Reduced Advertising During Recession Negatively Impacts Consumer Perception
Posted by Jami on May 20, 2009
From Print in the Mix:
More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. Likewise, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business.
The Ad-ology Research study, “Advertising’s Impact in a Soft Economy,” analyzes consumer perception about businesses that continue to advertise, and those that do not, in the current economy.
The study finds advertising appears to play a key role in consumers’ view of how a business is doing, and by not advertising, businesses may be sending a warning signal to current and potential customers.
Other key findings:
- TV, newspaper, direct mail, and Internet are the top four media from which consumers saw/heard an ad within the last 30 days that led them to take action
- 40% of consumers use coupons more now than a year ago
Most consumers are as willing or more willing to pay more for ‘healthy’ or ‘organic’ products than they were a year ago - A ‘deeply discounted price’ was the number-one factor that would make consumers more likely to purchase a big-ticket item (+$1,000)
- Store Web sites ranked second only to search engines as the way consumers research products and shop online.
