A research firm says it has identified four distinct consumer groups emerging from the Great Recession.
Chatham, N.J.-based Decitica says a new study titled "Marketing to the Post-Recession Consumer" finds that the economic downturn has redrawn the American consumer map into four groups:
Steadfast Frugalists
Steadfast Frugalists are committed to self-restraint, engaging in prudence with unequivocal enthusiasm. They make up about one-fifth of American consumer, representing all income and age groups. "Marketers will find this group to be the most challenging, as they are the least brand loyal and most likely to discount marketing messages," notes Dr. Val Srinivas, principal at Decitica, in a statement
Eighty-percent of Steadfast Frugalists say the new behaviors they have adopted will likely stay with them for a long time.
Involuntary Penny-Pinchers
Involuntary Penny-Pinchers, about twenty-nine percent of the population, have been severely affected by the recession. They are mainly made up of households with less than $50,000 in income, with more women than men.
Pragmatic Spenders
"Pragmatic Spenders are the most attractive group for marketers because of their higher spending power," says Dr. Val Srinivas. "While it is true that they have also curbed their spending, they are the most capable, both psychologically and financially, to willfully resurrect their past spending patterns," he added. This group comprises twenty-nine percent of consumers.
Income has blunted the effects of the recession on this segment. Only twenty-eight percent of Pragmatic Spenders feel the recession has changed what and how they will buy in the future.
Apathetic Materialists
Apathetic Materialists seem least changed by the recession. They have not embraced the new frugality to the same extent as others, and get minimal satisfaction from such behaviors. Only about six percent in this group find price comparison to be satisfying, in contrast to eighty-five percent in the Steadfast Frugalists camp.
I haven't had time to dig into this yet, but it does sound interesting. On its surface, I am skeptical about some facets of the study. These four groups represent just about everyone in any economic environment, so it's not clear how the Great Recession has done anything more than solidify pre-existing behaviors for all those but the involuntary penny-pinchers, the ranks of which, no doubt, have swelled over the last two years.
But still - an interesting look at the consumer mindset as we dig our way out of a giant mess.
Read more, here.
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