Which Consumer Groups are most likely to spend during Challenging Economic Times?

Acxiom Corporation announced the release of the first issue of its Retail Consumer Dynamics Study (RCD), an industry-specific analysis of consumer shopping behavior and attitudes in today’s difficult economic times. The study revealed variations in how each consumer segment looks at the economy today and how that perception affects whether and how they will defer spending; the type of stores they will visit; and generally how they go about their daily shopping.

“Even though all consumers are facing huge economic uncertainty, their responses differ – and not along conventional demographic lines,” said Jie Cheng, vice president of analytics and consumer insights at Acxiom. “Rather than thinking in simple terms of who is spending more versus who is spending less, this study allows us to see how consumers are making their decisions on when and where to shop and what to purchase.”

Acxiom’s study identifies nine consumer behavioral segments that provide retailers with new, actionable insights to improve their ability to connect with key consumer targets. The study places these segments into three distinct groups reflecting consumers’ potential future behavior – those likely to loosen up on spending sooner, those not likely to change from current behavior, and those tightening spending and retreating further.

Insights drawn from this distinctive study allow retailers to anticipate shopping patterns and plan accordingly.

Key research findings include:

– “Savvy Spenders” (mostly married, affluent, both young and mature, living in outer suburbs and rural communities) are more likely to spend sooner than other segments, given some improved circumstances

– Of the “Savvy Spenders,” 37 percent are shopping sales more often

– “Savvy Spenders” favor department stores for their combination of category offerings and brand/price options

– Those likely to shop more online are the “Tight with Purpose,” who are married with children, upper middle income with professional or management careers

– The “It’s My Life” segment _ mostly affluent young consumers maintaining a child-free city lifestyle _ are not letting current economic conditions change their shopping behavior. They shop in category killer stores to benefit from the blend of brand selection and price.

“This challenging economy creates an exceptional opportunity for retailers and consumer product manufacturers to target direct messages to specific consumer segments in order to sustain and maximize a return on marketing investment,” said Jim Harold, industry executive for retail and consumer markets at Acxiom.

“BIGresearch is excited to see Acxiom applying the consumer insights from our surveys to create actionable guidance for their clients,” said Gary Drenik, president and CEO of BIGresearch. “The combination of BIGresearch’s ongoing consumer panel surveys with Acxiom’s PersonicX consumer life stage segmentation system provides an accurate look at how the weak economy is affecting shoppers.”