NEW YORK New research from Interpublic Group's Initiative concludes that the recession is having a far greater impact on consumer spending habits than previous downturns, and that some behavior patterns, as well as brand perceptions, will be permanently changed.
Recessions usually drive short-term changes in consumer behavior, with people reverting to usual patterns once the good times return. But this time around, the Internet has changed the game. Consumers have turned more than ever to the Web to seek more information about brands -- from how to stretch household budgets to product reviews-and they're not turning back.
Also, according to the research, 75 percent of consumers have altered their purchasing behavior over the past year, in some cases trading down and in others making wholesale lifestyle changes.
"Brand loyalty has been badly shaken," said Sue Moseley, Initiative's worldwide director of research and futures, who oversaw the research and the resulting report, which the agency is releasing this week.
Internet usage was up among respondents in every country surveyed, with the largest increase being for searches for coupons and offers, up 58 percent overall versus a year ago. Big usage gains were also recorded for online researching for general information (up 49 percent), reading consumer content online (up 48 percent) and buying products online (up 48 percent).
"Consumers are spending more time researching products and gathering opinions from other people before purchasing," the report states. "As a result, people are thinking more deeply about products, raising huge opportunities for brands to develop and strengthen their relationship with consumers."
The research, based on a May survey of 3,200 consumers in the U.S., western Europe and China, showed a significant drop in trust in established marketing channels. Conversely, it showed a sharp rise in people's trust of individuals, often complete strangers, commenting about their experiences with brands online.
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