Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021

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Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
Taking the Pulse |
COVID-19 Recovery
Navigator
Wave 18

April 2021
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
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)
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Impulse Buying During the Pandemic

4. Mapping Financial Concerns: Consumer Recovery
  Segments
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Impulse Buying During the Pandemic

4. Mapping Financial Concerns: Consumer Recovery
  Segments
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
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
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
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.
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
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
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Impulse Buying During the Pandemic

4. Mapping Financial Concerns: Consumer Recovery
  Segments
Taking the Pulse | COVID-19 Recovery Navigator - Wave 18 April 2021
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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