Real You: Consumer Perception Drives Spending Habits in Down Economy

Posted on | October 31, 2008 |

By Kaira Sturdivant Rouda

Let’s hope the media puts a cheery costume on the economy this Halloween because perception is key to retail spending right now. Unfortunately, women (the vast majority of retail spenders) can’t easily be tricked. You’ll need to treat select consumer segments who are still in the buying spirit.

According to Acxiom Corporation’s Retail Consumer Dynamics Study, an analysis of consumer shopping behavior and attitudes, there are variations in the way consumer segments see the economy, which affects how they will defer spending; the type of stores they will visit; and generally how they go about their daily shopping.

The study identifies nine consumer behavioral segments, placing those segments into three distinct groups that reflect consumers’ potential future behavior:

Potential Rebounder (33% of consumers) - those likely to loosen up on spending sooner
Status Quo (48%) - those not likely to change from current behavior
Digging In (19%) - those tightening spending and retreating further

Among the consumer segments that the study identifies:

Savvy Spenders (mostly married, affluent, young or mature, living in outer suburbs and rural communities) are more likely to spend sooner than other segments, given some improved circumstances.
- Of the Savvy Spenders, 37% are shopping sales more often.
- Savvy Spenders favor department stores for their combination of category offerings and brand/price options.
Those likely to shop more online are the Tight with Purpose; they are married and have children, and they’re upper middle income with professional or management careers.
The It’s My Life segment - mostly affluent young consumers maintaining a child-free city lifestyle - are not letting economic conditions change their shopping behavior. They shop in category-killer stores to benefit from the blend of brand selection and price.

Take this research into consideration and decide how you will talk to her, what messaging will resonate with the time-starved professional mom who’s working on a tight budget. Grab the attention of the Gen Y-her who’s still looking for the latest and greatest. And despite what media ghouls may say, remember, not all consumers are running scared right now. For more about consumer spending in this spooky market, check out these blogs and articles.

Happy Halloween!

Kaira Sturdivant Rouda is the creator of Real Living, the first women-focused real estate brand. She has more than 20 years of experience marketing to women and is the author of Real You Incorporated: 8 Essentials for Women Entrepreneurs. To learn more, visit www.RealYouIncorporated.com and join the community.