1) Go West (or South) Young Man: Jobs (and therefore, people) are quickly migrating South and West: Lower taxes and fewer unions continue to encourage economic growth in the South and West. Conversely, regulations in many northern states, such as New York, are less favorable for businesses. Compounding the problem (or the opportunity for the South and West) is the fact that entire families, not just the younger workers, are moving. MR questions: How does this shift effect the consumption of your products and services? Should you test new concepts that will play better in the South and West? Should you refine the allocation of your media spend and/or the messaging behind your marketing?

2) Multi-Cultural Nation: While white non-Hispanics still comprise two thirds of the US’s 300 million people, it is the slowest growing segment at only 2%. The Hispanic population has grown over 40% since 2000 which makes it the largest minority group in the US at 50 million people (or 16%). MR questions: Do you really understand Hispanic consumer preferences as they relate to your products and services? Really? Many people give it lip service but fail to really invest in understanding this population. Do your customer satisfaction and awareness and usage studies delve deeply into Hispanic preferences?

3) Women on the Move: In a 2009 report, the Census Bureau revealed that more women had graduated college than men for the first time in US history. While the deep recession in male-dominated industries like construction and manufacturing has contributed to this shift, the increased role of women in the economic engine is a trend that’s likely to continue (see a related blog post here about women and their increased earning and purchasing power). MR questions: Are you looking at women through an outdated lens? Does your research fully understand the unique preferences of the all-powerful female consumer?

4) Power to Pops: It is forecasted that there will be 70 million grandparents by 2010. That’s a massive increase when you consider there were just 47 million in 1990. In effect, the number of grandparents in the US grew five times faster than the overall population. More importantly, grandparents are living with their children, helping with unmarried mothers (their daughters), and making spending decisions for the household. The bottom line is this: American consumers who are 50+ years old now “control the vast majority of assets and show the most economic growth.” As a result, marketing research and advertising budgets should shift accordingly, from the current allocation of 10% on that demographic to as much as 40%. MR questions: How well do you market to the grandparent demographic? Does your marketing research properly account for the grandparent demographic? How can you improve your questionnaire design, sampling and analytics in order to better understand this critical segment of the US population?

5) Christmas Spending Cheer: The Ad Age report forecasts “a small but encouraging spike in consumer spending” for this Christmas season. Furthermore it predicts, as do many other economists, that the recession in real estate will end in the spring (and construction in the summer). States likely to see the earliest turnaround include Texas and Florida, owing mainly to their relatively young populations and healthy industries. MR questions: How can you tweak your pricing and messaging to gain the most from this modest spike, without compromising the equity of your brand? Is there pent up demand for your products and services that poised to release once the psychological savings thresholds are achieved? If so, what are those thresholds and how can you ready your offerings and messaging to take full advantage of a resurgent US consumer?

David Wilson
CEO
FGI Research

Seniors Express Worry
In an effort to gauge the level of concern the average American has about his or her retirement, FGI Research conducted an independent survey entitled, “Consumers in Crisis.” The survey was designed to identify and measure how American consumers are reacting to changes in the economy. We asked respondents, with demographic qualities that reflect the 2000 census data, for their opinions. A clear majority of the seniors we contacted voiced concerns about their financial futures. In fact, the study revealed that 56% of seniors (aged 65+) are worried about having enough money on which to retire. As noted in the 60 Minutes report, “Many [seniors] fear they will never get to retire.”

All Demographics Feel the Pinch
Seniors today aren’t the only ones interpreting ill omens. When asked about their personal finances, half of all respondents said that their financial situation has “gotten worse than it was a year ago.” So, what is the answer for those Americans who are struggling to weather the financial storm? 63% of those surveyed are resolved to save more money in the next twelve months. Reflecting recent events, 53% believe that a government-insured savings account is the safest place for their investments, highlighting perceptions of economic instability. Indeed, the public is worried and looking for a safe investment. Companies competing for business in today’s economy would do well to address this issue in an effort to reassure consumers. Establishing, or in some cases, re-establishing, trust is a significant step along the path toward brighter futures.

Actionable Insights
The economic recession has obvious effects, on multiple levels, for anyone involved in business. Marketing must be oriented to express sensitivity to economic instability while still convincing consumers to buy. Pricing must shift to reflect tighter budgets for everyone. Internal restructuring will help companies save money, too. Where and how consumers save, invest their money, or spend money, all impact purchasing decisions and have real implications for those attempting to reach those consumers. The best way to survive the recession is with targeted research to follow the trends. Using survey data supported by the most advanced research methods, companies will have the know-how and resources to help them get through tough times along with everyone else.

Next Steps You Can Take

Survey Methods
Date of Study: 5/11/2009
Total Responders: 1402
Sample Source: FGI SmartPanel