Budget Shopper - UK
Report description
Understand Consumers Budgeting Priorities: Following the recession, Britain has seen a resurgence of austerity and six in ten adults now budgets in some way. This report examines the nation's budgeting habits and looks how how they vary by gender, age and income as well as the techniques that people use to keep tabs on their spending. Identifying budgeting habits will enable you to develop a better understanding for the types and timings of promotions.
Navigate the new shopper rationale: Out of economic uncertainty and frugality rises the smart shopper, one that is well informed and more thoughtful when it comes to making purchases.The budget shopper isn't necessarily about only buying the cheapest products, but more about setting a spending limit and sticking to it (to varying degrees).
Explore budgeting habits: There are many different ways to make money go further. Who is most likely to stretch the budget and how do they do it? Do they adopt a number of habits or stick to just one or two?
The value of branding: What role does branding have to play in austere Britain? Does a basket full of brands send out a message on financial status? Does buying brands make people feel better about themselves?
The legacy of the recession: How has the recession shaped consumer expectations of discounting. What does this mean for the way in which they budget and will these new budgeting habits continue into the future?
Unlock the potential of word of mouth: Has the stigma of buying in the sales or buying cheapest on display products given way to a trend for people bragging about the bargains that they find?
Table of contents
IntroductionMethodology
Abbreviations
Definition
Executive Summary
What is it all about?
Consumer confidence
Figure 1: Deviation of the index of consumer confidence from the average, January 1990-January 2011
Emotional response to brands
Figure 2: Emotional response to brands, by budgeting habits, February 2011
Savvy shoppers plan spending
Figure 3: Repertoire of number of things people do to make money go further, February 2011
Brag a bargain
Figure 4: Agreement with attitudes towards brands and bargains, February 2011
Outlook
Future Opportunities
Smart move
Helping hands
Brand question
Vouching for value
Well informed
Appy shopping
Broader Market Environment
Key points
Demographic profile
Figure 5: Demographic trends table, by gender and age, 2005-15
Consumer confidence knocked
Figure 6: Deviation of the index of consumer confidence from the average, January 1990-January 2011
Figure 7: Relative consumer confidence and real household spending (seasonally adjusted), Q1 1990-Q4 2010
Employment market remains uncertain
Figure 8: Unemployment rate in the UK (all: aged 16+) seasonally adjusted, January 1988-November 2010
Figure 9: Employment and unemployment, by gender, 2005-15
Savings return
Figure 10: Consumer savings ratio, Q1 1987-Q3 2010
Continued austerity measures
Figure 11: Consumer savings, at current and constant 2005 prices, 2005-15
Interest rates drop
Figure 12: Average UK base rates and UK inflation*, January 1989-January 2011
Figure 13: Consumer Price Index, January 1988-January 2011
Consumer Financial Health
Key points
Six in ten are managing OK
Figure 14: The impact of the recession, February 2011
Saving in the shops
Figure 15: Current financial situation, by household tenure, February 2011
Mortgagees feel the pinch
Today’s OK and outlook is fine
Figure 16: General financial situation, February 2011
Good times for the retired
Consumer Budgeting Habits
Key points
Budgeting for most
Figure 17: Budgeting habits, February 2011
Affluent budget but overspend
Everyone loves a bargain
Figure 18: Attitudes towards spending money, by budgeting habits, February 2011
Sophisticated non-budgeters
Figure 19: Ways to make money go further, by budgeting habits, February 2011
Brand-conscious budgeters
Figure 20: Emotional response to brands, by budgeting habits, February 2011
It’s getting tighter
Figure 21: Current financial situation, by budgeting habits, February 2011
Getting into trouble
Figure 22: General financial situation at the moment, by budgeting habits, February 2011
Recessionary effects
Figure 23: The impact of the recession, by budgeting habits, February 2011
Figure 24: The impact of the recession, by budgeting habits, February 2011
Figure 25: General financial situation over the next year or so, by budgeting habits, February 2011
Future focus
Figure 26: General financial situation over the next year or so, by budgeting habits, February 2011
Quality vs Value
Key points
We want value but we also want quality
Figure 27: Importance of quality vs value, by product type, February 2011
Big-ticket quality
Men unconcerned by cost
Jean jeanie
Premium and value side by side
Cheapest but not the most popular
Figure 28: Repertoire of cheapest products regardless of quality, February 2011
Multiple mid-range purchases
Figure 29: Repertoire of mid-range products on quality and price, February 2011
Highest quality not every day
Figure 30: Repertoire of highest-quality products regardless of cost,
Attitudes towards Spending
Key points
Smart shoppers
Figure 31: Attitudes towards spending money, February 2011
Delayed purchase
Young and free
Making the money go further
Figure 32: Ways to make money go further, February 2011
False economy?
The role of price comparisons
Who controls the purse strings?
Women more resourceful at making money go further
Figure 33: Repertoire of number of things people do to make money go further, February 2011
Frugal times
Figure 34: Trends in agreement with selected lifestyle statements on shopping, 2006-10
Loyalty remains
Emotional Response to Brands and Retailers
Key points
Feel-good bargains
Figure 35: Emotional response to brands, February 2011
Brand young
Getting what you pay for
Not so valued
Ethical choices
How low can you go?
Feeling happy
Figure 36: Attitudes towards selected retailers, February 2011
Convenience sells
Figure 37: Attitudes towards selected retailers, February 2011
Figure 38: Attitudes towards selected retailers, February 2011
Figure 39: Attitudes towards selected retailers, February 2011
Figure 40: Attitudes towards selected retailers, February 2011
Target Groups
Key points
Figure 41: Budget shopper consumer target groups, February 2011
Indifferent
Who are they?
Targeting opportunities
Survival Budgeters
Who are they?
Targeting opportunities
Smart Shoppers
Who are they?
Targeting opportunities
Yo-Yo Budgeters
Who are they?
Targeting opportunities
Appendix - Consumer Financial Health
Figure 42: Profile of the impact of the recession, by demographics, February 2011
Figure 43: Profile of most popular current financial situation, by demographics, February 2011
Figure 44: Profile of next most popular current financial situation, by demographics, February 2011
Figure 45: Profile of current general financial situation, by demographics, February 2011
Figure 46: Profile of future (next year or so) general financial situation, by demographics, February 2011
Appendix - Consumer Budgeting Habits
Figure 47: Attitudes towards spending money, by budgeting habits, February 2011
Figure 48: Attitudes towards spending money, by budgeting habits, February 2011
Figure 49: Ways to make money go further, by budgeting habits, February 2011
Figure 50: Emotional response to brands, by budgeting habits, February 2011
Figure 51: Current financial situation, by budgeting habits, February 2011
Figure 52: General financial situation at the moment, by budgeting habits, February 2011
Figure 53: Profile of budgeters and non budgeters, by demographics, February 2011
Figure 54: Profile of most popular budgeting habits, by demographics, February 2011
Figure 55: Profile of next most popular budgeting habits, by demographics, February 2011
Appendix - Quality vs Value
Figure 56: Profile of importance of quality vs value for shower gel/body wash, by demographics, February 2011
Figure 57: Profile of importance of quality vs value for meat, by demographics, February 2011
Figure 58: Profile of importance of quality vs value for TV, by demographics, February 2011
Figure 59: Profile of importance of quality vs value for restaurant meal, by demographics, February 2011
Figure 60: Profile of importance of quality vs value for orange juice, by demographics, February 2011
Figure 61: Profile of importance of quality vs value for jeans, by demographics, February 2011
Figure 62: Profile of importance of quality vs value for pizza, by demographics, February 2011
Figure 63: Profile of importance of quality vs value for hotel room/reservation, by demographics, February 2011
Figure 64: Profile of importance of quality vs value for car, by demographics, February 2011
Figure 65: Profile of importance of quality vs value for wine, by demographics, February 2011
Figure 66: Profile of importance of quality vs value for theatre/musical/opera tickets, by demographics, February 2011
Figure 67: Profile of importance of quality vs value for pet food, by demographics, February 2011
Figure 68: Profile of repertoire of cheapest products regardless of quality, by demographics, February 2011
Figure 69: Profile of repertoire of mid-range products on quality and price, by demographics, February 2011
Figure 70: Profile of repertoire of highest-quality products regardless of cost, by demographics, February 2011
Appendix - Attitudes towards Spending
Figure 71: Trends in agreement with selected lifestyle statements on shopping, 2006-10
Figure 72: Agreement with selected lifestyle statements on shopping, by demographics, 2010
Figure 73: Agreement with selected lifestyle statements on shopping, by demographics, 2010
Figure 74: Profile of agreement with the statement ‘I wait for special offers/sales/promotions to buy the products/brands I want’, by demographics, February 2011
Figure 75: Profile of agreement with the statement ‘I have cut back on some things so that I can keep buying my favourite products’, by demographics, February 2011
Figure 76: Profile of agreement with the statement ‘I tend to spend money without thinking’, by demographics, February 2011
Figure 77: Profile of agreement with the statement ‘I carefully account for all my spending’, by demographics, February 2011
Figure 78: Profile of agreement with the statement ‘I buy what I want regardless of price’, by demographics, February 2011
Figure 79: Profile of agreement with the statement ‘I only buy products as a replacement’, by demographics, February 2011
Figure 80: Profile of agreement with the statement ‘I don’t like paying full price for anything’, by demographics, February 2011
Figure 81: Profile of agreement with the statement ‘I make a shopping list and stick to it when doing my grocery shopping’, by demographics, February 2011
Figure 82: Profile of agreement with the statement ‘I delay buying some things until after payday’, by demographics, February 2011
Figure 83: Profile of agreement with the statement ‘I am less budget-conscious after I have just been paid’, by demographics, February 2011
Figure 84: Profile of agreement with the statement ‘I find ways to justify any overspending’, by demographics, February 2011
Figure 85: Profile of most popular ways to make money go further, by demographics, February 2011
Figure 86: Profile of next most popular ways to make money go further, by demographics, February 2011
Figure 87: Profile of other ways to make money go further, by demographics, February 2011
Figure 88: Profile of repertoire of number of things people do to make money go further, by demographics, February 2011
Appendix - Emotional Response to Brands and Retailers
Figure 89: Profile of agreement with the statement ‘Buying well-known brands makes me feel good about myself’, by demographics, February 2011
Figure 90: Profile of agreement with the statement ‘You get what you pay for’, by demographics, February 2011
Figure 91: Profile of agreement with the statement ‘It makes me feel better if the food products I buy are organic or fair trade’, by demographics, February 2011
Figure 92: Profile of agreement with the statement ‘Low price is more important to me than brand names’, by demographics, February 2011
Figure 93: Profile of agreement with the statement ‘I hide the fact that I buy value products’, by demographics, February 2011
Figure 94: Profile of agreement with the statement ‘I love the thrill of getting a bargain’, by demographics, February 2011
Figure 95: Profile of agreement with the statement ‘I am proud to tell my friends about any good bargains I find’, by demographics, February 2011
Figure 96: Profile of agreement with the statement ‘It is a good feeling to know I spent less than others on the same/similar products’, by demographics, February 2011
Figure 97: Profile of most popular neutral/sad attitudes towards selected retailers, by demographics, February 2011
Figure 98: Profile of next most popular neutral/sad attitudes towards selected retailers, by demographics, February 2011
Figure 99: Profile of other neutral/sad attitudes towards selected retailers, by demographics, February 2011
Figure 100: Profile of happy attitudes towards selected retailers, by demographics, February 2011
Figure 101: Profile of other happy attitudes towards selected retailers, by demographics, February 2011
Figure 102: Profile of other happy attitudes towards selected retailers, by demographics, February 2011
Figure 103: Profile of other happy attitudes towards selected retailers, by demographics, February 2011
Figure 104: Profile of other happy attitudes towards selected retailers, by demographics, February 2011
Appendix - Target Groups
Figure 105: Target groups, by demographics, February 2011
Figure 106: Attitudes towards spending money, by target groups, February 2011
Figure 107: Budgeting habits, by target groups, February 2011
Figure 108: Importance of quality vs value, by product type, by target groups, February 2011
Figure 109: Repertoire of cheapest products regardless of quality, by target groups, February 2011
Figure 110: Repertoire of mid-range products on quality and price, by target groups, February 2011
Figure 111: Repertoire of highest-quality products regardless of cost, by target groups, February 2011
Figure 112: Ways to make money go further, by target groups, February 2011
Figure 113: Repertoire of number of things people do to make money go further, by target groups, February 2011
Figure 114: Emotional response to brands, by target groups, February 2011
Figure 115: Current financial situation, by target groups, February 2011
Figure 116: General financial situation at the moment, by target groups, February 2011
Figure 117: The impact of the recession, by target groups, February 2011
Figure 118: General financial situation over the next year or so, by target groups, February 2011
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