arnoldon: the new consumer mindset

7/30/2019 ArnoldOn: The New Consumer Mindset

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the new consumer mindset



Arold o

plor culturAl, ociAl

Ad coumr trd thAt Ar

dirctly impActig bui todAy.

through A combinAtion of culturAl

obrvAtio Ad propritAry quAlitAtiv

And quAntitAtive reseArch, we Aim to

ucovr mAigful hift i coumr

Attitud Ad bhAvior Ad provid

mArktr with wAy to hAr

th trd to bfit thir

brAd Ad bui.



As the economy makes its slow recovery, debate continues as to

how long changes in consumer mindsets will last. To help answer

such questions, Arnold has felde d a national survey twice

a year since 2008 to monitor mood, mindset, behavior and

evolving consumer priorities.

Consistent themes have become clear over this time. People

are seeking a stronger sense o control and security in theirlives. There is an entrenchment in “smart ” spending and brands

must increasingly demonstrate their value. The “right” priorities

and values are emerging.

In this latest survey, we are seeing the emergence o a more

balanced, and likely lasting, post-recession mindset. There is a

shit underway rom a control-seeking, panicked mode toward

a pragmatic approach with priorities in balance. Most people

are reevaluating or have reevaluated their lives and spending.

People are largely confdent and satisfed with their new

approaches, indicating a likely long-lasting impact on the

consumer mindset moving orward.

Not everyone is there yet. There are dierences in how easily

people are making this transition. In this Arnold On, we explore

dierent segments o emerging post-recession mindsets, and

the value and values they seek rom brands.



It’s been a long two years, and people are still in the midst o fnancial stress. Beyond the

immediacy o the Great Recession, the median household income in America was lower in

2008 than it was in 1998, adjusted or ination.1

Yet, adversity appears to make us stronger, and more grounded. Despite the recognition

that there’s still a long road ahead, people are starting to choose optimism over pessimism

and gaining an overall sense o well-being.

U.S. Well-Being Index: Continuing to Increase in 20102

ENTERINGAN ERA OFGROUNDED

OPTIMISM

1. NY Times 9/10/09

2. Gallup

67.4%

May ’10

66.4%

Jul ’09

63.3%

Dec ’08

less Anxs afnana an

q: h anxs ae a nana

san? t 2 x n 5 . anxe sae.

An e os

q: h ae enea

e nex 12 ns?

t 3 x n 7 . s sae.

60%

m A r c h

2 0 1 0

45%

J u n e 2 0 0 9

2 to 1

Arnold Peopl e Pulse June 2 009, March 2010

lean geae asan

q: h sase ae e a? t 4

x n 10 . sasan sae.

An a e pse o

q: wa 2-3 s se ese

ae a e nex 12 ns? oen-ene.

ra se--neae senen.

t ms fesee aln ha Aea

% eee e ae a es aa ee.

51%

J u n e 2 0 0 9

m A r c h

2 0 1 0

66%



Smart spending and saving are becoming the standard approach to

consumerism. Being smart means being more deliberate, considered

and prioritized (even i spending isn’t any less), and putting a higher

emphasis on saving and reducing debt.

As people prioritize, they consider where to cut back, but also when

emotional benefts justiy spending.

CONFIDENTSMARTS

“(regarding house hunting)… I argued that the hiking trail

could be a actor contributing to our happiness, and we

should worry less about things like how pretty the kitchen

oor is or whether the sinks are ancy. We bought the home

near the hiking trail and it has been great.”1

Ed Diener, Illinois

1. NY Times 8/7/2010

J u n e 2 0 0 9

m A r c h

2 0 1 0

46%

pesna ans rae: July 2010 vs. Past Several Years1

1. U.S. Dept. of Commerce

Arnold Peopl e Pulse June 2 009, March 2010

wan e sa a senn.

Ae en e “”n e sen.

en e n’ neessa sen ess.

reeaan esan e sen ne.

41%

J u n e 2 0 0 9

J u n e 2 0 1 0

45%

54%

siX%

vs

two%



mpowrig tool

gn

Consumers drive down prices

through group volume discounts.

re lase

Red Laser app lets people scan bar

codes with their cell phones to search

for the retailer with the best price.

Consumers frst undergo a sense o sacrifce – a prioritization o their needs,

not wants. In deliberating, both emotional and rational elements play a role,

with ultimate priority oten given to amily and health.

Brands must help people through the purchase process, providing the guidance

they need to make an inormed and considered decision. Consumers want

to be confdent that they are making the right c hoice, and getting the most

or their money.

WHAT SMART SPENDING LOOKS LIKE

brAd mAkig

hoppig mArtr

ban Aea

Online videos outline complex processes,

such as mortgages, and what steps

consumers should follow.

eflx

Provides a personalized rating estimate

based on your prior viewing likes and

dislikes.

smArt BrAnds todAY:

technoLoGY mAKes it eAsier to emPower PeoPLe to mAKe smArt decisions

Should I purchase this?

Is this a Need or a Want?Majority agree a “smart” purchase focuses on

needs, not wants, and controlling spending

Brands: create a need from a want with a

rational justification

Is this a Need or a Want?“I watched airline ticket prices for a month

till I got the price I wanted to pay”

Brands: make value clear

How can I get the RightInformation?Online research is key to getting informed,

with 1/3 of consumers planning to do

more online searches and 20% pla nning

to use online peer reviews more to help in

purchase decisions

Brands: provide easy-to-use tools to help

ease the decision-making process

Does it Make me Happy?

“I bought a nice tent for my husband’s

birthday, but the whole family could enjoy

it, so it was a smart buy”; “garden stuff…

although not a need, it makes us happy”

Brands: ensure you have an emotional

benefit to close the deal

The Rewarding Payoff?A “smart” purchase makes me feel:

In Control, Happy, Condent, Proud

Brands: reinforce the rewarding feelings

from making a smart purchase

Arnold Peop le Pulse Nov 2009

Open-Ended responses to describing a “smart” purchase

(Nov 2009) top responses to Q: Which best describes how

your “smart ” purchase made you fe el?

THE CONSUMERSMART PROCES



The smart, considered approach is likely here to stay awhile because, in act,

people fnd that they are actually good at it, and perhaps more importantly,

enjoy doing it.

Confdence in and satisaction with smart spending increases among women –

the household CFOs who control 73% o household spending1– and higher

income households, who may have found that cutting some of the discretionary

spending at out o their diets may have been easier than expected.

Satisaction with smart spending approaches is tied to this cultural moment

o reevaluation. Forty-nine percent o satisfed smart spenders agree that they

are reevaluating their priorities, vs 38% o those who do not fnd smart

spending approaches satisying.

SMART ISHERE TO STAY

(AWHILE)

1. AdAge “The New Female Consumer” Nov 2009

it’s doABLe & enJoYABLe

% an 5+ n 7 . sae nene n enjen ne-san enes

e senn e esean es, sn ns, sn an, e.

cofidcn sn ne-

san as

cofidcn sn ne-

san as

Joymt sn ne-

san as

Joymt sn ne-

san as

Arnold Peopl e Pulse March 201 0



On the whole, the majority o people are increasingly gaining control over their spending.

Over hal are both satisfed with smart spending approaches and confdent that they can

stick with it.

We identifed fve post-recession consumer mindsets:

confdence in and satisaction with their smart approaches moving

orward allows them to ocus on other, more emotional, values in lie

immediately ollowing Arrived, still in the midst o reevaluation

aspire to stick with smart spending, but are still actively

reevaluating and in need o greater confdence to stick with it

too constrained by the reality o their economic situations to move

orward, they need to gain more control and confdence

are simply not interested in changing their habits, likely due to

preexisting practical spending approaches

ArriVed

emerGinG

recePtiVe

AnXious

steAdY

POST-RECESSIONCONSUMER

MINDSETS

Post-recession consumermindset seGmentAtion

n o e

n J o Y m e n t

not conFident

steAdY(15%)*

AnXious(15%)*

recePtiVe(15%)*

Least engaged and motivated in reevaluation.

Likely to maintain existing pragmatic approach.

Most in the throes o continued economic crisis.

Seeking control, but not able to take steps until

more fnancial security is achieved.

Actively reevaluating their priorities and striving

to have smarter approaches, they have not yet

attained confdence moving orward.

Arrived consumers have achieved a

controlled balance and are most secure.

Emerging are ollowing suit.

emerGinG(26%)*

ArriVed(29%)*

*Arnold People Pulse March 2010, percent of total sample population

conFident(sn ne-san as)



Post-recession emerGinGmindset seGments

AnXious (15%)*

wiLL use more diY PurchAse

decision tooLs. how cAn it Be

mAde more rewArdinG?

need more ActiVe hAnds-on

GuidAnce to stArt FeeLinG more

in controL And conFident.

YounGer mALes, Less

educAted, Lower income,

hiGhest unemPLoYment.

ea aaze nn.

fnana nsa s e

ae a e. te ae n

s e sase.

rea, sa, n an sae

ae n ea n senn

e a an ens.

n aee a aaa

ane en ea an

nea n aa.

steAdY (15%)*

YounGer mALes with

FAmiLies. Lower income

But steAdiLY emPLoYed.


le nnes sea n.

te ae n ae ezn,

as e ae aea a an

n’ en se. vaes

ae sa aea – aen

a aane a an ens,

aa, nes an n.

te eas enae n e nana

eaa, n aa anxs

sae a nanes. me n

s an sasan e.

situAtion

who Are theY?

VALues

recePtiVe (15%)* emerGinG (26%)* ArriVed (29%)*

seeKinG tooLs to

simPLiFY And continue

to mAKe smArt choices.

YounGer women with

FAmiLies, AVerAGe income

And educAtion. most

emPLoYed.

women with moderAte

income, more educAted,

steAdiLY emPLoYed.

women, sLiGhtLY oLder,

And Less LiKeLY to hAVe

FAmiLies. more educAted,

hiGher income.

Ae ezn e es,

e eaze e enes an

sasan sa aaes.

ln as e a

eae nene n sn

ese aaes.

cnene a an a sae

n enee n n,

aa an nes, enae

e e ena enes

a an ens, e

an eaxan.

fa e sase e an

s. less anxs a

nanes, e ae e a

aess e es an ane

e senn as.

hae e n ee aane.

resns an sa ae

an es, s

ae a an ens.

leas ae e nn,

e nana see en .

os an sase e.

n nn s n

s an ze. han

ne s ess, ae

eee ae an n ae

e s n ens an

a an e ns n e a

ae s an.

seeKinG GuidAnce to heLP And AFFirm

smArt PurchAse decisions.



honestYsecuritY & stABiLitY

controL

AnXious*

stABiLitYFAmiLY & Friends

reLAXAtion

oPtimismresPonsiBiLitY

reALitY

recePtiVe/emerGinG/steAdY

reLAXAtionoPtimism

FAmiLY & Friends

simPLicitY

ArriVed

*While family/friends, relaxation and optimism are still important to “Anxious”

Consumers, they greatly underindex on these values relative to people overall.

toP VALues oFGrowinG imPortAnce

In the midst o the Great Recession, people understandably ocused

primarily on fnding steady ground. Insecurity reigned, and the top

personal values sought as o June 2009 were security and stability,

honesty and control.

While control and security still orm a core grounding or many today, new

values are emerging as people break ree rom the panic. Those groups

best embracing a smart spending approach are able to achieve a better

balance with what is truly important to them: amily and riends, enjoying

lie (relaxation), and hope moving orward. In act, those who have Arrived

and gone through the reevaluation process are now seeking out ways to

simpliy their lives.

EMERGING

VALUES



m f a epy by f ay.

(tse dee + nae rs + mae as)

+g pe

VALue todAY

rn e e en e a

rn ene e en e a 1

1. Iconoculture May 2010

Arnold Peop le Pulse March 20 10

Q. Which of the following are most important to you to convey the value of a product or service beyond price?

RECOMMENDED SELECTIONS, REVIEWS

FREE DELIVERY, BOTH WAYS

PRICE COMPARED TO COMPETITORS, SELECT YOUR OWN PAYMENT

People don’t want to “downgrade.” They want to get more or their money. By more

than 3:1, people would preer to “wait it out” on a s ignifcant purchase, like a new

TV or vacation, to get exactly what they want, rather than buying a less expensive

option sooner.

Beyond providing more for the money, brands also have to prove their value with more

certainty. We are all too short on time, money and energy, and we don’t have anything

to spare on brands that can’t: lv g, la k a ak ay.

VALUE TODAY: PROVE IT

BrAnds ProVinG it todAY:

these BrAnds mAKe PeoPLe’s LiVes eAsier BY tAKinG the GuessworK out oF shoPPinG



n o t s A t i s F i e d

s At i s F i e d

( u s i n gm on e y- s a vi n g t a c t i c s )

conFident(sn ne-san as)

not conFident

steAdY(15%)*

AnXious(15%)*

recePtiVe(15%)*

ArriVed(29%)*


Post-recession consumer mindsets

emerGinG(26%)*

mArKetinG to thePost-recession mindsets

Be true to yoursel. This group may respond to brands

that have core values and stick with them, and make

“smart” more un and rewarding.

riforc th brAd’ hritAg

Ad work thic.

Tap into Value and Values: continue to ocus on value

while enabling connecting with riends and amily,

relaxation and optimism.

provid fu opportuity for fAmili

to rcoct, At A grAt vAlu.

Provide guidance and tools to stay on track, recognition

and afrmation as they take steps to be more confdent.

giv ur A complt pictur of thir

fiAc with Ay grAphic Ad tip.

In limbo until greater fnancial stability comes, help

them create moments o calm control or empower

them through a great deal.

Ay compilAtio of coupo oli

Acro cAtgori.



NEEDED

TODAY

BASELINE

VALuesconnections: to FAmiLY & Friends

reLAXAtion: enJoY LiFe

oPtimism: hoPe moVinG ForwArd

controL, stABiLitY,

resPonsiBiLitY

trusted: Get it done

Low risK: Get it riGht

conVenient: mAKe it eAsY

more For the $

VALue NEEDED

TODAY

BASELINE

BRANDSTODAY NEEDTO DELIVERMORE



bAbyctr

Helps pregnant women and new parents know

what’s happening, what’s coming and how to best

prepare by simply entering baby’s due date

gk quAd

Best Buy’s Geek Squad service helps ensure

that people’s new entertainment technology

will work properly in their homes

GreAt sherPA BrAnds:

Providing the right guidance or consumers to make inormed, smart decisions

is difcult as brands try to strike the right balance between providing enabling

DIY tools vs hand-holding ull service.

We imagine the ideal role o a brand in providing guidance to be a “Sherpa.”

A Sherpa helps you 1) see the path, 2) moves you along and inorms you at

key decision points, providing the right decision-making tools, and 3) is always

there when you need them. Brands today need to provide the right number o

tools and recommendations and eliminate risk, but then can ultimately step

back to let people enjoy the pinnacle o the resulting e motional rewards

(rather than taking credit themse lves).

SHERPA ASTHE NEW

MODEL OFGUIDANCE



BRAND CHEATSHEET

smArtAPPeALHelp people make smart choices

by giving them the tools to make

smart decisions and guiding them

along the way, Sherpa-style

3

fidlity

Leads the way for people to stay

on the path to nancial health

VALue:ProVe itToday, smart is sexy, and

expectations are high. Marketers

must rst demonstrate the value

their brands deliver, eliminate risk

and make it easy

1

cv coupo ctr

Just scan your ExtraCare

card for personalized coupons

to print out

deLiVercontroL& stABiLitYThese continue to be core values

for most consumers and are

necessary to achieve in order

to focus on more emotional and

satisfying values

w york lif

Continues to emphasize

providing safety and security

for your family

2

GroundedoPtimismPeople are increasingly optimistic.

An upbeat attitude, grounded in

a practical voice, is resonant with

the times. Don’t be flippant, but

recognize people will still spend

money smartly

4

frito lAy

Rebranded to emphasize simple

happiness, grounded in simple

ingredients and their natural

sources

VALuesPost-reprioritization, people

are focusing on what is truly

most important:

• Family and friends

• Moments to relax

• Hope moving forward

• Greater simplicity

5

ZipcAr

Renting cars online by the hour

gives people full control over

car costs while opening up the

possibility of adventure



S T R A T E G

I C I NSI G H T

S G

R O U P

ARNOLDSTRATEGICINSIGHTS

GROUPArnold On is brought to you by the Arnold Strategic Insights Group. This

edition is based on results rom a nationwide online survey o 1,000 adults

conducted in March 2010 on general attitudes and behavior among adults

and secondary research.

The series will provide analysis and consumer insights across a variety o topics

and their relevant impact on how marketers communicate with consumers.

The content or this edition o Arnold On was developed by Liz Greene,

Associate Director, Business Strategy and Neela Pal, Managing Partner,

Global Director o Brand and Business Stategy.

I interested in urther discussion or a workshop, please contact us:

lsa uns

Chief Marketing [email protected]

617.587.8242

arnoldon: the new consumer mindset

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