Those of us who have been there before recognized the signs. Consumer confidence plummeted. The housing market skidded to a halt. And then it really began to get ugly!

Now everyone is thinking more about personal spending — and companies are in full “recession” mode.

When this kind of economic trouble strikes, the instinct of most companies is to cut costs. Traditionally a substantial percentage of the cuts come from the marketing budget, including the research budget.

There’s no way to say this without sounding self-serving – I’m in the research business, after all. But it still needs to be said. Stopping research during a major economic change is one of the biggest mistakes that companies make.

Every economic change in recent history has resulted in a change in consumer attitudes toward spending. It is during tough times that consumers are forced to make decisions about what really matters to them. When they can afford to do less, to buy less, to consume less – it is especially important that companies stay on top of not just what they choose, but WHY they choose it.

A few of the notable changes in consumer attitudes that happened during downturns and affected the marketplace permanently:

• “I deserve it” – the substitution of little luxuries for big ones. Certain candy companies, for example, were poised for this one. The others had to play catch up.
  
  
• Experiences vs. more “stuff” – it was economic downturns that fostered the desire for “you can’t take that away from me” experiences (like adventure travel, family cruises, eco travel). This mindset has been particularly prevalent in the baby boomers, who have lived through repeated economic cycles.
  
  
• Yearning for safety. This product of economic hard times spawned “cocooning” – and the market for home renovations and additions as well as certain types of furnishings for the home.
  
  

What new consumer attitudes will this economic downturn bring? Will your organization be ready to act on newly developed needs and feelings? Customer intelligence is key to customer loyalty now and after the economy improves.

Let’s discuss your research needs and affordable options that you may want to consider.