consumers - media group online · attitude towards life and their self-perception of being...

Behaviors, Perceptions and AttitudesPeople and, therefore, consumers are complex creatures. It’s even more the case today, as the world, in general, and the lives we live, specifically, bear little or no resemblance to the world and the lives of our childhood, whether we are Baby Boomers or Millennials.

The rapid technological transformations we are experiencing today and those that will overwhelm and amaze us during the remainder of our lives will create a world that will seem like we’re living on another planet in a “galaxy far, far away,” compared to the last half of the 20th century.

Of course, we can choose to hide in a cave or use our education (and the constant acquisition of new knowledge, which is the mission of Media Group Online), our skills and our indomitable human spirit not only to understand our world, but also to make sense of it and identify and benefit from the unprecedented opportunities it affords us.

For media advertising sales reps and the local businesses and retailers you represent, reaping the rewards of these unprecedented opportunities starts with understanding today’s consumers – their behaviors, perceptions and attitudes.

As has been stated in many Media Group Online reports, consumers have taken control of their relationships with brands and retailers. A deeper understanding, therefore, is required, compared to the relatively easy means of persuasion, coercion and, dare we say, manipulation of consumers during the 50’s, 60’s and 70’s. Today’s consumers will have none of it.

Part 1 of this two-part Special Report shares many of the latest insights about consumers, with part 2, Consumers 2018: Reach, Attract, Capture and Hold, presenting the strategies and practical actions you and your clients can take to benefit from a greater understanding of today’s consumers.

Consumers 2018, Part 1 A Special Report from Media Group Online, Inc.

www.mediagrouponlineinc.com

Consumers 2018, Part 1 www.mediagrouponlineinc.com

Making Our Way Through the Big, Wide WorldQuite likely, people/consumers’ perceptions of their place in the world is the most difficult for brands, retailers and advertisers to understand. Although we avoid being political in our reports, it’s clear that many, if not most, Americans have a negative perception of the country’s current situation, although many surveys find two-thirds or more Americans are very happy with their lives.

Major technological and demographical changes have been difficult for many of a more traditional/conservative perspective, creating a feeling of being a stranger in the country they love.

Best Representation of One’s Self and Values, by Generation, 2018

Representation Millennials Gen XBaby

Boomers

The country in which I live 15% 22% 31%

The state in which I live 18% 16% 13%

The local community in which I live 12% 12% 13%

The online communities of which I’m a part 14% 7% 3%

The sports team for which I root 9% 6% 3%

The school I attended/attend 8% 4% 4%

Mindshare North America (American Psychology Association, Mindshare’s Pool, PRRI, Simmons), January 2018

The challenge for advertisers is to communicate with different groups of consumers based on their self-identification without appearing to side with one group versus another.

Pursuing Happiness Until We Catch It

It’s an age-old misperception that happiness is reserved for youth; however, the 2017 UM Media in Mind annual study of consumers’ media consumption and lifestyle reveals why happiness increases with age.

Those Who Are Very Happy with Life, by Age Groups, 2017

Age Group Percent

18–20 18%

21–29 30%

30–39 33%

40–49 28%

50–59 31%

60–69 37%

Men, 70+ 44%

Women, 70+ 49%

MediaVillage (UM Media in Mind 2017), January 2018

Older Americans perceive their lives to be very happy for three primary reasons: being happily married, a positive attitude towards life and their self-perception of being “trustworthy and competent” and “kind and goodhearted,” specifically. The study also found 56% of older, happy Millennials think “it is important companies act ethically.”

Tapping into older Americans’ feelings of happiness is also a good strategy for brands and retailers, as Baby Boomers still control most of the country’s wealth and have vowed to remain active as they age – and are more active consumers than their parents.


Financial and Employment Well-BeingAccording to Fluent’s Consumer Outlook 2018 report, 57% Americans had a positive perception of their personal financial situation. Unsurprisingly, those with an annual household income of less than $35,000 were the least positive, at 50%; however, somewhat surprisingly, it’s those with a middle income, $35,000–$100,000, who were most positive, at 63%, compared to 56% for those with incomes of $100,000+.

Despite whatever anxiety Americans of many stripes and persuasions may be experiencing, we are still an optimistic lot. The Media Audit’s 2018 Rolling Aggregate Report of 50 US markets reveals that 33.4% of all adults surveyed, or more than 40 million Americans, considered themselves financial optimists, expecting to be better off 6 months from today.

What is particularly interesting in this data is that the most optimistic are older Millennials, younger Gen Xers and younger Baby Boomers and African Americans and Latino Americans had very high indices.

Selected Demographics of Financial Optimists, 2018

Demographic Percent Index

Adults, 25–34 23.8% 135

Adults, 35–44 20.6% 120

Adults, 55–64 13.2% 80

African Americans 14.9% 135

Latino Americans 18.6% 112

Based on The Media Audit’s 2018 Rolling Aggregate Report surveys

Employment Satisfaction and Security

The general employment trend in the US continues to be good to very good, as there was an increase of 313,000 jobs during February 2018, compared to 200,000 for January, and the number of job openings during January, 6.3 million, was a new record. Nonetheless, the long-term unemployed didn’t change during February, but has been reduced by 369,000 during the past 12 months.

The Fluent report found more than 50% of those surveyed were satisfied with their current employment and felt their job was secure during the next year. As with personal financial situation, those with incomes less than $35,000 were the least satisfied and secure in their employment.

Current Employment Satisfaction and Job Security, by Income Level, November 2017

Employment Satisfaction

Total US

< $35K$35K – $100K

$100K+

Very satisfied 53% 41% �54% 63%

Somewhat satisfied 34% �39% �36% 23%

Not very satisfied 9% 13% 7% 7%

Not at all satisfied 4% 6% 3% 6%

Job SecurityTotal US

< $35K$35K – $100K

$100K+

Very secure 56% 47% �58% �65%

Somewhat secure 33% �36% �33% 19%

Not very secure 8% 11% 6% 9%

Not at all secure 5% 6% 3% 8%

Fluent, January 2018 Arrows indicate significantly higher than comparison group at 95% confidence interval


Consumers and Companies: Differing ViewsOne of the primary reasons marketers/advertisers find it so difficult to engage successfully with consumers is some basic misperceptions about their shopping/consumption behaviors.

A comparison of two Yes Lifecycle Marketing surveys – the first of 1,000 marketers at the September 2017 Shop.org conference and the second of 1,004 during March 2017 who had received a marketing email during the past year – reveals the major disconnects between marketers and consumers.

Ranking of Consumers’ Price Consciousness, by Generation, 2017

Marketers’ Ranking Consumers’ Ranking

Generation Z Baby Boomers

Millennials Generation X

Generation X Millennials

Baby Boomers Generation Z

Yes Lifecycle Marketing, March and September 2017

Marketers are also quite wrong when comparing which channels were most influential when researching a purchase.

Ranking of Consumers’ Most Influential Channels, 2017

Marketers’ Ranking Consumers’ Ranking

Email In-store

Social Internet

Internet Email

Direct mail Direct Mail

In-store Display

Display Social

Yes Lifecycle Marketing, March and September 2017

Another report, from InMoment, “2018 CX Trends Report: What Brands Should Know About Creating Memorable Experiences,” also indicates how brand professionals’ perceptions are quite different from consumers (or Internet users).

Factors That Contribute to a Negative Brand Experience, Internet Users vs. Brand Professionals, December 2017

FactorInternet Users

Brand Professionals

Interaction with staff (poor attitude, lack of

knowledge, slow)74% 29%

Lack of understanding

consumer’s needs46% 26%

Staff availability when help is needed 41% 28%

Product or service didn’t match expectation

40% 27%

Impersonal/Generic experience 22/% 10%

Price 21% 27%

Environment 12% 12%

Unable to customize product/service 9% 12%

Mobile app or Website 8% 6%

Technology in store/at location 7% 7%

Unable to trial/test product/service 4% 14%

Self-service checkout (not easy to operate

or unavailable)4% 5%

eMarketer Retail (InMoment), March 2018


What Consumers WantThe era of the passive consumer is but a fuzzy outline in retail’s rearview mirror. Consumers’ demands are now a force that is pushing brands and retailers to respond, but many are still adapting and running for their lives.

Consumer demands take three forms:

1. Convenience and instantaneous availability

Because the 21st century lifestyle is one of 24/7/365 connectivity to the world and of many diverse forms, such as single-parent and dual-parent households of the same gender, ethnically-mixed marriages and flexible employment and work hours, consumers need almost universal access to products and services.

Of course, Amazon pioneered the response to this demand with two-day delivery, which has spawned a multitude of not only independent delivery services, but also new delivery technologies, such as autonomous 18-wheelers, drones, sidewalk robots, etc.

2. Exchanging some convenience for savings

Price has always driven consumers’ choices, but many are now willing to exchange some of the convenience they demand to save money. Although it requires them to be more involved in the shopping process, consumers are embracing off-price retailers, discount grocery stores, dollar stores and warehouse clubs.

What makes this demand even more pronounced is that it isn’t just lower-income shoppers who are making this choice, but also those with higher-incomes.

3. Options to traditional retail

The proliferation of subscription services, fashion rental, ride-sharing and other new channels to access products and services is an indication of consumers’ demand for more options than the traditional retail environment.

More consumers are living in smaller homes in urban areas, which reduces the space to fill with material possessions; and many younger consumers are exchanging the lifelong pursuit and accumulation of those possessions for life-affirming and -altering experiences.

Demanding a Change in Brand Content

An active demand trend among consumers for some time has been the reduction or virtual elimination of marketing/advertising messages that are solely focused on promoting and selling. Instead, consumers want content that is, first and foremost, accurate and informative, which were their first and second choices in a February 2018 Adobe survey.

Maybe, more compelling for brands and advertisers of all sizes are the characteristics of content that frustrates consumers the most.

Most-Frustrating Characteristics of Brand Content, February 2018

Characteristic Percent

Too wordy/poorly written 44%

Isn’t relevant to me or my situation 42%

Poorly designed 33%

Isn’t optimized for my device 29%

Too personalized to the point of creepiness 26%

Old or stale 24%

No video or images 16%

Marketing Charts (Adobe), February 2018


The Risk of Lost LoyaltyConsumers have become so savvy (and demanding) they are judging brands, businesses and advertisers not just on their merchandising practices (selection, price, etc.), but also on their social and corporate image.

For example, a September 2017 Euclid survey of 1,500 US consumers who own smartphones revealed what could cause them to boycott a brand.

Company Actions That Could Result in Consumers Boycotting the Brand, September 2017

Action Percent

Racism 58%

Sexism 50%

Insensitive comments on a social platform 45%

Negative news stories about the company 40%

A different political stance 32%

No boycott regardless of action 16%

Euclid, December 2017

Interestingly, when this data is presented according to age group, a higher percentage of adults 55+, or 62%, would boycott a brand because of racist actions than those 18 to 34, 58%, and 35 to 54, 55%, and sexist actions, 54%, 48% and 46%, respectively.

Two other sets of data points from the Euclid survey are somewhat counterintuitive, but important for retailers to understand in the context of consumer loyalty.

Reasons Consumers Didn’t Make a Purchase When Visiting a Retail Store, September 2017

Reason Percent

It didn’t have what I wanted 55%

It didn’t have my size 52%

I was just browsing 46%

I will wait for a sale 46%


The Likelihood of Buying at a Retail Store (Online or In-Store) During the Coming Weeks When a Previous Visit Resulted in No Purchase, September 2017

Likelihood Percent

Very likely 25%

Somewhat likely 41%

Somewhat unlikely 16%

Very unlikely 4%

Not sure 15%


These two tables seem to indicate that customer loyalty isn’t lost when a purchase isn’t made, which may mean the initial visit was very influential to compel customers to return.

Another 2017 survey, from CodeBroker, of 1,207 US consumers found their primary frustration with retailers’ loyalty programs is having to carry a physical card. It’s another indication consumers are more technologically savvy than brands and retailers; 71% would find a loyalty program more useful and convenient if the card and rewards information were accessible via their mobile phone.

How Shoppers Want to Access Loyalty Programs, 2017

Accessibility Percent

SMS or text message 34.75%

Mobile app 18.50%

Apple Wallet or Android Pay 15.40%

Facebook Messenger 3.50%

Other 27.85%



Purchase PlansData from Statista’s Global Consumer Survey 2018 of 10,150 US Internet users, 18 to 64 years of age, reinforces some traditional perceptions of purchasing decisions by gender, but also reveals some equality among the sexes.

Purchasing Decisions, by Category and Gender, November 2017–January 2018

Purchasing Decision Women Men

Daily consumer goods 81% 65%

Clothing, shoes and accessories 89% 75%

Furniture and household goods 66% 53%

Toys and baby products 38% 29%

Household appliances 65% 63%

Media (video, music, games) 62% 64%

Finance and insurance, telecommunications and

electricity provider56% 66%

Consumer electronics 69% 79%

Real estate 37% 47%

Cars, motorcycles, bicycles 50% 64%

Statista, February 2018

The Media Audit’s 2018 Rolling Aggregate 50-Market Report, representing more than 62 million adults 18+, mirrors Statista’s findings.

Plan to Buy, by Gender, January 2018Category Women Men

Home during next 2 years 12.5% 12.8%

New car/van/truck/SUV 8.7% 13.1%

New furniture during next 12 months 19.7% 16.4%

Major household appliance during next 12 months 18.8% 15.5%

New TV during next 12 months 20.2% 25.6%

Smartphone during next 12 months 1.8% 2.1%


A closer look at data from The Media Audit reveals the three top age groups for each planned purchase category are adults, 25–34, 35–44 and, interestingly, 55–64, except for plan to buy a home and smartphone. In the home category, adults 55–64 are fourth with adults 21–24 third, but in the smartphone category, older adults are first, with women 65–74 second and men 65–74 a close third behind men 25–34.

These comparisons clearly indicate that younger Baby Boomers are still a strong consumer group and, as other sources have found, smartphone penetration among seniors is increasing faster than any other age group.

By combining both genders, or adults 18+, and then comparing each category by ethnicity and their indices, African Americans, Latino Americans and Asian Americans have higher indices than Caucasian Americans in most of the categories.

Adults 18+ Who Plan to Buy, by Ethnicity, January 2018

CategoryCaucasian Americans

African Americans

Latino Americans

Asian Americans

Home during next 2 years 75 149 158 110

New car/van/truck/SUV 82 110 143 156

New furniture during next 12 months 93 119 113 99

Major household appliance during next 12 months 97 95 115 92

New TV during next 12 months 86 128 136 92

Smartphone during next 12 months 99 133 89 71



Drawn to DigitalDigital technology is not only essential to everyone for communications, whether voice, text, visuals or social media, but also a primary tool for the consumer experience.

As stated in Media Group Online’s March 2018 New Media Insights Report, It’s Time (Past Time) to Equip Retail Store Associates with a Mobile Device, many retailers are accelerating their investment in digital devices for store associates. Equipping them with these devices can be very beneficial for customer engagement and to generate more sales.

In a rush to equip their sales associates, however, retailers must also be aware many of their customers consider themselves very technologically savvy and may not need the assistance of sales associates with digital devices.

For example, a 2018 study from HRC Retail Advisory found 30% of respondents to its survey ranked mobile checkout and apps with personalized recommendations as critical components of a positive in-store experience; however, only 17% said they would prefer sales associates to provide these services via a digital device.

Unsurprisingly, a Zebra Technologies survey of US Internet users revealed that younger consumers were more likely to consider the assistance of sales associates equipped with a digital device to be helpful: 58% of those 20 to 36, compared to 36% of those 53 to 71.

Emerging Technologies Internet Users* Would Like Their Favorite Brands to Use, December 2017

Technology Percent

Automatic payment using digital shopping carts 32.9%

Interactive fitting rooms 24.9%

Biometric ID and payment 19.8%

Virtual/Augmented reality and interactive signage 19.7%

Voice-activated shopping 16.7%

In-store robots 15.6%

eMarketer Retail (iVend Retail and AYTM Market Research, December 2017*9 countries, including the US and Canada

Clearly, there is much to digest and share with your prospective and current clients here, which is why this Special Report is just part 1 of this enormous topic. Consumers’ behaviors, perceptions and attitudes will continue to evolve – and rapidly – confounding brands, businesses, retailers, media and ad agencies.

Those who continue to educate themselves, remain current with new trends and communicate often and deeply with their customers will maximize foot traffic, sales and long-term customer loyalty.

Sources: Mindshare North America Website, 3/18; MediaVillage Website, 3/18; Fluent Website, 3/18; US Bureau of Labor Statistics Website, 3/18; CNBC Website, 3/18; MarketWatch Website, 3/18; The Media Audit Website, 3/18; Yes Lifecycle Marketing Website, 3/18; eMarketer Retail Website, 3/18; Coresight Research Website, 3/18; Marketing Charts Website, 3/18; Euclid Website, 3/18; CodeBroker Website, 3/18; Statista Website, 3/18.

Prepared: March 2018

© 2018 Media Group Online, Inc. All rights reserved.

Media Group Online, Inc.103 Sterling Mine RoadSloatsburg, NY 10974 Phone: 866-921-1026

www.mediagrouponlineinc.com

consumers - media group online · attitude towards life and their self-perception of being...

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