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BizReport : Research : September 01, 2009


Study: Consumers still not keen on spending

Wall Street may be hopping, the stock market may be up but consumers still aren't buying. Literally. According to a new Harris Interactive Poll. According to the report more than three quarters of Americans have changed the way they spend by cutting back. Of those only about 24% have increased their spending in recent weeks as word that the economy is rebounding has begun to spread.

by Kristina Knight

Roughly 4% of consumers who cut back have returned their spending to what it was before the recession began and 21% have increased their spending but continue to spend less than before the recession began.

What does this mean for brands? That value still has to be the focus when it comes to advertising. Consumers may still want things but those wants are not being fed as in the past; so adding value or better expressing the value of a product is the key for marketers moving forward. One way to add value? Point out 'us' factors such as "Made in America". This poll found that more than half of consumers were more likely to purchase a "Made in America", especially amongst the older generations.

Consumers over age 55 are 74% more likely to purchase a "Made in America" product while 68% of those between age 44 and 54 are more likely to purchase and 60% of those aged 35-44 are more likely to complete a "Made in America" purchase.

"One thing to watch is the way Americans start to spend money again. If they are still not spending, the likelihood is they may hear the same news, but have yet to believe it. And, that is what we are seeing here - they are not yet ready to start spending and this means the economic woes may continue until the wallets are re-opened," was ">written in the report.






Tags: ecommerce, Harris Interactive, Harris Poll, online spending, retail, spending, spending forecast








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