Retail News Breaks Archives
New survey shows most consumers remain cautious
July 1st, 2010
BOSTON – A recent survey conducted by L.E.K. Consulting shows that the general population in the United States remains dubious about the economic recovery, with only 12% expecting their personal finances to improve by this fall.
Moreover, 65% do not expect their finances to rebound significantly for the next year to two years.
Affluent respondents (households earning more than $150,000 annually), on the other hand, are upbeat about the recovery. Nearly 40% of that segment believe their spending was either not materially affected by the recession or has already returned to pre-recession spending levels. By contrast, the general population has decreased its spending by more than 4% since the start of the recession and plans no spending increase in the foreseeable future. The affluent, however, expect to ratchet up their spending by 3.5% on average.
Among other insights, the Spring 2010 L.E.K. Consulting Consumer Sentiment Survey, which was based on a poll of 2,000 U.S. households conducted in April, found that social media are exercising an increasing influence on purchase decisions. According to the survey, consumers on social networks who see product recommendations from friends plan to purchase those items 12% of the time. More significantly, the report also found that shoppers were more inclined to respond to emails from retailers if they have joined a retailer’s mailing list (26%) than they are to respond to an email forwarded by a family member or friend (21%).