Chadwick  Martin Bailey and iModerate Research Technologies found that although 24  percent of U.S. consumers only made minor cutbacks to spending during  the Great Recession, another 33 percent who did reduced their spending  now plan to continue managing these tight budgets even when the economy  comes back to life.

The largest group of respondents haven't yet decided when and/or if  they will pick up spending again and they represented  43 percent of  consumers surveyed.  But in all, the marketing groups concluded that  this data presents  opportunities for brands to speak the right language  and reach out in appropriate way to capture marketshare given what is  clearly "new normal" shopping habits.

The consultants placed jewelry, designer clothes and shoes in a  category titled Guilty Pleasures and found this segment faces the most  difficult rebound ahead compared with other product categories. These  items were seen as “frivolous” purchases—particularly those where  consumers couldn't rationalize a tangible value. "This trend was  consistent across income levels: Even more wealthy people need better  reasons to buy. However the aspiring affluent are particularly  vulnerable, people with expensive tastes, but with incomes that aren’t  large enough to be recession-proof," the survey concluded.

“It is clear that consumers are still forming new spending habits,  and the companies that are likely to thrive are those that are in tune  with those new habits and focusing on the marketshare that is still up  for grabs,” said Jon Giegengack, director of Chadwick Martin Bailey’s  e-commerce and retail practice. “Deep customer insight and segmentation  are key to identifying and understanding what motivates customers  today.”

The study found that quality of life purchases -- vacations, home  improvement, dining -- could become more of an experience vs. a  possession therefore they were  less likely to be cut. Items that  consumers just pay without question -- cable TV/Internet, magazines --  would benefit simply because consumers need to opt-out of that monthly  or automated charge. Products that entertain the consumer -- video  games, books, electronics -- came out o.k. since people have time to  fill and therefore the price was justified.

Many consumers reported that they were content with their new,  slimmed-down spending habits. While many say they would not return to  their ‘spend at will' habits many look forward to some financial  breathing room to ‘splurge' every once in a while.

Ref: <a href="http://www.diamonds.net/news/NewsItem.aspx?ArticleID=31964" target="_blank">Diamonds.net</a>