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Favorited or Forgotten? A Look at If & How Consumer BehaviorWill Change Post-Pandemic

Victoria SakalMorning ConsultApril 23, 2020

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The coronavirus pandemic is the most complex and multifaceted threat that leaders in business have faced in the 21st century. Morning Consult is at the forefront of survey research providing accurate and actionable intelligence needed to guide organizations through this time. Our research capabilities excel in essential data mining, data management and accurate deliverability to help you make informed and strategic business decisions.

Our Approach

Morning Consult tracks consumer confidence daily around the globe to give deep insight into consumer expectations and spending habits.

ECONOMIC INTELLIGENCE

Morning Consult has been tracking the impact of the coronavirus on consumer habits since January, providing the most up-to-date trend data on the pandemic.

RESEARCH INTELLIGENCEBRAND INTELLIGENCE

We survey thousands of consumers on 3000+ brands to provide real-time insight and analytics into the most important brand metrics.

200+ surveys per day, per brand, per country

With over 75,000 annual interviews on every brand, Brand Intelligence brings together millions of survey interviews on thousands of brands to provide real-time insight and analytics into the most important brand metrics

BRAND INTELLIGENCE

Economic Intelligence interviews over 10,000 adults globally per day to gauge confidence in each country on the economy, businesses, and their own personal financial future. The scale, frequency and depth of survey research provides daily insight into key indicators not available elsewhere.

ECONOMICINTELLIGENCE

Morning Consult’s survey research capabilities can deliver customized insights into the issues and metrics specific to your brand, industry, and key initiatives.

RESEARCH INTELLIGENCE

K E E P I N G U P W I T H A R A P I D L Y C H A N G I N G W O R L D

How Morning Consult is covering coronavirus

B R A N D I N T E L L I G E N C E

Daily tracking of over 3,000 brands globally

E C O N O M I C I N T E L L I G E N C E

Tracking in 12 countries with nearly 15,000 surveys daily

N E W S & A N A L Y S I S

Original reporting and email briefings, delivered daily

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Setting the scene

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The vast majority of Americans are concerned about the COVID-19 pandemic, particularly older adults


Generally speaking, how concerned are you about the current coronavirus pandemic?

65%

55%

62%

70%

68%

73%

29%

36%

32%

26%

26%

22%

Adults

Age: 18-29

Age: 30-44

Age: 45-54

Age: 55-64

Age: 65+

Very concerned Somewhat concerned Not very concerned Not at all concerned Don't Know / No Opinion

7

49%

45%

54%

55%

23%

22%

23%

26%

28%

33%

23%

20%

Adults

Income: Under 50k

Income: 50k-100k

Income: 100k+

In a recession Not in a recession Don't Know / No Opinion

Half of Americans believe the U.S. is currently in a recession


Would you say that the United States' economy is currently…

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And U.S. consumer confidence is in free fall, at two year low

ECONOMIC INTELLIGENCE

Morning Consult’s Index of Consumer Sentiment (ICS)

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120

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U.S. governmentshutdown begins

Trump confirms tariffincrease on Chinese goods

WHO declares coronavirusto be a pandemic

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Given this reality, what’s expected of brands?

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Americans want companies take care of their employees and treat them well, even in tough times, and to have products available

BRAND MANAGEMENT IN THE COVID-19 ERA

In general, how important is it to you that companies you purchase goods or services from do each of the following…

67% 65%52% 46% 51% 46% 37% 34% 28%

23% 25%33% 38% 31% 34%

38% 38%35%

Take care of theiremployees andtreat them well,even in tough

times

Have theproducts youneed availablewhen you need

them

Care aboutsociety

Contribute tosociety

Stand forsomethingbeyond just

profit

Show sensitivityand empathy

towards peoplelike you

Are localbusinesses

Have valuessimilar to yours

Help you feelconnected toothers or your

community

Very important Somewhat important

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Consumers are more likely to buy from companies that provide clean and safe store environments, help people, and treat their employees well

BRAND MANAGEMENT IN THE COVID-19 ERA

Share of Americans agreeing that in times like this…

64% 59% 53% 53% 50% 50% 47% 40% 38%

24% 28% 33% 31% 32% 32% 31% 35% 32%

I am more likelyto buy from

companies thatprovide cleanand safe storeenvironments

I feel a strongappreciation forcompanies that

have continued toprovide their

goods or servicesduring thecoronaviruspandemic


companies thathelp people


companies thattreat their

employees withflexibility and

empathy

I am more likely to buy from companies focused on

adding value to their

customers’ lives, not just making a

profit


companies thatprovide flexibi lity

to theircustomers, suchas waiving fees


companies thatprovide their

employees withpaid sick leave

I am more likelyto buy fromcompanies

concerned aboutmy mental health

and well-being


companies thatdo not lay off

their employees

Strongly agree Somewhat agree

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How is consumption changing in the context of COVID-19, and what changes will last post-pandemic?

13

22%17%

28%23%

20%22%21%

26%21%22%23%22%

25%21%

22%27%

27%19%

32%32%

23%30%

22%25%

28%25%

22%29%35%

29%26%

27%31%

26%27%

27%

6%14%

6%

8%

6%4%

6%7%

13%15%14%

13%12%

14%14%

10%11%

12%15%

13%

6%8%8%

5%

8%5%4%

8%5%

7%6%

AdultsAge: 18-29Age: 30-44Age: 45-64

Age: 65+Income: Under 50kIncome: 50k-100k

Income: 100k+4-Region: Northeast

4-Region: Midwest4-Region: South4-Region: West

Much less Somewhat less About the same Don't Know / No Opinion Somewhat more Much more

Across demographics, most Americans are spending less than usual since the pandemic, with high-income respondents most likely to decrease spending

PURCHASE AND BEHAVIOR CHANGES

Since the COVID-19 pandemic (coronavirus) spread to the U.S., would you say you're spending more or less than you usually do?

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12%11%

15%11%10%

13%10%8%9%13%12%13%

8%7%

10%10%

6%8%

9%11%10%

9%6%

10%

38%33%

30%42%

45%38%

38%37%37%

42%37%

35%

8%16%7%

12%

7%7%

9%8%

22%20%

23%21%26%

18%28%28%

24%21%

22%22%

12%14%15%

11%

11%14%13%12%

9%14%12%

AdultsAge: 18-29Age: 30-44Age: 45-64

Age: 65+Income: Under 50kIncome: 50k-100k

Income: 100k+4-Region: Northeast

4-Region: Midwest4-Region: South4-Region: West

Much less Somewhat less About the same Don't Know / No Opinion Somewhat more Much more

Despite decreases in overall spending, most are spending about the same on online purchases during the pandemic – but 34% are spending more


Now thinking only about online purchases, since the COVID-19 pandemic (coronavirus) spread to the U.S., would you say you're spending more or less than usual?

15

30%

13%

10%

17%

10%

15%

44%

44%

42%

9%

32%

33%

Online platforms

In-person at local stores

In-person at big-box stores

Increase Don't know / No opinion Stay about the same Decrease

Changes trended from survey conducted April 3-April 5, 2020 and reflect change in “Increase”

Indeed, nearly a third (30%) of respondents expect to purchase more from online platforms in the following weeks


In the following weeks, do you think that the amount you purchase from each the following will increase, decrease, or stay about the same?

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Consumers are buying more in some categories, notably less in others

33%26% 26% 23% 21%

12% 9% 8% 8% 8% 6% 5% 5%4% 3%

15% 10%7%

11% 15%

13%

11%

29% 23%

8%

38% 17%

11%

25% 50%

Snack or junkfood

Non-alcoholicbeverages

Healthy food Ready-madeor microwave

meals

Personal careproduc ts

Alcohol Productspromotingrelaxation

Householdgoods

Electronics Meal-kitservices

Clothing Financialservices

At-homefitness

technology

Beautyproduc ts

Beautyservices

Purchasing more No change Purchasing less Never purchased

CATEGORY CONSUMPTION CHANGES

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Three reasons are behind higher consumption of the categories that 10% or more Americans have begun purchasing more

33%

29%

26%

45%

26%

67%23%

33%

21%

33%12%

28%

33% 28%

20%

42% 46%

33%

39%

27%12%

26% 18%

39%

Snack / junk food Non-alcoholicbeverages

Healthy food Ready-made meals Personal careproducts

Alcohol

This is not a necessity, but I want it more during social distancing and self-quarantining

This is not usually a necessity, but it is more necessary during social distancing and self-quarantining

This is always a necessity to me

Top reason category is being purchased more during the pandemic

% of US adults purchasing category more since COVID outbreak


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The reasons behind increased purchase today also directly inform how consumers will consume tomorrow

33%

11%

26%

8%

26%

12%

23%

8%

21%

9%12%

5%

13%13%

12%

9% 8%

5%

9%

5%2%

6%4%

3%



Alcohol

I will purchase this less than I did pre-pandemic

I will purchase the same amount of this as I did pre-pandemic

I will purchase this more than I did pre-pandemic



Post-pandemic purchase behavior

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Categories being purchased more because they’re considered necessities are sure bets: consumers anticipate purchasing at least as much - if not more - of these post-pandemic

33%

11%

26%

8%

26%

12%

23%

8%

21%

9%12%

5%

13%13%

12%

9% 8%

5%

9%

5%2%

6%4%

3%



Alcohol





% of US adults purchasing category more since COVID outbreakPost-pandemic purchase behavior

20

Categories not considered necessities but more desired at this time are strategic battles, as consumers expect to purchase less post-pandemic

33%

11%

26%

8%

26%

12%

23%

8%

21%

9%12%

5%

13%13%

12%

9% 8%

5%

9%

5%2%

6%4%

3%



Alcohol


Post-pandemic purchase behaviorI will purchase this less than I did pre-pandemic




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Categories not typically considered necessities but which are more necessary now create significant opportunity for brands

33%

11%

26%

8%

26%

12%

23%

8%

21%

9%12%

5%

13%13%

12%

9% 8%

5%

9%

5%2%

6%4%

3%



Alcohol


Post-pandemic purchase behaviorI will purchase this less than I did pre-pandemic




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Categories seeing the starkest declines in consumption can largely expect to see a return to pre-pandemic purchase levels

50%

13%

38%

14%

29%

12%

25%

10%

23%

10%17%

6%

32%

21%

15%13% 11%

9%

5%

3%

3%2%

2%

2%

Beauty services Clothing Household goods Beauty products Electronics Financial services




% of US adults purchasing category less since COVID outbreak

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But variances in consumer comfort levels suggest the return to “near normal” may not be quick

For more: When Consumers Say They’ll Feel OK About Dining Out and Other Activities, Morning Consult

https://morningconsult.com/2020/04/10/consumer-expectations-normal-activities-comfortable/

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Summing it up• Americans’ emotional, financial, and health-related strains are translating to new consumption

patterns – many of which will endure post-pandemic

• Companies have a responsibility to understand the role they’re playing in consumers’ lives during this unique time, and evolve their post-pandemic strategies to build off this reality

• Armed with this insight, brands can act on clear opportunities to be there for customers when the chips are down and, in doing so, build long-term relationships and long-term brand equity

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Favorited or Forgotten? A Look at If & How Consumer BehaviorWill Change Post-Pandemic

Victoria SakalMorning [email protected]

favorited or forgotten? › arf_knowledgebase › arf member only... · 2020-04-23 · generally...

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