Daily Research News Online no. 2661 - American Consumers Go Back to Basics

American Consumers Go Back to Basics

October 9 2003

American consumers are less inclined to use credit, go out of their way to buy American merchandise or pay more for environmentally safe products than they were in 1998, according to new 'Buying Styles' data from Mediamark Research Inc (MRI).

The decline in the three areas may mean that consumers have returned to more basic considerations in the light of the economic downturn.

MRI asks consumers ages 18 and older whether they agree or disagree with the following three statements: 'Buying American products is important to me'; 'If I really want something, I will buy it on credit rather than wait'; and 'I am willing to pay more for a product that is environmentally safe.' Results for 1998 and 2003 are as follows (figures show percentages agreeing):

	Buy American		Change	Buy on Credit		Change	Pay for Environment		Change
	1998	2003	Change	1998	2003	Change	1998	2003	Change
Adults
All	80.97	76.08	-6.0%	42.60	38.47	-9.7%	63.50	59.36	-6.5%
Men	79.23	75.25	-5.0%	42.63	39.58	-7.2%	62.49	57.25	-8.4%
Women	82.57	76.85	-6.9%	42.58	37.45	-12.0%	64.42	61.30	-4.8%
18-24	65.75	57.69	-12.3%	43.90	36.99	-15.7%	58.78	52.16	-11.3%
55+	88.84	83.86	-5.6%	39.88	36.29	-9.0%	68.90	65.94	-4.3%
Household Income
$100,000+	81.65	76.03	-6.9%	41.50	37.01	-10.8%	63.45	59.20	-6.7%
Less Than $100,000	74.61	76.33	2.3%	52.81	45.45	-13.9%	63.92	60.12	-5.9%

Source: MRI Spring 1998 and Spring 2003 Survey of the American Consumer

Importance of buying American is down 5% among all adults and steeply, by 12%, in the 18-24 age bracket. This youngest age bracket also saw the biggest decline in willingness to buy on credit (down by 15.7%). Consumers with household incomes higher than $100,000 registered a 13.9% decline, c.3% bigger than those with lower incomes.

On the environmental question, the biggest decline was again among the 18-24 age group, with 11.3% fewer of them willing to pay more to protect the environment than five years ago.

'Clearly, consumer attitudes and habits have been impacted by the waning fortunes of the financial markets and the general economy since 1998, which was near the height of the boom years', said Anne Marie Kelly, VP of Marketing and Strategic Planning at MRI. 'The attitudes of consumers ages 18-24 appear to have been the most impacted, most likely an indication of their declining economic and employment options over the last five years'.

MRI, which is part of NOP World, releases data from its Survey of the American Consumer (adults 18+) twice yearly, in the spring and fall.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.