American Consumer Holiday Spending: Online Shopping Survey 2010 by PSB

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PSB's Holiday Spending Survey contains detailed information about Americans gift giving plans for the 2010 season. Perhaps the most important trend affecting this holiday shopping season is the rise of social shopping, particularly in the under-40 demographics. Social media networks are increasingly integrated into consumers shopping behaviors.

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American Consumer Holiday Spending: Online Shopping Survey 2010 by PSB

  1. 1. 2010 HOLIDAY SPENDINGSURVEYWHAT AMERICANS ARE BUYINGHOW MUCH THEY‟RE SPENDING, ON WHAT ANDWHEREWHAT CELEBS HAVE BEEN „NAUGHTY‟ AND „NICE‟November 24, 2010NEW YORK • WASHINGTON • DENVER • SEATTLE • LOS ANGELES • SAN FRANCISCO • AUSTIN • LONDON • HONG KONG • BEIJING • DUBAI© PENN SCHOEN AND BERLAND ASSOCIATES LLC.
  2. 2. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 1IntroductionAs the holiday spending season begins, and Americans continue to reckon with a slower-than-expected recovery, new research released today reveals that consumers are largely planningto hold the line on spending relative to 2009. 52% say that they will spend the same or morethan they did last year. Though Americans see the economy today as better than it was, andare less concerned about losing their jobs, they are more concerned about the prospects forfuture economic growth than they were last year, and their budgets continue to be guided bycaution about the current climate.In turn, consumers are increasingly turning to the Internet for their holiday shopping needs;37% plan to shop online more this year, a gain of 7% over last year. And for the under-40segments, the rise of social shopping continues as a key trend; 24% of social media users(representing 72% of total respondents) say they will make a purchase decision this holidaybased on a recommendation they receive from friends or family through a social media network– including 34% of 30-39 year olds and 30% of 18-29 year olds.With Americans looking for ways to get into the holiday spirit, respondents were asked tochoose from a list of public figures to determine who‟s been naughty and who‟s been nice in2010. Sandra Bullock and Taylor Swift continue to be seen as particularly deserving of holidaygenerosity this year, while Americans think that Tiger Woods and Mel Gibson should be in forsome healthy servings of coal.Penn Schoen Berland conducted 1,006 Internet interviews of American consumers fromNovember 16-17, 2010. The margin of error is ±2.53% and larger for subgroups.State of Personal Finances and Effect on Gift-GivingOverall, consumers are feeling slightly better about the current state of the nation‟s economy;5% fewer describe it as “poor” than did so in 2009. And going forward, many are optimistic thatthe economy will improve; while just 16% think that the economy is in “excellent” or “good”shape today, 35% think it will be in one year‟s time.How would you describe current state ofthe nation’s economy? 2010 2009 Change Male FemIncome<40KIncome40-70KIncome70K+Excellent2 2 0 2 1 1 1 2Good14 11 +3 15 12 13 10 18Not so good58 55 +3 55 61 57 61 57Poor27 32 -5 28 26 29 28 23A year from now, what state do you thinkthe nation’s economy will be in?2010 2009 Change Male FemIncome<40KIncome40-70KIncome70K+Excellent3 4 -1 4 2 2 3 5Good32 38 -6 31 34 32 30 34
  3. 3. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 2Not so good49 41 +8 45 53 48 51 49Poor16 17 -1 20 11 18 16 12Americans are also feeling more positive about the state of their personal finances –particularly those with annual household incomes over $70,000. 43% say that their personalfinances are “excellent” or “good,” an increase of 6% over 2009; 56% of wealthier respondentssay the same. Consumers are also feeling increased job security, as 6% fewer report that theyare “very concerned” about losing their job in the next year.How would you describe the state of yourown personal finances? 2010 2009 Change Male FemIncome<40KIncome40-70KIncome70K+Excellent3 5 -2 3 2 2 1 6Good40 32 +8 39 40 29 43 50Not so good42 41 1 40 43 47 40 35Poor16 22 -6 18 14 23 16 9How concerned are you that youwill lose your job in the next year? 2010 2009 Change Male FemIncome<40KIncome40-70KIncome70K+Very concerned15 21 -6 15 15 19 13 12Somewhat concerned27 24 +3 29 25 27 29 25Not very concerned29 24 +5 27 30 23 31 34Not at all concerned30 31 -1 28 31 31 27 28Consumers feeling slightly more optimistic about the national economy and their personalfinancial situations, but how will that impact their holiday spending? Most consumers areplanning to maintain their prior levels of spending this season – 52% say they will spend thesame as they did last year. However, 29% are planning to cut back, including 33% of malerespondents.Indeed, the current economic situation continues to exert a strong influence on holidayspending, with 33% saying that their budget will be affected “significantly” compared to pastholiday seasons before the recession. This trend remains largely unchanged from 2009.Compared to last year, do you plan to spendmore/less/the same during the upcomingholiday season?All Male FemIncome<40KIncome40-70KIncome70K+More 19 19 30 17 19 19
  4. 4. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 3The same 52 48 45 54 53 52Less 29 33 25 29 27 29How much do you think the currenteconomic situation is going to affect yourbudget this holiday season compared topast holiday seasons before therecession?2010 2009 Change Male FemIncome<40KIncome40-70KIncome70K+Significantly33 36 -3 32 35 44 30 24Moderately31 30 +1 30 32 29 32 34Slightly19 20 -1 18 21 27 22 20Not at all17 14 +3 21 13 10 17 22Consumers who plan to spend less this holiday are largely doing so because they are trying toget out of debt (51%) or because they are not sure that the worst of the recession is behind us(48%).[Among those spending less] Why do youanticipate spending less this holiday season?Please select all that apply.All Male FemIncome<40KIncome40-70KIncome70K+I am trying to get out of debt 51 54 48 47 54 51I am not sure that the worst of the recession isbehind us48 58 39 44 50 53We instituted a cap on gift costs this year 25 23 28 17 29 37I lost my job 18 18 18 25 16 9I am fearful of losing my job 11 14 9 8 14 14Unlike last year, I am not planning to travelthis year10 8 11 7 11 14I am fearful of my family members losing theirjobs9 9 9 5 11 13I am anxious about my investments 7 9 5 4 4 12Other 16 11 21 13 16 17Online Shopping Gains, Though Retailers Keeps Pace onDeals
  5. 5. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 437% of consumers say that they will be shopping online more this year – a 7% increase overlast year. And the strength of online shopping is not based entirely on price advantages, as51% continue to say that they will find better deals in a store rather than online. (Onlineretailers can take heart in the fact that 59% of respondents aged 30-39 say that they‟ll findbetter deals on the Internet). Nevertheless, 62% of consumers plan to shop at retail storesabout the same amount they did last year.Compared to last year, doyou plan to do each ofthe following more, less,or the same amount?(Ranked by % saying“more”)MORE LESS ABOUT THE SAME2010 2009 Change 2010 2009 Change 2010 2009 ChangeBuy discounted items 51 53 -2 7 7 0 43 40 +3Use coupons 47 50 -3 12 9 +3 41 40 +1Shop online 37 30 +7 20 22 -2 43 48 -5Use cash to buy gifts 33 37 -4 15 15 0 52 48 +4Shop at outlets or discountstores (e.g. Ross, TJ Maxx,Loehmann‟s, etc)24 28 -4 25 24 +1 51 47 +4Shop at retail stores 16 19 -3 22 23 -1 62 59 +3Take advantage of specialprograms such as layawayor 0% interest15 22 -7 38 28 +10 47 50 -3Use credit cards to buygifts13 14 -1 45 48 -3 42 38 +4Thinking about thisholiday season, doyou think you willfind the best deals…2010 2009 Change18- 29 30- 39 40- 49 50- 65Male FemaleIncome<40KIncome40-70KIncome70K+In a store, not online 51 51 0 51 41 49 58 45 56 51 52 46Online 49 49 0 49 59 51 42 55 44 49 48 54Some brick-and-mortar retailers are showing some growth, as well. 7% more consumers planto shop at Target this year than did so last year.Furthermore, the online retail market may be diversifying – despite the increase in consumerintent to shop online this year, many fewer consumers are planning to shop at Amazon.com.However, current Amazon.com shoppers are increasing in intensity – 34% of respondents whoshopped there last year plan to do so more this year.Do you plan to shop at any of thefollowing stores this holiday season?Please select all that apply.2010 2009 Change Male FemaleIncome<40KIncome40-70KIncome70K+Wal-Mart 55 63 -8 49 60 60 57 45
  6. 6. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 5Target 42 35 +7 34 51 37 44 47Amazon.com 36 47 -11 35 36 32 38 40Best Buy 27 28 -1 30 25 22 27 35Kohl’s 26 23 +3 22 31 15 33 33Compared to last year, doyou plan to do each ofthe following more, less,or the same amount?(Ranked by % saying“more”)MORE LESS ABOUT THE SAME2010 2009 Change 2010 2009 Change 2010 2009 ChangeAmazon.com 34 31 3 21 19 2 55 50 5Wal-Mart 25 29 -4 19 18 1 57 53 4Target 18 18 0 25 28 -3 58 54 4Dollar Store 18 27 -9 24 20 4 56 53 3Kohls 15 13 2 30 31 -1 46 56 -10The Rise of Social ShoppingPerhaps the most important trend affecting this holiday shopping season is the rise of socialshopping, particularly in the under-40 demographics. 72% of consumers have created anaccount on social media, including 79% of 30-39 year olds. And a quarter of all respondentsare following brands on social media, including 38% of 30-39 year olds and 31% of 18-29 yearolds.Social media networks are increasingly integrated into consumers‟ shopping behaviors, aswell. This holiday, 24% of social media users say they will make a purchase decision based ona recommendation they receive from friends or family through a social media network –including 34% of 30-39 year olds and 30% of 18-29 year olds.Have you ever created anaccount on a socialmedia network (such asFacebook, MySpace,LinkedIn, Twitter)?All Male Fem18- 29 30- 39 40- 49 50- 65 Income<40KIncome40-70KIncome70K+Yes 72 68 76 80 79 73 58 74 70 73No 25 28 23 14 19 25 41 23 29 25Don‟t know 3 4 2 6 1 2 1 4 1 2Do you follow any brandson social mediaAll Male Fem 18- 29 30- 39 40- 49 50- 65Income Income Income
  7. 7. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 6networks? <40K 40-70K 70K+Yes 26 25 26 31 38 23 14 25 25 28No 69 70 69 60 60 73 83 68 72 68Don‟t know 5 5 5 9 3 4 3 6 3 4[Among social mediaaccount holders]Thinking specificallyabout this holidayseason, do you think youwill make purchasedecisions based onrecommendations youreceive from friends andfamily on a social medianetwork?All Male Fem 18- 29 30- 39 40- 49 50- 65Income<40KIncome40-70KIncome70K+Yes 24 23 25 30 34 18 14 25 23 26No 52 58 47 46 46 56 63 54 56 49Don‟t know 23 19 28 24 20 27 23 21 22 25What Americans are Planning to BuyGift certificates, clothing and toys remain the three most popular gift categories, thoughspending for all has slipped slightly from last year.Gift Planning 2010 2009 ChangePlannedSpendGift certificates/ Gift cards 50 49 +1 71.7Clothing and accessories 47 50 -3 75.1Toys 40 46 -6 53.9Video games 33 32 +1 29.9DVDs/Blu-ray Discs 31 34 -3 22Books 28 30 -2 16.4Cash 28 30 -2 54.7Jewelry 23 24 -1 35.3Music 22 24 -2 14.6Consumer electronics (e.g. TV, iPod, etc) 21 20 +1 52.6
  8. 8. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 7Health and beauty products 19 24 -5 16.6Computer or computer products 15 16 -1 32.7Items for the home or garden 15 13 +2 16.3Wine/Liquor 14 17 -3 14.6Tools 11 14 -3 13Sports and outdoor equipment 11 11 0 12.9Flowers/Gift baskets 9 13 -4 9.56Movie theater tickets/memberships 9 12 -3 7.21Charitable donations 7 8 -1 15.7Magazine subscriptions 5 6 -1 3.11Consumers are nevertheless still happy to get what they give, as cash, gift certificates andclothing/accessories top the list of gifts respondents would most like to receive. Consumers arealso increasingly interested in receiving electronics as gifts – 17% say electronics are on theirwish list this year, 5% more than last year.What do you want for Christmasthis year? Top 5 shown.2010 2009 Male FemIncome<40KIncome40-70KIncome70K+Cash 57 60 -3 60 54 64 54Gift certificates/ Gift cards 30 29 +1 24 36 32 30Clothing and accessories 26 26 0 18 35 26 25Books 18 19 -1 12 18 17 18Consumer electronics (e.g. TV, iPod, etc) 17 12 +5 14 15 15 20Apple continues to be a buzz brand in the computer space this year – 40% of consumers whointend to purchase a new computer say they are considering Apple, a 12% increase over lastyear. And 12% of respondents who are planning to buy consumer electronics this year say thata tablet device such as an iPad or Blackberry Playbook is on their list, a strong showing for acategory that didn‟t really exist in 2009.[Among computer intenders] Whatbrands are you considering? Top5 shown.2010 2009 Change Male FemIncome<40KIncome40-70KIncome70K+Dell 53 57 -4 51 56 39 67 51Apple 40 24 +16 27 61 45 24 51
  9. 9. © PENN SCHOEN AND BERLAND ASSOCIATES LLC. 8Hewlett-Packard 30 54 -24 20 46 36 25 34Toshiba 30 18 12 16 51 49 10 40Sony 29 27 +2 28 30 41 22 30Americans Know Who’s Bad or GoodSandra Bullock and Taylor Swift remain America‟s Sweethearts, topping the “nice” list for thesecond consecutive year. On the naughty side of things, Tiger Woods and Mel Gibson ridetheir turbulent 2010s into placements near the top of the list of celebrities respondents thinkdeserve a lump of coal.Want more?PSB‟s Holiday Spending Survey contains detailed information about Americans‟ gift givingplans for the 2010 season. More detailed information is available for the following categoriesClothing & AccessoriesComputersConsumer ElectronicsGift CertificatesHealth & BeautyMoviesMusicToysPlease contact Dave Hughes at dhughes@ps-b.com or (646) 981-1486 to learn more.NAUGHTY LIST “Top” 10All Male FemTiger Woods 67 60 73Lindsay Lohan 51 45 56Mel Gibson 48 45 50Kanye West 45 41 49Real Housewives ofNew York City39 35 42Real Housewives ofNew Jersey38 34 42Real Housewives ofOrange County38 35 41Brett Favre 37 42 31Real Housewives ofAtlanta34 31 38Britney Spears 33 32 35NICE LIST Top 10All Male FemSandra Bullock 55 47 62Taylor Swift 40 35 45Angelina Jolie 30 31 30Beyonce 27 23 30Conan OBrien 21 25 17Katy Perry 18 15 21Bret Michaels 17 16 19Jay Leno 17 20 15Jon Stewart 16 21 12Leann Rimes 16 17 15

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