NEW YORK—Shoppers are becoming more frugal by cutting back on spending by switching brands and stores, and this behavior may continue after the economy recovers, according to an online survey conducted in October 2009 by Booz & Co.
The "New Marketing Imperatives" survey of 2,000 U.S. consumers said to be representative across demographics, geographies, product categories and retail formats, found only 9 percent said they'll spend at pre-recession levels during the next year, and only one-third (32 percent) think their household financial status will change for the better.
Shoppers are willing to change shopping habits to do so, as nearly two-thirds said they would switch stores in pursuit of lower prices – even if doing so were inconvenient. Booz & Co. found the highest levels of brand switching were in household products and food at home, noting the abundance of private-label alternatives in this category. The said shifting to private-label products picked-up noticeably during the recession.
Other findings of the survey:
- A consistently low price is particularly important to consumers when they are choosing a shopping destination for household products, health and beauty products and non-alcoholic beverages.
- Young consumers tend to buy online, regardless of product category, and are price sensitive with few brand or store-format loyalties.