Moving Forward

This month marks the one year anniversary of events that are now recognized as the start of the global recession. More than previous downturns, this recession has led to profound shifts in how consumers think, react to marketing and buy.

The phrase “responsible consumerism” is rapidly replacing “mass consumption” as people move beyond aspirational buying to seek products that represent value and responsibility. Many businesses have been forced to change their marketing efforts, due to messaging that no longer resonates, or reduced budgets. As this new marketplace develops, research indicates that consumers are more aware and critical of how companies are advertising their goods and services.

In a recent Ad-ology Research study on how consumers currently perceive and use advertising, more than 48% of adults in this country now interpret a reduction or lack of advertising to mean a business is in trouble and not reliable. The survey participants saw businesses that maintained, or increased their advertising during the downturn as more competitive, reliable and committed to staying in business.

According to this survey, consumers have reacted to the downturn with changes in their purchasing behaviors:

• 40% of consumers use more coupons now.
• The top motivator for a big-ticket ($1,000+) item purchase is a deeply discounted price offer.
• Consumers were most motivated to take action by ads they saw on TV and the Internet, or in newspapers and direct mail.
• Search engines and store websites are the top 2 ways that consumers research and shop for products.