Consumption smoothing refers to an individual’s preference to maintain a certain standard of living over time. All things constant this means an individual will use savings as a tool to compensate when incomes are low or save more when incomes are high thus “smoothing” their consumption patterns. With consumer confidence on a knife edge and the squeeze on credit liquidity, the Retail sector is bracing itself for a turbulent period in 2009. Contact Arcus for a presentation on how North American retailers are preparing for the slow down
Innovative ideas from European and US markets to engage customers
Strategies to strengthen customer loyalty in a slowing economy
Learn about Consumption Smoothing and Goods Substitution
Consumption smoothing refers to an individual’s preference to maintain a certain standard of living over time. All things constant this means an individual will use savings as a tool to compensate when incomes are low or save more when incomes are high thus “smoothing” their consumption patterns. This doesn’t mean that spending doesn’t increase or decrease as incomes levels change, but rather that the peaks and valley’s will be less dramatic.
The Arcus study examines how customer attitudes affect specific retail categories. From home improvement to groceries and apparel to appliances, the Arcus Study helps marketers discover best practices to engage customers with specific tactics that are most likely to lead to specific shopping behaviours.
Concern about the economy is running high in the country today, but people are notorious for espousing pro-shopping attitudes and intentions that never translate into changes in shopping behaviour or purchasing patterns. The Arcus Retail Best Practices Study examines this disconnect and explores the impact of the current economic environment in the marketplace in context of retailers marketing challenges.
Areas covered in the report:
Present State: The Arcus Retail Best Practices Study assesses the extent to which consumers choose brands based on their perception of economic conditions and a company’s corporate and brand image.
Future State: Retailers like to think that consumers have an excellent grasp of issues related to the environment and hence focus on more sophisticated retail campaigns. But most people understand it as an abstract issue. Understanding the challenge in context of your retail brand’s current state is critical.
Planning: Those passionate about the brands they buy tend to have higher incomes and are more likely to live in larger cities. Find out about best practices in retail marketing in Canada, the US and Europe. Learn about new strategies that could help you engage your customers and strengthen brand loyalty.