CHICAGO--(EON: Enhanced Online News)--According to Information Resources Inc. (IRI)’s Q3 2013 MarketPulse™ survey results released today, 85 percent of American consumers were aware of the looming debt ceiling crisis and of the government shutdown, which is clearly impacting their views of their personal finances, including their approach to grocery shopping. The survey was fielded to consumers between Sept. 27-Oct. 3 and covers the days leading up to the government shutdown and after the shutdown began.
“The government shutdown and debt ceiling crisis are just more hurdles, and the growing uncertainty really has consumers worried and hunkering down.”
The impact on finances and day-to-day living are expected to be significant, with some consumer segments bracing for particularly challenging conditions. Lowest-earning households (those earning less than $35,000 annually) will be hit the hardest, with families and millennials faring only slightly better. Consumers called out the following specific concerns about how they expect the fiscal crisis to impact their personal finances and shopping behaviors:
- 46 percent of all consumers anticipate increased financial strain, versus 63 percent of lowest-earning households, 56 percent of households with kids, and 54 percent of millennials
- 45 percent of all consumers plan to increase focus on grocery prices, versus 62 percent of lowest-earning households, 54 percent of households with kids, and 48 percent of millennials
- 35 percent of all consumers expect to have less money, versus 55 percent of lowest-earning households, 44 percent of households with kids, and 42 percent of millennials
- 33 percent of all consumers expect increased difficulty in meeting monthly expenses, versus 55 percent of lowest-earning households, 45 percent of households with kids, and 41 percent of millennials
- 31 percent of all consumers will eliminate/reduce trips to some favorite stores, versus 45 percent of lowest-earning households, 39 percent of households with kids, and 35 percent of millennials
“Consumers have been locked in a prolonged game of economic dodgeball, with one challenge after another coming right at them,” says Susan Viamari, editor, IRI Times & Trends. “The government shutdown and debt ceiling crisis are just more hurdles, and the growing uncertainty really has consumers worried and hunkering down.”
Consumers across the board have not notched up their already conservative behaviors in Q3 2013, but this could quickly change if the fiscal crisis continues to drag on. In the meantime, the following range of shopping behaviors remains pervasive among households with kids in particular. Since this is one of the largest CPG purchasing segments, marketers need to keep a watchful eye on this group’s attitudes and behaviors.
- 64 percent are cutting back spending on non-essential items
- 54 percent are trying new brands priced below regular brands
- 52 percent are looking for products that treat multiple symptoms when buying over-the-counter medications to eliminate need to purchase multiple medications
- 45 percent are shopping multiple stores to find the lowest prices
- 40 percent are using online resources to find coupons
IRI Shopper Sentiment Index Shows Surprising Uptick in Confidence
IRI’s Shopper Sentiment Index provides deep insight into how the economy is impacting consumers and changing how they approach grocery shopping. The index provides perspective in terms of price sensitivity, brand loyalty and changes in spending required to maintain desired lifestyles. With a benchmark score of 100 based on Q1 2011 information, a Shopper Sentiment Index score of more than 100 reflects consumers that are less price driven, more loyal to favorite brands and better equipped to maintain their desired lifestyle without changes.
The latest index for Q3 2013 is 109, which is an increase from 106 in Q2 2013. Overall, millennials and those aged 55-plus are leading the way with their sunny outlooks. Millennials indexed at 100 in Q3 2013 versus 94 in Q2, and those aged 55-plus indexed at 117 in Q3 2013 versus 112 in Q2. Unfortunately, those aged 35-54 took on a slightly dimmer view in Q3 2013 and indexed at 105 versus 109 in Q2.
“These overall positive results of the Shopper Sentiment Index are certainly an interesting juxtaposition to consumers’ concerns about the financial crisis,” adds Viamari. “Economists are definitely trying to figure out if the current anxiety will turn into a big economic downturn or if these fears will be just a blip in consumer sentiment that will go away when the government reopens.”
“There are so many balls in the fiscal air that consumer sentiment could easily be tracked not only daily but hourly. And, if the debt ceiling is extended for six weeks, we could be in for yet another crisis during the crucial holiday shopping season. The bottom line is that consumers have weathered many crises during the past months and years, so it will be very telling to see the results of IRI’s Q4 2013 MarketPulse survey and Shopper Sentiment Index to truly uncover how consumers handled the latest wave of events.”
About IRI’s MarketPulse Survey
IRI provides new survey results at the end of each calendar quarter covering shoppers’ behaviors and attitudes as they directly relate to their strategies for learning about, purchasing and utilizing CPG and healthcare products, as well as information regarding perceptions of economic conditions and their ability to provide for their families. For complete MarketPulse coverage, visit: http://www.iriworldwide.com/Insights/Publications/MarketPulseSurvey.aspx. For more information about customizing the research for a particular category or industry, please contact IRIMarketing@IRIworldwide.com.
IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action. We go beyond the data to ignite extraordinary growth for our clients in the CPG, retail and over-the-counter healthcare industries by pinpointing what matters and illuminating how it can impact their businesses across sales and marketing.
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