Gas Prices Still Have Strong Influence on Consumers' Shopping Behavior
TNS survey shows, one-third of consumers more likely to buy private-label brands to save money
NEW YORK, July 6, 2011 /PRNewswire/ -- More consumers are taking steps to compensate for rising gas prices, as nearly eighty percent (80%) of consumers say they will alter their purchase behavior, this according to recent research conducted by TNS, a world leader in market information.
Burdened by strong gas prices and a sluggish economy, consumers are looking at ways to cut their spending, starting with their monthly grocery bill. Thirty-five (35%) percent of those surveyed say they are trimming down and removing items from their "typical" grocery list to save money. "Shoppers are careful and watchful of their money and given the overall level of uncertainty about the economy, it's not a surprise to us to see consumers reign in their spending on groceries," said Dan Boehm, Senior Vice President at TNS.
But, it's not simply a matter of removing items from a given grocery list. Consumers are also paying close attention to what they're buying. According to the survey, nearly one-third of consumers (30%) are more likely to purchase private label brands than national brands. "For their money, consumers are increasingly seeing an equal or greater value of purchasing more private-label brands," said Boehm. "This is a great opportunity for marketers to communicate why their brands are superior. They should continue to make being visible in the store a priority."
As they pay more at the pump and consolidate their shopping lists, consumers are making fewer trips and often choosing to shop at discount stores (32%) over traditional retail outlets. "Even as gas prices have receded a little from their peak, our research shows consumers are adjusting their grocery shopping patterns to manage a more uncertain conservative purchase environment," said Boehm "More than ever, grocery retailers need to clearly articulate the value proposition they give their shoppers as shoppers make fewer trips per week, buy less and look for discounts."
TNS is the global leader in custom market research delivering actionable insights and research-based business advice to clients around the globe so they can make more effective business decisions. TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specializing in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research. Delivering best-in-class service across more than 80 countries, TNS is dedicated to discovering growth opportunities for its clients in an ever-changing world. Through its pioneering and innovative culture, TNS understands the latest marketing challenges and research techniques, being the first to discover and solve new marketing issues for clients.
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