How the Current Economy Has Changed Consumer Behaviors

Since the economy began its downward spiral into recession in early 2008, we have seen changes in consumer behaviors and habits. Studies have shown that mindsets have shifted and that the current consumer is a very different person than the consumer of several years ago. Many marketing research services have begun to create their own surveys and reports to gain insight into this new consumer that we are dealing with today.

What most marketing research services begin with is an analysis of consumer behaviors – what are the top drivers of purchase decision making? Are people considering their purchase decisions with more thought to the future consequences? What are people buying more of? Less of? These questions and more can produce an effective study with meaningful results.

So far, various market research services have discovered that durability is a key propeller of consumers’ purchase decision making. This suggests that consumers are looking to the future and considering the long term implications to their current purchasing actions. It means that consumers believe the economic recession is here to stay, at least for a while. Consumers expect spending levels to remain at these reduced levels indefinitely, and they are making their decisions accordingly. A study that questioned consumers regarding their top reasons for buying a product produced the following results: the top three reasons for buying a product are 1) it is durable and will last for a long time; 2) the product will make the consumer’s life easier; and 3) it is something the consumer has always wanted to have.

In another study by a marketing research services company, questions deconstructed what purchases and experiences people miss the most since the economic downturn. The questions posed elicited four main responses: 1) 24 of respondents said they miss dining out in restaurants (including fast food restaurants); 2) 15 said they miss traveling and taking vacations; 3) 14 said they miss buying apparel (clothes and shoes) that they used to purchase; and 4) 10 said they miss the ability to buy something on a whim, and the freedom to buy whatever they want without having to worry about the future. Sentiments like these will likely lead to an increasing desire for these more luxury items and behaviors, and eventually will bring forth increased spending. It is uncertain when this increased spending will begin, but it is clear that it will happen eventually.

Market research services have pressed consumers for more information regarding their opinions of luxury goods. We’ve found that after consumers made attempts to forgo luxury items, they realized that it is not too difficult to go without these goods; many consumers say now that their current budgets reflect the fact that luxury items seem unnecessary to them now. Out of people who declared that they are on a permanently stricter budget with respect to luxury goods, 42 of them said the reason is because they no longer feel a need to have these luxury items.

In fact, the definition of luxury seems to have changed. In one market research services study, consumers declared that small splurges are now luxuries to them: they feel guilt over eating out (even if it’s inexpensive) or buying an item at full price. In the past, luxury items were more extravagant: expensive cars, high tech electronics, and fancy clothes. Consumers indicate that they, in fact, do not want to be associated with these big ticket displays of wealth.

The recession has brought about a fundamental shift in the way people view happiness. Consumers now say that the things they want most in life are not material, but emotional. People want to be happy and spend time with family and friends. One survey reveals that the top indicators of success (according to the consumers surveyed) are 1) being able to have dinner with family often; and 2) being able to exercise every day.

From these survey results and from the current state of the economy, it is clear that the current American consumer is very different now than he or she was several years ago. As the definition of luxury changes, producers must adapt their products and marketing strategies to fit the current spending conditions. In the next few months and years we will experience changes (some lasting, some temporary) in the market and economy. As these changes evolve, market research will be crucial to determining successful strategies for producers.

About the Author: Rachel Bonsignore is Associate Director of The Omnibus Company. The Omnibus Company, a division of Kelton Research, provides fast and accurate http://www.omnibus.com/ market research services and http://www.omnibus.com/ marketing research services to public relations and marketing professionals looking for newsworthy, actionable data.

Article Source: ActiveAuthors.com

Mobile Phone Shipments Rebound To Double-Digit Growth in Fourth Quarter, According to IDC

The worldwide mobile phone market grew 11.3% in the fourth quarter of 2009 (4Q09), ending five consecutive quarters of retrenchment. According to IDC's Worldwide Mobile Phone Tracker, vendors shipped 325.3 million units in 4Q09 compared to 292.4 million units in the fourth quarter of 2008. Vendors shipped a total of 1.13 billion units on a cumulative worldwide basis in 2009, down 5.2% from the 1.19 billion units shipped in 2008.

"The mobile phone market has rebounded in dramatic fashion," said Kevin Restivo, senior research analyst with IDC's Mobile Phone Tracker. "The Asia/Pacific region and the United States were primarily responsible for pushing the market back into growth territory. Overall, vendors offered a wide array of converged mobile devices (smartphones) and messaging devices in the seasonally strong fourth quarter, to take advantage of increased user demand."

"One area of the market that has consistently shown growth all year is the converged mobile device market," said Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "Consumer tastes for mobile phones have increasingly shifted from simple voice telephony to greater data usage, and both handset vendors and carriers have been eager to meet demand despite ongoing economic challenges. IDC believes that the converged mobile device market grew nearly 30% year over year, and that the market will continue to gain momentum as device selection increases and price decreases continue into 2010 and beyond."

Market Outlook

IDC anticipates that the worldwide mobile phone market will rebound in 2010. "In 2009, the mobile phone market, like many others, contracted due to economic pressures. But as the year progressed, demand for mobile phones increased each quarter while year-over-year declines progressively decreased," adds Llamas. "Economic recovery mixed with pent-up demand will create positive conditions for handset vendors in both developed and emerging markets in 2010. Meanwhile, key handset vendors expect to exceed their 2009 shipment levels with refreshed portfolios, leveraging interest in touchscreens, messaging devices, and converged mobile devices."

Regional Analysis

• In Asia/Pacific (excluding Japan), 2009 as a whole was relatively flat year on year, marked by a stronger preference for low-cost handsets in China and India as users substituted away from more expensive options under recessionary pressure. However, the Asia/Pacific market saw strong gains in 4Q09, reflecting a strong start to recovery. Touchscreen-enabled devices remained a hot segment of the market, helping to drive the demand for converged mobile devices across the region.

• The Western European handset market grew on both a year-over-year and sequential basis in 4Q09. LG Electronics and Samsung performed particularly well thanks to their collective strength in the traditional mobile phones segment while Apple, Nokia, and Research In Motion helped sustain growth in the converged mobile device market. On a full-year basis, however, shipments into the region still declined as the improved second-half performance was not enough to offset the declines in the first half. In CEMA (Central and Eastern Europe, Middle East, and Africa), vendors found pockets of improvement during 4Q09, but overall sales in the region were focused on entry-level handsets targeted at first-time users.

• The North American market finished 2009 relatively strong posting the second-highest regional growth after the Asia/Pacific region (excluding Japan). Converged mobile devices remained in high demand in the fourth quarter due to a combination of lower priced devices and rate plans as well as greater user and carrier interest. However, feature phones accounted for the majority of shipments last year despite an overall volume decrease on a year-over-year basis. In Canada, mobile phone shipment volumes were buoyed by the introduction of a new wireless network, which increased the demand for smartphones, particularly the Apple iPhone.

• The Latin American mobile phone market shrunk in the fourth quarter. However, the performance marked an improvement from the double-digit declines posted in previous quarters. Stronger Brazilian currency pushed prices for mobile phone imports lower, spurring greater demand. In Argentina, channel partners purchased additional product ahead of a new tax rate that came into effect in December. Finally, the popularity of pre-paid service options across the regions included more converged mobile devices, stoking greater demand from vendors.

Top Five Mobile Phone Vendors

Nokia ended the year with a strong fourth quarter performance. Shipments of 126.9 million in 4Q09 represented the company's highest quarterly total in two years (since 4Q07). The higher handset figures were boosted by improved smartphone sales. Nokia introduced a number of new smartphone models, including the X6, to various markets. When its handset shipment performance is measured on an annual basis, however, Nokia shipped fewer devices in 2009 than in each of the last two years.

Samsung bested its single quarter record in 3Q09 by shipping 68.8 million units in 4Q09. The company capitalized on growing interest in converged mobile devices with its Omnia2 while addressing end-user demand for touchscreen and quick-messaging devices within developed markets. In emerging markets, Samsung's attention to local market tastes and extended distribution channels helped build its presence. Despite its heady growth, the company fell further behind market leader Nokia while distancing itself ahead of LG Electronics.

LG Electronics followed last quarter's record-breaking shipment volume with a new record, reaching 33.9 million units in 4Q09. However, operating margins took a sharp drop from 8.4% in 3Q09 to 1.3% in 4Q09, reflecting average selling price declines, higher marketing expenses, and channel expansion within emerging markets. Still, the company continues to reap success from its popular enV and Cookie products while building its converged mobile device portfolio with the Android-powered GW620 and GW880 and Windows Mobile-powered GW820.

Sony Ericsson posted its sixth consecutive quarterly loss this month. However, the joint venture's gross margins rose to 23% from 15% on a year-over-year basis, thanks to sales of new higher-margin mobiles. The vendor's sales of 14.6 million handsets represented its highest shipment figure of the year thanks to the introduction of new models such as the Satio and Aino. It also announced the Xperia X10 and Vivaz models that the company says will be released later this year.

Motorola ended 2009 with mixed results. The company posted its 12th consecutive quarter of year-over-year shipment declines, but also reported its lowest year-over-year decline since the first half of 2008. Moreover, Motorola recorded an operating loss of $132 million, a reduction of nearly 80% from 4Q08 levels. In its first quarter, Motorola demonstrated how Android has become a key component of its product portfolio, shipping 2 million units worldwide. Its DROID and CLIQ/DEXT devices were shipped to more than 20 countries. It also recently announced the BACKFLIP, MOTOROI, MT710, and the XT800 models, which are slated for release later in the year.

Top Five Mobile Phone Vendors, Shipments, and Market Share, Q4 2009 (Units in Millions)

Vendor	4Q09 Shipment Volumes	4Q09 Market Share	4Q08 Shipment Volumes	4Q08 Market Share	4Q09/4Q08 Growth
1. Nokia	126.9	39.0%	113.1	38.7%	12.2%
2. Samsung	68.8	21.1%	52.8	18.1%	30.3%
3. LG	33.9	10.4%	25.7	8.8%	31.9%
4. Sony Ericsson	14.6	4.5%	24.2	8.3%	-39.7%
5. Motorola	12.0	3.7%	19.2	6.6%	-37.5%
Others	69.1	21.2%	57.4	19.6%	20.4%
Total	325.3	100.0%	292.4	100.0%	11.3%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 28, 2009

Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

Top Five Mobile Phone Vendors, Shipments, and Market Share, 2009 (Units in Millions)

Vendor	2009 Shipment Volumes	2009 Market Share	2008 Shipment Volumes	2008 Market Share	2009/2008 Growth
1. Nokia	431.8	38.3%	468.4	39.4%	-7.8%
2. Samsung	227.2	20.1%	196.6	16.5%	15.6%
3. LG	117.9	10.5%	100.8	8.5%	17.0%
4. Sony Ericsson	57.1	5.1%	96.6	8.1%	-40.9%
5. Motorola	55.2	4.9%	100.1	8.4%	-44.9%
Others	238.6	21.2%	227.6	19.1%	4.8%
Total	1,127.8	100.0%	1,190.1	100.0%	-5.2%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 28, 2009

Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

Mobile Phones – These small, battery-powered, voice-centric devices utilize operator-provided cellular/PCS air interfaces for voice communication. They are designed primarily, in both form factor and feature set, for a compelling mobile telephony experience, but may also include text-messaging capability. Mobile phones may include a headset jack for hands-free operation as well as a variety of features, such as personal information management, multimedia, games, or office applications. Mobile phones exist at all points along the form factor, price point, and feature set continua. Mobile phones that combine voice communications capabilities with pen or keypad handheld data features are tracked within the Converged Devices category.

For more information about IDC's Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

Contact

For more information, contact:

Kevin Restivo
krestivo@idc.com
416-673-2230

Latest Tests of Treadmills and Ellipticals Yield 14 Top Machines

Plus, how to decide which is right for your workout needs

After putting 48 machines to the test, Consumer Reports Health lists 14 recommended treadmills and ellipticals for a home workout, including five Best Buy choices which combine performance and value. The report is part of “Get Fit In 2010,” a do-it-yourself Web guide at www.ConsumerReportsHealth.org. The Web site includes new ratings of bathroom scales, fitness tips for a variety of workout styles, and low-cost ways to stay healthy in bad weather.

Top Treadmills: If you like to run or walk

Treadmills have long been the most popular home workout machines, commanding more than 50 percent of the market. They’re a great option if the workout of choice is running or walking. Running, after all, is the gold standard of cardiovascular exercise. Consumer Reports Health tested 29 treadmills, analyzing ease of use, ergonomics, exercise range, quality and durability of construction, safety and more.

In the nonfolding category, Consumer Reports Health recommends four machines, including one CR Best Buy, the AFG 13.0 AT for $1,800. It’s the best value of the bunch and comes with a variety of exercise programs. Other options in this category include the top-rated Precor 9.31, a powerful well-built model that scored well across the board at a price of $3,300. Nonfolding machines are usually more powerful with longer decks and tend to be higher priced.

The best folding treadmills save space and compare favorably with any treadmill. Consumer Reports Health recommends four machines and identifies the Sole F63 as a CR Best Buy at $1,000, a good price for a machine that tops out at 12 mph with a 13 percent incline. The top rated Bowflex 7-Series, priced at $1500, has a bright easy-to-read monitor display, and its 60-inch deck is as long as the deck of any nonfolding model’s, which makes it suitable for just about any runner.

Consumer Reports Health notes that some treadmills now come with a negative-incline option to simulate downhill running, which works different muscle groups. Other models offer adjustable cushioning. While not a CR Best Buy or Recommended model, the NordicTrack A2550 scored in the middle of the pack of the folding models; it allows users to alternate the feel of their workout from running on concrete to running on a padded track. Some treadmills come with gadgets such as an MP3 dock with speakers or a headphone jack. “It’s a good idea to try the machines out in a store and see how you like these features. Bottom line, if those bells and whistles entice you to work out more, they may be worth the expense,” said Nancy Metcalf, senior program editor, Consumer Reports Health.

One of the folding treadmills, the Best Fitness BFT1, earned a rating of Don’t Buy: Performance Problem because its incline feature malfunctioned on two of the three samples tested by Consumer Reports.

Top Ellipticals: For a good cardiovascular workout without the high impact of running

Elliptical exercisers have been gaining ground in the marketplace in recent years. Their motion provides a good cardiovascular workout, but without the high impact of running. Those with joint problems or individuals who are carrying a little extra weight might find that ellipticals are a good choice. Another benefit of ellipticals is the ability to crank up the resistance for strength training or reverse stride to work slightly different muscles.

Consumer Reports’ testers pedaled on 19 ellipticals, evaluating exercise range, ergonomics, construction, safety, and more, recommending six machines. Of those machines, three are Consumer Reports Best Buys: the Sole E35 at $1300 is the top rated of the three Best Buys, followed by the NordicTrack AudioStrider 990 for $900 and the LifeCore LC985VG for $1,000. The Sole has an adjustable incline, pedals with a changeable foot angle, and controls on the moving handgrips, while the NordicTrack is notable for its programs controlled by its heart-rate monitor and a ramp that can be adjusted electronically while working out, features usually found in more expensive models. The LifeCore has a dial control for adjusting resistance and selecting from multiple preset programs.

How to shop for the machine that’s right for you:

• Budget and midrange models can usually be found at Sears, Sports Authority, Walmart and other discount and sporting-goods chains. Shop at sporting-goods specialty stores for moderate to high-end models.
• Keep a close eye on dimensions. Exercisers will need extra space to safely get on and off a machine. When shopping for ellipticals, take close stock of the vertical space, especially if there are low ceilings, because exercisers will be elevated on the machine.
• The machine’s display should have easy-to-use controls and will show some combination of heart rate, calories burned, speed, resistance levels, and details such as time and distance.
• When it comes to warranties, look for one that provides two to three years of coverage on major moving parts and a year for labor. Surveys on the probability of failure and repair costs have shown that extended warranties are probably not a good deal.
• Pay attention to ergonomics and adjustability. When using an elliptical, there should never be discomfort in the knee or hip joints, and knees shouldn’t bump the frame or handgrips. See more detailed tips online at www.ConsumerReportsHealth.org.