Consumer Behavior is Changing

In a Retail Forward's ShopperScape survey, it asked 4,000 respondents what they are doing now to save money, and which of these tactics they think they are most likely to retain.

Leading changes:

Buying fewer items on impulse (48%), is the No. 1 money-saver
Buying food items that seem "just too expensive" (47%)
Eating out at restaurants less often, as well as switching to more affordable restaurants (40%.)

Which habits will stick:

Not buying pricey food items (36%),
Buying less on impulse (36%)
Using coupons more frequently (31%)

Source: Downturn Affects Gen Y, Seniors Least Mediapost.com, 4/14/2009

Consumers Redefine the word "Essential"

Messages must reinforce relevance and affordability
While edibles, healthcare and personal care cannot be eliminated, they can be, and have been, reduced
Away-from-home dining declined but they are not willing to sacrifice nutrition or convenience - they still seek occasional indulgence
Shoppers want trusted brands that provide value and comfort
Consumers seek comfort and stability in small ways - Home dining occasions are proving to be an area of opportunity
From health care to beauty care, consumers are saving money with "do-it-yourself"strategies

Source: NCH and IRI 2009 Trend reports

How Consumers View Advertising

48% believe that a lack of advertising by a retail store, bank or auto dealership = the business must be struggling.
A vast majority perceives businesses that advertise are committed to doing business.
40% of consumers use coupons more now than a year ago
A 'deeply discounted price' was the #1 factor to make consumers more likely to purchase big ticket item (+$1,000)

"It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand... advertising... assures consumers of a business' reliability... "

C. Lee Smith, president and CEO of Ad-ology Research

What Media Do Consumers Use?
TV, newspaper, direct mail and internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action.

Ad-ology Research, May 2009

Please note: if more information / insights are needed, please contact a Valassis sales representative