Hot Topic: Nielsen’s Recession-Proof Consumer
by Christina Lee on April 14th, 2009
Not just income, but also TV-watching and Internet-browsing habits, should help manufacturers determine how “recession-proof” consumers may be, a recent study shows.
Throughout the past year, consumer confidence has largely been measured and addressed as a whole. But according to marketing and media researcher Nielsen, consumers will not all respond in the same manner to current economic conditions.
The study created consumer groups based on how and by how much they save money:
- Recession Indifferent consumers are barely, if at all changing their spending habits.
- Recession Insensitive consumers will cut spending on luxuries like entertainment and eating out, as they find themselves slight affected by the economy.
- Switch to Private Label consumers generally buy generic brands or store labels. Nielsen characterizes them as “young, bustling families” earning up to $35,000.
- Stock Up and Save consumers, on the other hand, are probably coming from older households earning $50,000 or more. While they remain loyal to their favorite brands, they will also let coupons and sales determine what they replenish.
- Light Coupons and Sales consumers are typically coming from older, smaller households.
- Switch Stores for Best Deal consumers do not mind store-hopping for the better bargain.
- Brand Disloyal/Promo Sensitive consumers are mainly drawn to sales and generic brands. They likely come from households earning between $35,000 and $50,000.
- Panic Stricken consumers have greatly reduced their living expenses – in any way they can – to save money.
Once the study cross-examined these consumer groups some of their media consumption habits, all to lead to some interesting comparisons. When Recession Indifferent and Recession Insensitive consumers are online, they are most likely viewing search engine, community-based, and news and information Web sites.
But while their Internet browsing habits are similar, these two “least recession-impacted” consumer groups are watching very different television shows. Recession Indifferent consumers watch more sports and news programming, while Recession Insensitive will probably tune in to comedy and quiz game shows.
As also measured by Nielsen, the heaviest Internet users are those searching for bargains – the Switch Stores for Best Deals, Stock Up and Save, and Recession Indifferent consumers.
For more information, view Nielsen’s report, “Reaching the Recession-Proof Consumer.”