"In today's economy, for consumers to remain loyal, brands must demonstrate essentialness to home life or an ability to make the home stronger. Brands that help consumers preserve richness in their homes and personal lives will be rewarded; those that do not will have difficulty in these tough times," said Daryl Lee, Global Head of Communications Planning, UM.
Consumers reported strong brand loyalty for core in-home products such as groceries, personal care and grooming products, including toiletries, medications, vitamins and more, further indicating that consumers intend to continue buying brands they trust or like in these categories. Cementing their value as lifestyle essentials for consumers today, Internet service and cell phones were deemed by 45 percent of respondents as items they'd be unwilling to surrender to cost cutting.
Higher ticket items across the board showed less brand resiliency, with consumer entertainment and electronics products appearing vulnerable to consumers cutting back on their spending or trading down to lower-cost brands. Unsurprisingly, luxury items like jewelry, fashion accessories and fragrances were most likely to be cut out entirely by consumers.
The survey also supported the overwhelming trend towards coupons and discount offers amongst consumers curious for the best deal, with 75 percent of consumers saying they will actively seek promotional offers for higher ticket items over the next six months.
Mr. Lee added, "The economy has created a fundamental shift in consumers' mindsets and their expectations for what brands should deliver. Brands will need to be more curious than ever about consumers and their needs, and there will be great rewards for the marketers that listen well, offer good deals and help consumers through these lean times. Our Econocurious Survey arms our clients to do just that."
UM's "Econocurious Consumer Survey" tracks consumer attitudes and behavior in the current economic climate to offer marketers a deeper understanding of how consumers are responding to financial challenges and how this could ultimately impact brand relationships.