Talk to Clark 1-4pm ET: (877) 87-CLARK or (404) 872-0750
advertisement
Looking for something on the site? Search for it here! Also see Clark's Greatest Hits
Jan 28, 2009 -- Consumers becoming shifters with no brand or store loyalty
A recent IBM survey of 30,000 people uncovered several trends that speak to the dawn of a new day in consumerism.
Some 90% of those polled are changing what they spend to some degree. That may seem like a no-brainer to many of you. Consider, however, that 90% of the general population is not facing hard times. What's happened is that our psychology has shifted to a place where we're all worried and feeling pinched even if we're not in reality.
The biggest revelation from the IBM survey is that 30% of those polled have become what are called "shifters." That means they have absolutely no store or brand loyalty; they just want the most for their money wherever they can get it. Of course, that also means 70% are still brand and store loyal, but the best deals will obviously flow to the 30%.
One final thought: Just because we're facing tough times, it doesn't mean that things will always be this way. That kind of belief -- that our economy will just keep going further down -- is called "inertia bias" in psychology and economics. But it's not true.
So it's not a question of "if" the economy will recover -- it's a question of "when."
Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.
Avg. rating: N/A
What others are saying
Seriously
I'm slightly annoyed but more entertained at this so called study IBM has done--as if it were some 'public service announcement' to assist the economy.
NEW YORK, NY--(Marketwire - January 12, 2009) - NRF Annual Convention & EXPO 2009 -- IBM (NYSE: IBM) today announced the IBM Retail Performance Analytics (RPA), a "quick start" portfolio of solutions designed to enable retailers to analyze and apply data to business processes to help them take costs out of their businesses and drive revenue.
On January 26, 2009 this was published in the Journal: An IBM spokesman acknowledges that layoffs are underway but declined to comment on the number of cuts. An “Employee Information Package” sent to affected workers last week listed 2,850 positions, without specifying names.
Now don't quote me on this one but sources claim that they plan on laying off over 16,000 employees this year(I did not work there). When the IBM web site states "IBM Application Management Services can provide retailers with cost reductions of up to 40%, improve ROI and support operational adaptability and responsiveness" I have to chuckle that perhaps IBM should get a "best spin" award for turning their own lemon-offs into lemonade ...
Who's Irresponsible?
Buzz Gee, is the irresponsibility placed on the evil banks and idiotic government only? It takes two parties with regards to borrowing and lending: one to borrow and one to lend. It took irresponsible borrowers to make irresponsible lenders.
Economy
Do not listen to the labile, sensationalist,liberal media...this is not the end of the world. Things are great where we are (in Dallas) and no, we didn't qualify for one of those bs 'rebate' checks. Since our income is made in the financial industry, we should be have been happy about that bailout, right? Nope, made my heart sink. Paulson is a crook.
Economy
Anon, I can't agree with you more, if they are not going to be loyal and fair to me, why in the world would I be loyal to them. I was born in the morning, but not this morning.
ECONOMY
MY WIFE AND I ARE RETIRED. WE HAVE NOT CHANGED OUR SPENDING HABITS. OUR INCOME WITHOUT USING SAVINGS EXCEEDS OUR EXPENSES. WE FEEL BLESSED. HOWEVER WE DID WORK AT GETTING TO THIS POSITION. WE HAVE NEVER HAD A BRAND LOYALTY. WE SHOP ON PERCIEVED VALUE NOT JUST PRICE. THE BOTTOM LINE IS WE HAVE ALWAYS BEEN FRUGAL SO WE HAVE NOT HAD TO CHANGE SPENDING.
Economy
Yes, Clark, the economy will eventually rebound. But given the miserable condition of our banks, it could be many years before we see a rebound. And when we do finally see a rebound, it will be accompanied by hyper-inflation. That is the price we will have to pay for irresponsible bank lending followed by irresponsible gov't spending. There is no easy way out of this swamp.
Loyalty
Well there's been a shift in how personal businesses are and how they treat their customers. In the past 10-15 years alone we've moved from Mom&Pop shops and more personal service to the age of technology where people are checking their cells and PDAs all the time, feeling rushed, and insisting on quickness over quality of service. To a certain extent, it has been natural, but it's no excuse for the service you find at the average store. People are less loyal because businesses are less loyal to people.
