Wednesday, Nov. 18
Posted 3 p.m. EST
The holidays are just around the corner. And marketers and advertisers are scrambling for opportunities to get their messages across to recession-weary consumers.
Financial services firm Country Financial just released a survey that found 61 percent of Americans were adversely impacted by the recession. It concludes that many consumers plan to eschew debt and save and invest more, which is good news both for the financial industry and for consumers.
But other marketers just want to know when consumers will resume their spendthrift ways. Marketing strategy and research firm Decitica released a study titled "Marketing to the Post-Recession Consumers," and finds that consumers have been profoundly affected by the recession. According to the study, "The trillion dollar question remains: When will the American consumer loosen the reins on restraint and ratchet up spending to meaningful levels?"
4 types of consumers
The study divides the consumer population into four categories: steadfast frugalists (20 percent) who embrace self-restraint with "unequivocal enthusiasm;" involuntary penny-pinchers (29 percent) who grudgingly adopt thrift out of necessity; pragmatic spenders (29 percent) who have cut back their spending though they have the financial wherewithal to revert to pre-recessionary behaviors; and apathetic materialists (22 percent) who have not changed their spending habits.Baby boomers are well represented in all categories except the apathetic materialists, which consist mostly of the youthful millennials and Gen X.
Of the steadfast frugalists, Val Srinivas, principal at Decitica, says, "Marketers will find this group to be the most challenging, as they are the least brand loyal and most likely to discount marketing messages." The involuntary penny-pinchers also represent a challenge to marketers because they just don't have money to spend. Pragmatic spenders and apathetic materialists give marketers the most hope.
"The smartest people in the world are in the marketing and advertising industries in this country," says Thomas J. Stanley, author of "Stop Acting Rich … and Start Living like a Real Millionaire" in a recent Spotlight interview with Bankrate. "How else can you explain that 300 different brands of vodka coexist in our domestic market?"
Forewarned is forearmed
So now you know there really is a national conspiracy to get you to part with your money. Your mission, if you choose to accept it, is to deflect the marketing artillery and maintain financial self-preservation.Pay more attention to what credit counseling firms have to say. The National Foundation for Credit Counseling came up with a holiday spending quiz for consumers to take before they head to the malls. If you answer "true" to two or more statements, you really should not go on a shopping spree.
- There are arguments in my home about money.
- I sometimes hide my purchases.
- I have thought about filing for bankruptcy.
- I struggle to make my mortgage payment.
- I sometimes pay my bills late.
- I have used more than 30 percent of my available credit lines.
- My debt interferes with my sleep, job or home life.
- I have little or no savings.
- I am receiving collection calls or notices.
- If I lost my job, it would mean an immediate financial crisis in my life.
Take Charge America, another nonprofit credit counseling and debt management agency, offers these tips to ease the financial burden of the holidays.
- Agree to spending limits of $10, $20 or $50 with family or friends.
- Tell younger kids the true meaning of the season, and that expensive gifts are not what it's about.
- Start new traditions that don't focus on gift exchanges.
- Reuse old holiday decorations or make new ones using simple materials like pine cones and glitter.
- Host a party, but ask your guests to bring beverages and a dish.
- Create a budget, plan purchases, comparison shop.
Questions? Comments? E-mail boomerbucks@bankrate.com.