than ever.
• While teens remember less ads than adults, once they do notice an ad, they’re more likely to find it appealing.  And they’re not skipping commercials as much as previously thought: only about a third of teens have a DVR, and even those teens do most of their television viewing live.
• And one less surprising finding: teens prefer text messaging to calling.  The report states that “the average U.S. mobile teen now sends or receives an average of 2,899 text-messages per month compared to 191 calls.”

The report comes to an interesting conclusion: teens aren’t that different than the rest of us!  And like most of us, they’re impacted by factors such as social networking and mobile internet.

Just remember: if you want them to spend money, it will most likely come from their parents!

Sources: “Twitter is not for teens, Morgan Stanley told by 15-year-old expert,” The Guardian, July 13, 2009; “How Teens Use Media,” Nielsen, June 2009