NPD ''Fast Checks'' Study: Consumers Speak Out On the U.S. Economy

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--The NPD Group, Inc., leading provider of consumer and retail information, announced the results of a recent “Fast Checks” study entitled: Consumers Speak Out On The U.S. Economy. According to the study’s results, most consumers think the U.S. is in a recession or headed for one.

“Consumers are tuned into news about our economy, but they aren’t so quick to change what they are doing, including where they shop.”

Do you think the U.S. economy is currently in or headed for bad economic times or a state of recession?
Yes – we are currently in bad economic times/recession	43%
Yes – we are headed for bad economic times/recession	36%
No	9%
Don’t know/not sure	12%

It appears that consumers, across many retail segments, do not intend to change their behavior yet. “Even with all the media attention on the economy, consumers still seem to be focused on their needs and desires,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “Consumers are tuned into news about our economy, but they aren’t so quick to change what they are doing, including where they shop.”

Which of the following statements best reflects how today’s economic conditions have affected where you shop for products, if at all?
No impact – I still shop where I’ve always shopped	55%
Little impact – I’ve changed just one or two of the retailers I’ve shopped at	26%
Medium impact – I’ve changed many of the retailers I’ve shopped at	15%
Strong impact – I’ve changed all of the retailers I’ve shopped at	4%

More than half of consumers surveyed said they were least likely to change spending habits on affordable purchases like books, movies, cosmetics, fragrances, or an indulgence that can pass for a necessity like footwear. Interestingly, more than one in 10 who plan to spend on home improvement plan on spending more. "Certainly the housing market is another source of concern for consumers. These results would suggest more people are looking to improve the house to spruce it up for themselves or to make it more attractive to a potential buyer,” observed Cohen.

What is the one thing that would most likely tip the balance for consumers and rein in spending? Cohen says it’s job security. “Twenty-six percent of the study’s respondents are concerned about job security. Should a real or perceived threat to U.S. consumers’ jobs come along, that will shift the dynamic and likely have the greatest real effect on our economy."

What are the implications for retailers? Consumers will clearly be on the look-out for incentives to shop.

Which of the following money-saving promotional events and/or programs, if any, do you think you are more likely to take advantage of now and in the coming months compared to six months ago?
Store Sales	50%
Coupons	38%
Discount and/or membership programs	8%
Other	4%

“I think the consumer is still going to be there, but retailers are going to have to do more to get them.” Cohen said, “Certainly promotional incentives of all kinds will be key but how you market and communicate will help seal the deal.”

Methodology: The NPD Group fielded this study using Fast Checks*. This Fast Checks survey was fielded to a nationally representative sample of 2,000 men and women ages 18 and older. The data has not been weighted. The data presented in this report was collected from 772 total respondents. The survey was fielded Wednesday, February 6th to Monday, February 11th, 2008.

*NPD’s Fast Checks surveys are quick flexible, and budget-conscious online surveys.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/.