Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
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dentsu Recovery Navigator Since the start of the COVID-19 outbreak, marketers, advertisers and consumers have sought to figure out how their lives would be changed. Now, almost a year later, our lives haven’t changed – they are changing, and will continue to do so. It is in this spirit that dentsu has created a monthly US consumer survey tracking consumer sentiment towards the changing situation, the results of which are packaged into our ‘Recovery Navigator’ reports. This report is the eighteenth iteration. You can read previous waves on dentsu.com/us/en. Survey Methodology • Administered through an online research panel, Toluna, on April 16, 2021 • Random sample of 1,000 US respondents • Age 18-70 years old • Nationally representative weighting across gender and race/ethnicity (using latest publicly available US Census numbers)
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Impulse Buying During the Pandemic 4. Mapping Financial Concerns: Consumer Recovery Segments
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Impulse Buying During the Pandemic 4. Mapping Financial Concerns: Consumer Recovery Segments
Recapping Recent Events All US residents are eligible for vaccines COVID-19 cases remain stubbornly high Concerns about slowing progress among the vaccine-hesitant population
Executive Summary January February March April 15 16 17 18 New Year, Little Change Recovery Still Eludes Hope on the Horizon Tension Between Hope & Americans Caution As the U.S. reaches another grim It appears that consumers milestone in the coronavirus Consumers react to the lessening finally feel that the pandemic is The biggest take away from this pandemic, Americans continue US case count optimistically, decisively headed in the right wave is that recovery likely will to feel the worst is ahead of however, they remain highly direction. While there is still not be a smooth road. them. Health risks are still of concerned about the risks of the high concern over health risks, concern for home-bound pandemic to their health and the vaccination rates are picking up Our survey finds that 71% of consumers, however, concern economy. Most anticipate that a and consumers are beginning to consumers now feel comfortable for economic health is greater. return to normal will be a gradual plan when they will feel ready in public, yet only a trickle are and cautious process even after to jump into normal life again. resuming the activities that keep Amid disrupted routines, many the virus has been subdued. our economy and communities consumers are taking solace in The light at the end of the running. more time spent with loved This month we debut a new tunnel couldn’t come at a framework to consider how ready They are eager to reconnect to ones, on hobbies and in the better time as we continue to different consumer segments are everyday moments like dining out outdoors. It is clear that while see the effects of the pandemic yet less excited to take bigger to return to normal. The four we crave a return to familiarity, on consumers’ mental health. leaps like attending a live event. Segments analyze differences in people have found silver linings. demographics, attitudes and Following Google’s Ad It’s clear that recovery may not shopping habits. Technology has been a driving announcement, we dive into mean returning to the way things force of our ‘new normal’ during And during Black History Month, consumer attitudes towards were, but instead adapting to a the pandemic and is playing consumers tell us they continue privacy. world where consumers are new, more positive roles in to expect brands to provide recovering at individual rates. consumers’ lives. ongoing support for racial equality in the US.
Recovery is not unfolding as linearly as our framework suggests Over the last three waves, consumers have been steadily shifting into the later stages of our Recovery Framework. Now, 60% of respondents identify as “Living a New Normal”, “Moving Into Recovery” or “Post-COVID Life.” However, the following report will show that while macro-trends of recovery are happening, the reality is much more nuanced. Asking Consumers to Self-Identify with The Stages of Crisis Response INITIAL SHOCK COMING TO GRIPS LIVING THE NEW NORMAL MOVING INTO RECOVERY POST-COVID LIFE Outbreak is spreading. Feeling Modifying daily routine. Many There has been progress to mitigate Fully reconnected to work and life Starting to settle into a new routine, confusion, fear or anger about how moments of frustration and anxiety, the outbreak in my community and without the threat of the outbreak adapting to the evolving crisis will impact my life focusing on what I can control the nation hanging over me JANUARY WAVE 15 23% 26% 30% 11% 10% FEBRAUARY WAVE 16 23% 26% 25% 14% 11% WAVE 17 MARCH 21% 23% 24% 21% 10% WAVE 18 18% 21% 26% 20% 14% APRIL
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Impulse Buying During the Pandemic 4. Mapping Financial Concerns: Consumer Recovery Segments
Consumers feel progress stall as COVID-19 case counts remain high From January through March, consumers’ outlook on the pandemic was increasingly optimistic. While consumers are still relatively optimistic compared to the beginning of the year, the momentum of progress has slowed – those who feel the pandemic is out of control or getting worse increased slightly since March. Consumer Outlook on the Trajectory of the Pandemic Out of control Getting worse, but controllable Getting better Under-control It's over January 34% 38% 16% 7% 5% February 26% 31% 30% 8% 4% March 16% 24% 45% 10% 4% April 18% 28% 40% 9% 5% +6 points - 5 points OOC/Getting Worse Getting Better Since March Q: Which of the following statements best describes how you feel about the trajectory of the pandemic in the US?
Health concerns persist at similar levels to March Over half of consumers are highly concerned (either extremely or very) about the health risks of the pandemic. This is comparable to March, but down from February when 66% of consumers were highly concerned. Concern Abouts Risks the Pandemic Poses to Their Health Extremely Concerned Very Concerned Somewhat Concerned Not at all Concerned 10% 10% 14% 14% 23% 24% 28% 30% 28% 30% 26% 26% 39% 36% 32% 30% January February March April Q: How concerned are you about the risks of the pandemic to your health?
In contrast, comfort out in public has soared to a record high A whopping 71% of respondents now feel either somewhat (42%) or totally (29%) comfortable going out in public – the highest level at any point during the pandemic and a 17-point increase. Consumer Comfort or Discomfort Going Out In Public Comfortable Uncomfortable 71% 56% 57% 56% 52% 54% 50% 44% 44% 46% 43% 48% 29% June August October January '21 February March April Q. In the context of COVID-19, how comfortable are you currently going out in public?
Trust in the vaccine is steady & vaccination rates are climbing fast Consumer trust in the COVID-19 vaccines has been holding fairly steady, with 72% of respondents either somewhat or completely likely to trust the vaccine. Those who report being vaccinated has jumped to from 27% to 42% in just one month. Levels Of Trust In COVID Vaccines When Consumers Plan to Get Vaccinated Completely trust it Somewhat trust it Jan. '21 Feb. Mar. April Hesitate to trust it Do not trust it 14% Already vaccinated 22% Jan. 27% 30% 37% 20% 13% 42% '21 29% Will be first in line 31% 27% 17% Feb. 44% 34% 11% 11% 30% Plan to wait and see whether it is safe 25% 24% 17% Mar. 39% 35% 16% 11% 9% Plan to be one of the last people 8% 9% 8% April 38% 34% 15% 13% 18% Do not plan on it 14% 13% 16% Q1: Considering everything you know about the roll out of the Pfizer and Moderna COVID-19 vaccines in the US, how much do you ‘trust’ the safety and efficacy of those vaccines? Q2: Once the COVID-19 vaccine is available to people like you (if it isn’t already), when will you be willing to get vaccinated?
However, vaccine progress may soon hit a slowdown While heartening to see that more people are getting vaccinated, the cohort most opposed to vaccinations – those who plan to be last or don’t plan to get it at all – is holding steady. And, as a percentage of those who have not yet received the vaccine, it is increasing dramatically. When Consumers Plan to Get Vaccinated – Among Those Who Have Not Received the Vaccine Yet Will be first in line Plan to wait and see whether it is safe Plan to be one of the last people Do not plan on it 40% 35% 37% 34% 32% 33% 29% 29% 28% 21% 18% 18% 14% 12% 10% 10% January '21 February March April Q: Once the COVID-19 vaccine is available to people like you (if it isn’t already), when will you be willing to get vaccinated?
Two-thirds of Americans say normal life is at least 6 months out One-third of consumers have either returned to normal life or expect to do so within the next 3 months. Another 46% expect to return to normal life within 6 to 9 months, while a full one-fifth say it will take 12 months or longer. Hearteningly, getting vaccinate does appear to speed up consumers’ expected timeframe. Expected Timeframe to Return to Normal Life Vaccinated Adults I already have Within 3 months Within 3 143i 12% months 21% 12 months Pro-Vaxxers That Haven’t Been Vaccinated or longer 21% Within 6 months 130i Within 6 Within 9 months Vaccine Adverse/Anti-Vaxxers months 29% 17% Already have 250i Q: Based on the news and your personal experiences, when do you think you will be able to return to your pre-pandemic life and routines?
Return with a boom? Or find comfort in regaining some normalcy? Many have questioned whether we will enter a ‘post-pandemic boom.’ Similar to the findings on the last slide, one-third of consumers plan to resume their pre-pandemic routines immediately, while two-thirds express a more cautious and gradual return to normalcy. How Quickly Consumers Plan to Resume Pre-Pandemic Routines 1/3 ready I will return to my normal life immediately 32% to jump in I will return to SOME aspects of normal life right 34% away but wait to return to others 2/3 more cautious & gradual I will wait to see whether it is truly safe before 23% resuming my normal life I am fairly content with life right now and plan to 11% continue many habits even after the pandemic is over Q: Once it is deemed safe by experts to return to your pre-pandemic life and routines, how quickly to you expect to pick things back up?
Engagement with out-of-home activities remains tempered Reinforcing a more staggered recovery…despite general comfort out in public, only a trickle of consumers are feeling more comfortable resuming specific activities compared to the beginning of the year. Consumer Comfort Level Doing Select Activities I don’t do this I do this but feel very uncomfortable I do this and feel somewhat uncomfortable I do this and feel fine *Change Grocery shopping 8% 18% 29% 46% +6 since January Exercising 27% 12% 17% 44% +6 2021 Health/Medical-related appointments 16% 17% 26% 41% +8 Non-grocery shopping 21% 18% 27% 35% +7 Socializing 26% 18% 26% 31% +6 Dining out 31% 16% 23% 30% +8 Working at my office/place of work 41% 12% 20% 27% +3 Attending beauty service establishmen... 40% 14% 20% 26% +7 Attending religious services 48% 13% 16% 24% +6 Domestic Travel 43% 15% 19% 23% +5 Sending kids to camp/school 55% 12% 17% 16% +2 Attending live events 56% 13% 15% 15% -2 International Travel 62% 14% 12% 12% +1 Q: Which of the following things, if any, do you currently do outside of the home and what is your level of comfort?
Vaccinated adults are slightly more comfortable out-of-home However, it is not a hugely dramatic shift. Those who are still waiting for the vaccine appear to be engaging with activities but are slightly less likely to feel completely comfortable doing so across the board. Consumer Comfort Level Doing Select Activities Vaccinated Respondents *Difference Pro-Vaxxers Not Yet Vaccinated *Difference to gen. pop. to gen. pop. Health/Medical-related appointments 9% 14% 27% 50% +9 Exercising 20% 19% 23% 38% -6 Grocer y shopping 7% 15% 30% 48% +2 Grocer y shopping 9% 24% 30% 37% -9 Exercising 28% 10% 15% 48% +2 Health/Medical-related appointments 15% 24% 29% 32% -9 Non-gr ocery shopping 22% 16% 27% 35% Non-gr ocery shopping 19% 22% 32% 28% -8 Dining out 33% 13% 21% 33% +3 Working at my office/place of work 29% 21% 25% 25% -2 Attending beauty service establishmen... 37% 12% 18% 33% +7 Socializing 22% 23% 30% 24% -7 Socializing 28% 15% 26% 30% Dining out 29% 23% 27% 21% -9 Working at my office/place of work 48% 8% 16% +4 28% +1 Attending religious services 36% 19% 25% 19% -5 Attending religious services 52% 12% 11% 26% +2 Attending beauty service establishmen... 35% 20% 28% 17% -9 Domestic Travel 47% 12% 18% 24% Domestic Travel 36% 21% 27% 16% -7 Attending live events 61% 9% 11% 19% +4 Sending kids to camp/school 41% 20% 24% 15% -1 Sending kids to camp/school 62% 9% 14% 16% Attending live events 44% 22% 23% 11% -4 Inter national T ravel 65% 10% 11% 15% +3 Inter national T ravel 49% 23% 17% 11% -1 Q: Which of the following things, if any, do you currently do outside of the home and what is your level of comfort?
Consumers eager to reconnect to everyday habits, less excited about ‘bigger’ events Interestingly, Americans most want to return to everyday habits such as socializing, going out to dinner, shopping in-store or traveling domestically, while ‘bigger’ and ‘special’ activities like live events and international travel garner less excitement. This is additional reinforcement that consumers will be cautious in their return to normal. Activities Consumers Will Do First Once It's Safe Again (respondents asked to select their top 3 choices) 57% 51% 41% 34% 34% 24% 21% 21% 18% See friends or Go out to dinner Enjoy being out in Shop in-store or at Travel Attend a live event Go to the gym Travel Attend a beauty family public in general a mall domestically (sports, concert, internationally service theater) establishment Q Once enough Americans are vaccinated and normal life becomes safe again, what activities will you most want to do first? Please select your top three choices.
Different generations are eager to reengage with different activities Boomers over-index for wanting to first see friands/family, go out to dinner and shop in-store once it’s safe to do so. Gen X is slightly more likely to first want to simply enjoy being out in public again and travel domestically, while Millennials are slightly more like to attend a live event and go to the gym. Gen Z over-indexes on first wanting to travel internationally. Activities Consumers Will Do First Once It's Safe Again – By Generation (respondents asked to select their top 3 choices) Boomers Gen X Millennials Gen Z 70% 65% 54% 51% 50% 49% 49% 46% 42% 43% 41% 39% 35%36% 34%35% 33% 32% 33% 28% 29% 28% 28% 27% 26% 24% 25% 22% 21% 22% 18% 16% 16%16% 10% 8% See friends or family Go out to dinner Enjoy being out in Shop in-store or at a Travel domestically Attend a live event Go to the gym Travel Attend a beauty public in general mall (sports, concert, internationally service theater) establishment Q Once enough Americans are vaccinated and normal life becomes safe again, what activities will you most want to do first? Please select your top three choices.
A majority of consumers plan to continue a variety of pandemic habits From cooking to online shopping to keeping a close group of friends/family, consumers are planning to increase time at- home even post-pandemic. When they do venture out, over half plan to pay contact-free, dine outdoors and wear masks. Likelihood to Continue Pandemic Routines Post-Pandemic Continue to do as frequently or more often Do less often 73% 67% 67% 63% 56% 55% 54% 52% 51% 51% 44% 37% 38% 37% 37% 28% 27% 25% 25% 25% 23% 23% 21% 20% 21% 21% 19% 19% Cooking a t h ome Shop online Spend time at Spend time only Stre am media on Wear masks/PPE Use cont actle ss Sit outdoors at a Exercise a t Video ch at Use curbside Work remotely Use teleme dicine Atten d a virtua l home wit h a close de man d pa yments rest aurant home/virtua l friends/family pick-up or event group of frie nds fitness cla ss de livery Q: Consider the following COVID-19 era customs. Once the pandemic is over, do you anticipate continuing to do them at the same or greater frequency or will you do them less often?
There has been little change in which habits consumers expect to continue since January, reinforcing confidence Respondents Who Will Continue Pandemic Routines “As Frequently or More Often” Post-Pandemic January April 72%73% 67%67% 67% 63% 63% 61% 60% 56% 56% 55% 54% 52%51% 52% 50%51% 48% 47% 46% 44% 41% 39%38% 37% 37% 35% Cooking a t h ome Shop online Spend time at Spend time only Stre am media on Use cont actle ss Exercise a t Video ch at Wear masks/PPE Sit outdoors at a Use curbside Use teleme dicine Work remotely Atten d a virtua l home wit h a close de man d pa yments home/virtua l friends/family rest aurant pick-up or event group of frie nds fitness cla ss de livery Q: Consider the following COVID-19 era customs. Once the pandemic is over, do you anticipate continuing to do them at the same or greater frequency or will you do them less often?
Consumers will not stop pandemic routines just because they got vaccinated In fact, vaccinated consumers are most likely to continue precautions like keeping a close group of friends, wearing masks and dining outside. We may see some shifts in behavior as younger Americans become vaccinated at increasing rates. Respondents Who Will Continue Pandemic Routines “As Frequently or More Often” Post-Pandemic – By Vaccination Status Vaccinated Adults Pro-Vaxxers Not Yet Vaccinated Vaccine Adverse/Anti-vaxxers 79% 74% 73% 73% 74% 67% 65% 63% 62% 62% 63% 61% 58% 59% 58% 55% 56% 56% 53% 53%52% 54% 54% 54% 49% 47% 46% 46% 44% 45% 44% 42% 41% 40% 39% 40% 38% 38% 33% 32% 25% 21% Cooking a t h ome Shop online Spend time at Spend time only Stre am media on Use cont actle ss Exercise a t Video ch at Wear masks/PPE Sit outdoors at a Use curbside Use teleme dicine Work remotely Atten d a virtua l home wit h a close de man d pa yments home/virtua l friends/family rest aurant pick-up or event group of frie nds fitness cla ss de livery Q: Consider the following COVID-19 era customs. Once the pandemic is over, do you anticipate continuing to do them at the same or greater frequency or will you do them less often?
Different generations expect different habits to stick Interestingly, the three older generations are more likely than Gen Z to say they will continue to shop online as frequently post-pandemic. Gen X and Millennials are most likely to continue tech-enhanced habits such as streaming media, using contactless payments, video chatting friends/family, using telemedicine, working remotely and attending virtual events. Gen Z appears eager to get back to ”real-life” and in-person activity, while Boomer are likely to continue a home-centered lifestyle. Respondents Who Will Continue Pandemic Routines “As Frequently or More Often” Post-Pandemic – By Vaccination Status Boomers Gen X Millennials Gen Z 84% 73% 73% 73% 71% 71% 70% 69% 68% 66% 65% 66% 65% 60% 60% 61% 61% 58% 59% 58% 55% 56% 54% 54% 53% 53% 54% 54% 53% 51% 50% 48% 49% 48% 49% 46% 47% 45% 45% 43% 42% 43% 43% 43% 40% 40% 41% 39% 39% 36% 36% 28% 24% 25% 16% 17% Cooking a t h ome Shop online Spend time at Spend time only Stre am media on Use cont actle ss Exercise a t Video ch at Wear masks/PPE Sit outdoors at a Use curbside Use teleme dicine Work remotely Atten d a virtua l home wit h a close de man d pa yments home/virtua l friends/family rest aurant pick-up or event group of frie nds fitness cla ss de livery Q: Consider the following COVID-19 era customs. Once the pandemic is over, do you anticipate continuing to do them at the same or greater frequency or will you do them less often?
Pent-up emotions are piling up as consumers struggle with a year+ of the pandemic With a light at the end of the tunnel in the US, a majority of consumers express feeling hopeful and grateful. However, the pandemic has stretched on for over one-year, and consumers are struggling with exhaustion, isolation, uncertainty and frustration. Emotional Sentiment - April ‘ 21 Strong: Hope, Gratitude Struggling: Exhaustion, Uncertainty, Isolation, Frustration Hopeful Fearful Motivated Exhausted Connected Isolated 22% 58% 42% 60% 40% 78% Grateful Angry Confident Uncertain Calm Frustrated 22% 37% 38% 78% 62% 63% Q: For each of the following pairs of emotions, please select the one that best describes how you currently feel right now.
Implications for Marketers • We’re entering the bumpy road to post-COVID recovery. Little about the trajectory of this pandemic has been linear, so it’s no surprise that recovery is multi-dimensional as well. Marketers are navigating recovery at the same time as everyone else – our survey finds that while optimistic, consumers acknowledge that they are not out of the woods. They are balancing an eagerness to find normalcy with continued health concerns and little consensus on what activities are safe. • Vaccinated adults are hopeful, but cautious. When comparing those who are vaccinated already to those who say they are likely to get vaccinated, vaccination gives consumers a sense of regaining normalcy. Vaccinated adults are engaging in slightly more out-of-home activity and plan to resume normal life the quickest. However, they are also the most likely to continue pandemic safety precautions such as wearing a mask or dining outdoors. • Recalibrating the home-body economy. During lockdowns, home became the center of all our activities out of necessity. Now, consumers have become fond of their home-bases – 67% plan to spend more time at home post- COVID. Additionally, 73% of respondents plan to continue cooking at home more often and 51% plan to exercise at home more often. While this by no means indicates the end of restaurants or gyms, it does suggest that home will be more multi-functional going forwards. And when consumers do reengage with the world, it may be on a much more local level – we see them most eager to engage with everyday activities. • Continued digital stickiness. Consumers intend to continue with many digital behaviors even after COVID-19 subsides. Two-thirds plan to shop online more often, 56% plan to stream on-demand media more often and half plan to video chat friends/family more often. While digital habits have been down in 2021 compared to 2020, they are still higher than before the pandemic began.
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Impulse Buying During the Pandemic 4. Mapping Financial Concerns: Consumer Recovery Segments
The pandemic is making consumers more cost sensitive Concern for the US economy remains high, with almost three-quarters of consumers expressing concern. Half of consumers are also concerned about their personal finances. This translates into 46% of consumers becoming more cost sensitive while shopping during the pandemic. Cost Sensitivity Due to the Pandemic 71% Of consumers are 52% Of consumers are 50% No change 46% MORE cost sensitive concerned about the concerned about their US Economy Personal Finances 4% LESS cost sensitive Q: Are you more or less sensitive to the cost of items when shopping now compared to before the COVID-19 pandemic?
While impulse buying has suffered, it has not disappeared While 43% of consumers say they are making fewer impulse purchases than normal during the pandemic, almost one-third of consumers say they are making more. In fact, half say they have made an impulse purchase in the past three months. Change In Impulse Buying During the Pandemic 30% SAME 43% LESS 52% Of consumers have made an impulse purchase in the past three months 27% MORE Q1: Have you made an “impulse purchase” in the past three months? Q2: Thinking about how often you made “impulse purchases” before the COVID-19 outbreak, how have your habits changed during the pandemic?
eCommerce has established itself as the most ‘impulsive’ channel Impulse buyers continue to make most purchases online and in-store, with eCommerce being the most frequented channel in both July 2020 and April. Those making more impulse purchases during the pandemic are more likely to shop online. Channels Where Impulse Purchases Bought Respondents asked to select all that apply More Making Impulsive MORE Pandemic Impulse Purchases Shopper July '20 April '21 62% Online/delivery 69% 61% 56% In-store 52% 53% 30% Curbside pickup 28% 24% 1% 1% Other 1% Q: Thinking about your recent impulse purchases, where did you purchase them? Please select all that apply.
Indulgence is the primary motivator behind recent impulse purchases 56% of Americans say they were motivated to treat themselves or others and 54% say they just wanted the item. Those making more impulse purchases during the pandemic report being significantly more motivated by stress or anxiety. Motivations for Making Impulse Purchases Respondents asked to select all that apply Total Making MORE Impulse Buys To treat myself or others 56% 51% I just wanted it 54% 58% To cope with stress or anxiety 35% 46% It was on sale 23% 25% I remembered I needed it 23% 26% Because of the stimulus money or recent financial 8% security 12% Other, please specify 1% 1% Q: hinking about any recent impulse purchases you have made, what motivated you to make those purchases? Please select all that apply.
Pandemic impulse purchases can include more pricey items In the past three months, almost one-third of consumers have spent $250+ on a single impulse purchase. While classic impulse categories like snacks, beverages and clothing & accessories are most common, consumers are also choosing unconventional items. Around a quarter of consumers have purchased electronics and home improvement/décor, one in five have purchased luxury items and 16% have purchased travel. Most Expensive Single Item Purchased In Past Three Months Categories Purchased On Impulse In Past Three Months Grocer ies/food 44% Snacks 36% Clothing & accessories 35% Beauty/Personal car e 28% $100-$249 Bever ages 27% Video games 26% $25-$99 Alcohol 25% Health & fitness 25% 26% $250-$499 Electronics/tech accessories (i.e. headphones) 24% 30% COVID-r elated PPE ( i.e. masks, hand sanitizer ) 24% Home improvement/decor 24% 12% Something for my pet 22% Entertainment (i.e. r ent a movie) 22% $10-$24 14% Toys & games 21% 10% Home/kitchen appliances 21% Bo oks/magazines 20% $0-$9 5% 5% $1,000+ Wellness products (i.e. vitamins, supplements) 20% Luxury items ( i.e. premium jewelry, handbags) 20% Something for my kid 19% Travel/a vacation 16% Automo tive 15% Li ve event tickets 13% Other, please specify 1% Q1: What was the cost of the most expensive item you recently purchased on impulse? Q2: Which of the following types of impulse purc 100%
Different motivations lead to different types of impulse purchases Money-motivated (stimulus-flush) impulse shoppers over-index for buying superfluous categories, including video games, luxury and automotive. Need-motivated shoppers are more likely to purchase practical items such as groceries, snacks, health & fitness and home appliances. Stress and indulgence-motivated shoppers didn’t over-index for any category but instead lean into all categories to satisfy their impulses. Motivation-Driven Shoppers - Select Purchase Categories Money motivated Need motivated Stress motivated Indulgence motivated 64% 54% 54% 49% 45% 46% 45% 44% 43% 40% 41% 40% 39% 39% 39% 39% 39% 39% 37% 39% 37% 37% 38% 35% 35% 34% 33% 30% 30% 30% 31% 30% 28% 29% 25% 27% 27% 27% 25% 25% 25% 26% 25% 22% 22% 23% 20% 21% 21% 15% 15% 16% Grocer ies/food Clothing/accessories Snacks Beauty/per sonal car e Video games Health & fitness Electronics Entertainment Home/kitchen Luxury Automotive Live event tickets Travel appliances Q: Which of the following types of impulse purchases have you made in the past three months? Please select all that apply.
Implications for Marketers • Marketers must recreate the impulse buying experience online. Throughout the pandemic, consumers turned to eCommerce to shop safely. In that transition, consumers also started making impulse purchases – typically restricted to the check-out aisle of a store – online as well. With eCommerce now established as an impulse purchase channel, it’s crucial that marketers invest in their online and mobile experience to encourage unplanned purchases. • Impulse purchase motivations are shifting during the pandemic. With everything that is going on in the world right now, people are wanting to spend money on the things that can bring some joy or happiness. Over one- third of consumers have made an impulse purchase to cope with stress, rising to 46% among those making more impulse purchases. • The definition of “impulse purchase” is changing. If in-store was the traditional channel for impulse purchases, the traditional definition was a small indulgence – gum, chapstick, a particularly tempting candy bar. The pandemic has shifted that definition. Despite the fact that 46% of consumers say they are more cost-sensitive compared to before the pandemic, almost 30% estimate they have spent $250+ on a single impulse purchase. Indulgence motivated and home-bound consumers now categorize luxury handbags, kitchen appliances and even cars as impulse purchases. This expanded definition opens the door for more marketers to play in the space.
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Impulse Buying During the Pandemic 4. Mapping Financial Concerns: Consumer Recovery Segments
Mapping Consumer Financial Security to Health Concerns LOW CONCERN FOR HEALTH RISKS Squeezed Set-to-Go LOW CONCERN FOR FINANCES HIGH CONCERN FOR FINANCES 10% 34% of respondents of respondents Strained Sheltering 42% 14% of respondents of respondents HIGH CONCERN FOR HEALTH RISKS
Overview: Consumer Recovery Segments Full profiles in the appendix. SQUEEZED SET-TO-GO Heavy Digital Active Habits Comfortable in public Comfortable in public Normal ads Business as normal GEN Z/ MILLENNIALS MILLENNIALS & BOOMERS Increase spend on dining Increase spend on & entertainment health & fitness STRAINED SHELTERING Heavy Internet & Social Media On-the-Go Habits Anticipating long-haul Likely frontline or essential workers Portray pandemic life in ads Products/services that GEN X/ improve wellbeing PARENTS BOOMERS+ Connected, at-home habits Increase spend on necessities
What They Plan to Do First Once Safe SQUEEZED SET-TO-GO Over-index on: Over-index on: Travel Attend live Go out to dinner Travel Shop in-store or Go out to dinner internationally events domestically at the mall STRAINED SHELTERING Over-index on: Over-index on: Attend live Go to the gym Travel domestically See Go out to dinner Enjoy time in events friends/family public
The economic toll of the pandemic has been unequal, yet across the board consumers have become more cost sensitive 45% Of SQUEEZED consumers are 27% Of SET TO GO consumers are more cost sensitive during the more cost sensitive during the pandemic pandemic 66% 34% Of SHELTERING consumers are Of STRAINED consumers are more cost sensitive during the more cost sensitive during the pandemic pandemic
Implications for Marketers • Personal health and financial security will dictate shifts in behavior and mindset. While there will be macro changes to consumers’ behaviors and spending as the pandemic evolves in 2021, many will be making decisions based on their personal circumstances. Behaviors will diverge along the lines of fear and desire. • Sheltering: This group is looking to be uplifted and is relying more heavily on media to stay connected as they shelter in place. Focus on bringing your brand to consumers by integrating into at-home entertainment, fitness, education and work habits. Relate to their situation by reflecting pandemic life in ads. • Strained: They are waiting on experts to signal that it’s safe to resume the activities they love. Many have reduced their media footprint as they’ve been forced back to work. They are looking for support from brands and likely need some uplifting. • Squeezed: They are feeling comfortable out in public and are resuming activities like dining and travel. When their budget constricts them, they turn to a variety of media channels to fill their entertainment needs. Brands should offer discounts and new experiences to engage them. • Set-to-Go: Open to resuming activities (though still mindful of safety), this group is ready to be welcomed back by brands. Marketers can appeal to them through normal communications or offer safely modified versions of everyday experiences.
APPENDIX
Sheltering Financially secure, yet highly concerned about the pandemic’s health risks, this group is staying home. ROUTINES SPENDING BRAND EXPECTATIONS They exhibit a high level of Less likely than other groups to They want brands to put people first concern about the pandemic: increase spending. Those that do and offer pandemic-friendly shopping: plan to spend more will continue to • 65% believe the pandemic is Brands Should Respond to the Crisis By: spend on in-home necessities and getting worse or out of control • Keeping employees safe/paid (70%, activities: More likely to be: (114i) 113i) Spending MORE on over next 3 • Boomers+ (43%, 159i) months: • Keeping customers safe (66%, 114i) They are anticipating a long-haul ahead and a cautious return: 1. Groceries (37%) • Offering new ways to shop (45%, • Or Millennials (27%), Gen X (24%) 125i) 2. Household goods (37%) • 63% are uneasy in public (121i) 3. Personal care (36%) • Mix of Urban (43%), Suburban (37%), • Offering discounts (45%, 129i) • 43% (134i) plan to be first in line 4. Entertainment (32%) Rural (20%) to get vaccinated (15% have 5. Health & Fitness (30%) • White (72%), Asian (10%), Black been vaccinated already) They want to see pandemic life (15%), Hispanic (16%) reflected • 38% say normal is at least 12 months out, or longer (152i) • Show how products/services help • Small HH, not parents: 61% have
Strained Both concerned about their personal finances and the pandemic, this cohort is stressed on two angles ROUTINES SPENDING BRAND EXPECTATIONS Data suggests they are likely They are reducing trips to the They want brands to show frontline or essential workers store and stocking up to their support for people and who must continue normal providing for larger families: communities routines despite discomfort: • 88% tend to stock their Brands Should Respond to the More likely to be: • 75% are actively employed Crisis By: homes with more necessities (117i) • Gen X (37%, 137i) than they immediately need • Keeping employees • 30% have already been (114i) safe/paid (63%, 102i) • Or Millennials (40%), Boomers vaccinated (136i) Most plan to increase spend on • Supporting local (17%) • 59% are uneasy in public (113i), necessities, perhaps ramping up community (50%, 100i) with 22% of those citing “total after period of budgeting • Urban (61%, 117i) discomfort” (138i) • Committing to social Spending MORE on over next 3 justice initiatives (27%, • White (73%), Black (16%), Hispanic • 29% (126i) say they have months: 100i) (18%) already returned to their 1. Household goods (69%) • Helping me and others normal routines, 27% (117i) say • Larger HH, parents: 49% have
Squeezed This group is more concerned about their financial situation than they are about the pandemic ROUTINES SPENDING BRAND EXPECTATIONS This cohort is more comfortable Despite a limited budget, they They want brands to offer safe. in public than the average are excited to spend more on easy and convenient ways to shop American and eager to resume out-of-home experiences like Brands Should Respond to the Crisis life fully: restaurants and entertainment: By: More likely to be: • 58% believe the pandemic is Spending MORE on over next 3 • Keeping employees safe/paid • Gen Z/Millennial (53%, 118i) getting better or is already months: (65%, 105i) under control (135i) 1. Groceries (46%) • Offering new ways to shop (44%, • Or Boomers+ (31%) • 54% are currently comfortable 2. Household goods (46%) 125i) in public (110i) • Rural (23%, 144i) or Urban (51%) 3. Restaurants/Take-out • Offering discounts (43%, 119i) • 29% (126i) say they have (42%) • Hispanic (26%), Black (20%), already returned to their normal 4. Personal Care (41%) …and they want to see how White (68%) routines, 27% (117i) say they 5. Entertainment (40%) brands are supporting expect to within 3 months communities • Smaller HH, not parents: 55% have • 45% say they will return to their • Supporting local community
Set-to-Go Neither concerned about finances or the pandemic, this group has been minimally challenged BRAND ROUTINES SPENDING EXPECTATIONS Despite comfort in public, this group Less likely than other groups to feels less urgency around returning Return to BAU, while offering increase spending. Those that do to normal life perhaps because they plan to spend more will spend new way to shop and save More likely to be: aren’t as stressed: on health, restaurants and Brands Should Respond to the • 71% believe the pandemic is entertainment. Crisis By: • Millennial (37%, 100) or Boomers (32%, 128i) getting better or is already under Spending MORE on over next 3 • Offering new ways to shop control (165i) months: (39%, 109i) • With some Gen X (16%) and Gen Z • 69% are currently comfortable in (11%) 1. Groceries (35%) • Offering discounts (40%, 111i) public (141i) 2. Health & Fitness (34%) • Show how products/services • Suburban (40%, 125i) or Urban (43%) • But only 20% (87i) say they have 3. Restaurants/Take-out(32%) already returned to their normal help improve consumer’s 4. Household goods (31%) comfort, happiness or • White (72%), Asian (11%), Hispanic routines, with another 20% (87i) 5. Entertainment (31%) (18%) or Black. (12%) expecting to within 3 months wellbeing (35%, 109i) • Only 34% say they will return to • Advertise as normal (23%, • Smaller HH, not parents: 60% have
Media Consumption Habits ONLINE SOCIAL MOBILE PC TRAD. TV OTT GAMING AUDIO OOH VIDEO MEDIA INTERNET INTERNET SHELTERING Heavy internet & M M/H M H H H L L/M L social media users STRAINED On-the-go: Heavy M M/H M M/H H M M L M mobile internet SQUEEZED Younger: Heavy M H M/H H H H M/H M L/M digital usage SET-TO-GO Active: Heavy M M/H L/M M/H H M L L/M L mobile internet
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