05 September 2008

Economic Downturn : Effect Online Consumption Pattern


Brands that fail to embrace and engage in online consumer dialog are set be among those most severely affected by an economic downturn, according to research conducted in the UK by E-consultancy, Logan Tod and immediate future (via Retailer Daily).

Among the findings of the Online Shopping and Credit Crunch Survey Report:

Consumers are turning online to find the best available prices as well as advice, the study found. Price remains the major influencer, with 64% citing this as the most important factor when making an online purchase over the next 12 months. 62% of respondents said they are now more likely to consult reviews written by other web shoppers before buying. Most (69%) search by product name when looking to purchase online, with brand names the next most searched for (43%)


Women are more inclined to reduce overall spending during the economic downturn, but they are more likely to consult online reviews than men (64% vs. 58%). When comparing the different age groups, it is the “silver surfers” (age 55+), many of whom have paid off mortgages or enjoy higher disposable income, who are the least concerned about the economic situation: 43% said the economy would not affect their spending) They are followed by the 16-24 age bracket: 37% wouldn’t change their spending levels.