Con­fi­dence in the econ­omy spurs con­sumer spend­ing

Newspapers & Technology Magazine - - Indystry Mergers & Acquisitions -

Con­sumer con­fi­dence sur­veys can mea­sure con­sumers’ plans for spend­ing. They can also pro­vide a timely op­por­tu­nity to ad­ver­tise and mar­ket your busi­ness and ser­vices.

Sur­veys that mea­sure con­sumers’ con­fi­dence in the econ­omy are a vi­tal bench­mark of eco­nomic de­vel­op­ment. We see na­tional and lo­cal agen­cies us­ing con­sumer con­fi­dence sur­veys to mea­sure the pop­u­la­tion’s sen­ti­ment in the US as well as lo­cal mar­kets.

Con­sumer con­fi­dence is an eco­nomic in­di­ca­tor. It mea­sures how con­fi­dent con­sumers are about the over­all state of the econ­omy. It also mea­sures how con­fi­dent peo­ple feel about their in­come’s sta­bil­ity. Their con­fi­dence im­pacts their eco­nomic de­ci­sions and their spend­ing ac­tiv­ity. As a re­sult, con­sumer con­fi­dence is a key in­di­ca­tor for the over­all shape of the econ­omy.

Eco­nomic in­di­ca­tors such as the un­em­ploy­ment rate, gross do­mes­tic prod­uct (or GDP), or the in­fla­tion rate in­di­cate how well the econ­omy is do­ing. They also in­di­cate how well the econ­omy is ex­pected to do in the fu­ture.

Con­sumer con­fi­dence, mea­sured by the Con­sumer Con­fi­dence In­dex (CCI), is de­fined as the de­gree of op­ti­mism on the state of the econ­omy that con­sumers are ex­press­ing through their ac­tiv­i­ties of saving and spend­ing.

For the most part, con­sumer con­fi­dence sur­veys add an­other mea­sure­ment to a mar­ket’s well-be­ing. In ad­di­tion to sta­tis­tics that mea­sure a mar­ket’s pop­u­la­tion, hous­ing and busi­ness growth, em­ploy­ment growth, cost of living, re­tail sales growth, etc., con­sumer con­fi­dence in a mar­ket adds an­other key per­for­mance in­di­ca­tor. Con­sumer con­fi­dence pro­vides a look at the at­ti­tudes of a mar­ket’s well-be­ing.

Each month the Con­fer­ence Board sur­veys about 5,000 U.S. house­holds. The sur­vey con­sists of five ques­tions that ask the re­spon­dents' opin­ions about the fol­low­ing:

1. Cur­rent busi­ness con­di­tions

2. Busi­ness con­di­tions for the next six months

3. Cur­rent em­ploy­ment con­di­tions

4. Em­ploy­ment con­di­tions for the next six months

5. To­tal fam­ily in­come for the next six months

Sur­vey par­tic­i­pants are asked to an­swer each ques­tion as "pos­i­tive," "neg­a­tive" or "neu­tral."

While con­sumer con­fi­dence can help in mar­ket and eco­nomic de­vel­op­ment, it can also be a vi­tal mea­sure­ment for you in your mar­ket­ing and brand­ing ini­tia­tives. If con­sumers have a high sen­ti­ment in the econ­omy, it pro­vides an­other di­men­sion to key in­di­ca­tors.

Ac­cord­ing to Re­search Direc­tor On De­mand, by adding a few key ques­tions about the lo­cal econ­omy, con­sumers’ fi­nan­cial con­di­tions and fu­ture spend­ing, the sur­vey can be a key com­po­nent for your brand­ing and mar­ket­ing ini­tia­tives.

If con­sumers have high con­fi­dence in your prod­ucts or ser­vices as well as your mar­ket, your mar­ket­ing and brand­ing ini­tia­tives take you to an­other level. Your cus­tomers will wel­come re­search that shows con­sumers are con­fi­dent in the mar­ket. If you can show that con­sumers in­tend to

spend more in com­ing months, it will also help you ad­ver­tise and mar­ket your prod­ucts or ser­vices.

Con­sumers in your mar­ket who plan to spend on high-ticket items, ma­jor ap­pli­ances, ser­vices, etc. can re­in­force your brand­ing that con­sumers are con­fi­dent in your mar­ket.

Con­sumer con­fi­dence sur­veys that mea­sure your lo­cal mar­ket con­di­tions have many benefits. For ex­am­ple, they pro­vide:

In­sights on lo­cal vs. na­tional con­sumers trends

Re­search on re­cruit­ing new com­pa­nies and tal­ent for county and metro area gov­ern­ment agen­cies and eco­nomic de­vel­op­ers

In­sights on con­sumers’ at­ti­tudes for fu­ture shop­ping and buying of con­sumer goods and ser­vices

Re­search to help me­dia com­pa­nies re­in­force ad­ver­tis­ing spend­ing in their mar­ket

Con­sumer con­fi­dence in the econ­omy spurs con­sumer spend­ing power. It is a great op­por­tu­nity to ad­ver­tise and mar­ket your busi­ness es­pe­cially when con­sumers are ready to spend.

Re­search Direc­tor On De­mand has con­ducted a num­ber of con­sumer sur­veys, in­clud­ing ones that mea­sure con­sumer con dence. If you are in­ter­ested in learn­ing more about how we can con­duct one for your mar­ket, feel free to con­tact us.

If you are in­ter­ested in see­ing some ex­am­ples of the many re­search, sales sheets and pre­sen­ta­tions we have done, please con­tact us any­time.

Ted Stasney Se­nior Con­sul­tant Re­search Direc­tor on De­mand tstas­ney@rdod­now.com 727-244-2971 Visit our web­site: rdod­now.com

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.