SymphonyIRI MarketPulse Survey Finds Shopper Sentiment Dips to Lowest Point in a Year

CHICAGO--(BUSINESS WIRE)--As 2012 came to a close, the looming debt ceiling and much talked about “fiscal cliff” certainly did nothing to boost consumer confidence. In fact, SymphonyIRI’s Q4 2012 MarketPulse survey found that shopper sentiment dropped to its lowest point since Q3 2011. While consumers across all age groups feel the strain of ongoing economic strife, those aged 35-54 convey particularly gloomy attitudes, with 43 percent stating that their financial situation deteriorated in 2012.

“Through quarterly analysis of two full years of MarketPulse data, we have consistently seen a solid representation of shoppers with a gray outlook on their financial health”

“Through quarterly analysis of two full years of MarketPulse data, we have consistently seen a solid representation of shoppers with a gray outlook on their financial health,” says Susan Viamari, editor of Times & Trends, SymphonyIRI. “This sentiment remains very prevalent, especially for those aged 35-54, who are really influencing trends, because they are in their prime earning and family-raising years. On top of today’s economic concerns, this age group also is thinking about college expenses and retirement. All of these pressures are converging to heighten their concern about their futures and leading the way on many conservative shopping strategies and money-saving behaviors, so marketers need to pay close attention to them.”

SymphonyIRI Shopper Sentiment Index

Launched in Q2 2012, SymphonyIRI’s Shopper Sentiment Index provides deep insight into how the economy is impacting consumers and changing how they approach grocery shopping. The Shopper Sentiment Index provides perspective in terms of price sensitivity, brand loyalty and changes in spending required to maintain desired lifestyles. With a benchmark score of 100 based on Q1 2011 information, a Shopper Sentiment Index score of more than 100 reflects consumers that are less price driven, more loyal to favorite brands and better equipped to maintain their desired lifestyle without changes.

The index illustrates that shopper sentiment took a noteworthy uptick in early 2012, with a sizable segment of the population beginning to anticipate sunnier skies ahead. But, when brighter days failed to materialize, consumers’ concerns for their future financial health began to waver and sentiment slid once again. Latest findings from the Shopper Sentiment Index reveal that overall sentiment dropped to 94 in Q4 2012 versus 99 in Q3. This is the lowest point since Q3 2011, and the decline was driven largely by the 35-54 age segment.

Proceeding with Caution

With 27 percent of 35-54 year olds and 22 percent of consumers on the whole having difficulty affording regular groceries, it is no surprise that folks across the board are maintaining their cautious approach to shopping. The following represents prevalent shopping strategies and highlights how 35-54 year olds stack up to the population as a whole:


	% of Consumers	35-54
		Index*
• Buy brands other than preferred because they are on sale	29%	115
• Select products to create more meals at lower cost	26%	112
• Choose products due to loyalty card discount	22%	121
• Steer clear of certain aisles to avoid unplanned purchases	15%	120
• Use coupons to make lists	37%	109

*Index: Age 35-54 versus Total Population (Average=100)

Saving a Buck

Since the beginning of the economic downturn, consumers have found creative ways to save money. From eating out less to cutting back on doctor visits, consumers are evaluating the money they spend across the board. And, 35-54 year olds are tightening their belts even more than the average consumer. The following are some of the top money-saving tactics from Q4 2012:


	% of Consumers	35-54
		Index*
• Eating out less often than before downturn	52%	107
• Going to salon/spa less often	50%	109
• Self-treating when possible to avoid doctor visits	40%	113
• Using less over-the-counter medications to save money	35%	111
• Sharing more products among household members	30%	119

*Index: Age 35-54 versus Total Population (Average=100)

Living on the Cheap

The lifestyles of the rich and famous are a long-forgotten dream, and simplicity is the new sophistication in today’s world. For instance, lavish meals in restaurants have been pushed aside for dining in, with 42 percent of 35-54 year olds versus 36 percent of all consumers going out with family and friends and socializing less often. Instead, 37 percent of 35-54 year olds and 32 percent of all consumers are eating more family meals at home. And, it doesn’t stop there. On average, 40 percent of consumers are bringing snacks and food to work and school to save money. Those aged 35-54, in contrast, are a whopping 22 percent more likely to do so.

“Those aged 35-54 have already established relationships with CPG banners and brands,” adds Viamari. “However, given the level of concern they are feeling about their financial stability, the ball is now in the court of marketers, who can help them navigate these tricky waters with the right product assortments, promotions and pricing.”

About SymphonyIRI’s MarketPulse Survey

SymphonyIRI provides new survey results at the end of each calendar quarter, covering shoppers’ behaviors and attitudes as it directly relates to their strategies for learning about, purchasing and utilizing CPG and healthcare products, as well as information regarding perceptions of economic conditions and their ability to provide for their families. For more information about customizing the research for a particular category or industry, please contact SymphonyIRIMarketing@SymphonyIRI.com.

About SymphonyIRI Group, Inc.

SymphonyIRI Group is a global leader in innovative solutions and services for the CPG, retail and healthcare industries. SymphonyIRI uniquely combines powerful market and shopper information, predictive analytics, flexible technology solutions and consulting services to help its clients drive and grow their businesses. For more information, visit: http://www.SymphonyIRI.com.