# data[].attributes.body
Discuss your research and build into the 'so what'... what should marketers do in post covid world to take advantage of attitudes?

# data[].attributes.body
Consider research into how attitudes are formed - how you marketers influence our attitudes / build brand attitudes?

# data[].attributes.attachment_link.readable_text
Coronavirus in United States.
Getty

Companies and marketers are in uncharted waters. The coming COVID-19 recession is something we haven't seen since the Great Depression. With 16 million unemployed in just 2 weeks, and an almost nationally enforced "shelter in place" policy, all economic activity is at a standstill. Most downturns are the natural result of the business cycle, when the economy stops growing. This is certainly not an ordinary downturn. The economy was healthy and growing, generating full employment. Then, overnight, it was switched off.

Despite the unprecedented $2 trillion stimulus, it may not be as easy to switch it on again. The disruptive nature of COVID-19 will erode our confidence in institutions and keep society on edge. Consumers will respond to the uncertainty more cautiously by reducing their spending. As two-thirds of GDP is made of consumer spending, which is the heart of our economy, sales will drop and markets will contract. Most recessions last 12-24 months, but the COVID-19 recession will, most likely, last much longer.

Businesses are already cutting costs, streamlining product portfolios, improving affordability, and postponing new investments. Advertising expenditures, untethered and therefore easy to cut, will be slashed across the board indiscriminately to protect the bottom line. These are the key recession tactics:
Streamlined portfolio
When faced with declining demand, marketers should continue to reduce excessive complexity in product lines that feature too many marginally performing SKUs, including flavors or meaningless differences among product lines. Overly broad product lines soak up marketing support and tie up resources and working capital in slow-moving inventory.
Flex pricing
In tough times, discounts that require little effort from consumers and give cash back at the point of sale are more effective than delayed-value promotions such as sweepstakes and mail-in offers. However, consumers' perceptions of pre-discount "normal" prices must be monitored to avoid excessive promotions. Too low expectations about prices can threaten profitability in the recovery period because people will resist the steep increases, as prices return back to "normal."
Emotional bonding
Anxious consumers cling to familiar, trusted brands as a safe haven. In a recession, purposeful advertising and comforting messages that reinforce an emotional connection with the brand, as well as demonstrate empathy, are vital. In a recession, brands tend to increase investment in more measurable areas such as digital advertising, price promotion, and point-of-purchase marketing. However, broadcast media still remains important nevertheless. Brands that are out of sight on the television screen will sooner or later be out of mind for a large percentage of consumers.
Disproportionate SOV
During recessions, cash-strapped marketing departments have historically always been under pressure to do more with less along with the requirement to demonstrate high returns on investment. In past downturns, brands that were able to increase share of voice beyond their share of market, by maintaining or increasing their advertising spending, captured market share from rivals. What's more, they did this at lower cost than when times were good, and their share advantage was maintained during the recovery.
Data-based culture
In deciding which marketing tactics to employ, it's critical to track customers priorities, from reallocating budgets, switching among brands and product categories, to redefining value. Targeting becomes critical, and so, it is essential to understand customers' behavior and attitudes. It's therefore important to continue investing in a data stack. Discipline around data-based marketing developed during the recession will continue to serve companies when the economy recovers.
Pipeline of innovation
This may be a long, difficult slump, yet marketers should be in a position to respond quickly to the recovery when it comes. This means, for example, having a pipeline of innovations ready to roll out on short notice. Most consumers will be ready to try a variety of new products once the economy improves. Marketers that wait until the economy is in full recovery to ramp up will be at the mercy of better-prepared competitors.

After most recessions had ended, consumers' attitudes and behaviors often return to "normal" within a couple of years. This time it may be different. Given the unprecedented extreme events we are witnessing, consumers' optimism just might be replaced by a heightened sense of economic vulnerability. Caution might replace consumerism, and this could persist for a decade or longer.

Given these facts, there is a good possibility that consumer attitudes and behaviors, shaped during this recession, will linger substantially beyond its end, as we enter a new national phase, America 2.0. The majority of consumers may well retain the different consumption habits developed during the recovery with what they've adapted to during the recession. Marketers should prepare now for a possible long-term shift in consumers' values and attitudes. The recovery might still resemble the recession and, therefore, tried and true marketing tactics from previous recoveries may not be that relevant.

... Read More

# data[].attributes.attachment_link.title
Consumer Attitudes And Behavior Will Change In The Recession, And Persist When It Ends

# data[].attributes.attachment_link.description
Companies and marketers are in uncharted waters. The coming COVID-19 recession is something we haven't seen since the Great Depression. With 16 million unemployed in just 2 weeks, and an almost nationally enforced "shelter in place" policy, all economic activity is at a standstill.

# data[].attributes.body
When people smoke (a behaviour), they know smoking can cause health issues such as cancer (cognition) - this is known as cognitive dissonance.

# data[].attributes.body
What has caused attitudes to change? How can this affect both businesses and marketers? How could it be improved?

To use - attitudes are not controlled (dependent on the person - only an individual can control their attitude), trends are beneficial for marketers to know in order to adapt and serve for attitudes relating to specific brands.

# data[].attributes.body
Applying theory to consumer sentiment/actions - IBIS WORLD, FORBES - change of attitudes study (e.g. Covid)

# data[].attributes.attachment_link.readable_text
Consumers attitudes, behaviors and purchasing habits are changing-and many of these new ways will remain post-pandemic.

While purchases are currently centered on the most basic needs, people are shopping more consciously, buying local and are embracing digital commerce.

To manage isolation, consumers are using digital to connect, learn and play-and they will continue to.

Moving forward, we will see an increase in the virtual workforce as more people work from home and enjoy doing so.

New consumer behaviors will transform the industry's future

The COVID-19 pandemic has fundamentally changed the world as we know it. People are living differently, buying differently and in many ways, thinking differently. Supply chains have been tested. Retailers are closing doors. Consumers across the globe are looking at products and brands through a new lens.

The virus is reshaping the consumer goods industry in real time, rapidly accelerating long-term underlying trends in the space of mere weeks. Our research indicates that new habits formed now will endure beyond this crisis, permanently changing what we value, how and where we shop, and how we live and work.

Even as this crisis continues to evolve, by exploring the changes that are happening now, we can consider what consumer goods businesses should do today to prepare for what's next.

Getting to know the consumer in crisis

Consumers are deeply concerned about the impact of COVID-19, both from a health and economic perspective. People are responding in a variety of ways and have differing attitudes, behaviors and purchasing habits. People across the globe are afraid as they strive to adapt to a new normal. Fear is running high as individuals contemplate what this crisis means for them, but more significantly, what it means for their families and friends, and society at large.

Consumers are responding to the crisis in a variety of ways. Some feel anxious and worried, fueling panic-buying of staples and hygiene products. At the other extreme, some consumers remain indifferent to the pandemic and are continuing their business as usual, despite recommendations from government and health professionals. CPG companies will need to understand how their own consumers are reacting, and develop customized and personalized marketing strategies for each. The days of one-size-fits-all marketing are over.
Consumers are more fearful of the economic impact of COVID-19 than for their health

Source: Accenture COVID-19 Consumer Research, conducted April 2-6. Proportion of consumers that agree or significantly agree.

New buying behaviors in this new normal

Why, what and how consumers buy is changing due to the COVID-19 outbreak. Consumer priorities have become centered on the most basic needs, sending demand for hygiene, cleaning and staples products soaring, while non-essential categories slump. The factors that influence brand decisions are also changing as a "buy local" trend accelerates. Digital commerce has also seen a boost as new consumers migrate online for grocery shopping - a rise that is likely to be sustained post-outbreak.

In times like these, our need for the basic necessities of life takes precedence. It comes as no surprise that personal health is the top priority for the consumers we surveyed, followed by the health of friends and family. Food and medical security, financial security and personal safety were other leading priorities.

New-and everlasting-shopping habits

The outbreak has pushed consumers out of their normal routines. Consumers are adapting new habits and behaviors that many anticipate will continue in the long term.

The virus has accelerated three long-term trends:

The ever-increasing focus on health

CPG brands should heed this change and make it a priority to support healthy lifestyles for consumers, shoppers and employees. Having a "health strategy" will be a strategic differentiator for the foreseeable future.

A rise in conscious consumption

Consumers are more mindful of what they're buying. They are striving to limit food waste, shop more cost consciously and buy more sustainable options. Brands will need to make this a key part of their offer (e.g. by exploring new business models).

Growing love for local

The desire to shop local is reflected in both the products consumer buy (e.g. locally sourced, artisanal) and the way they shop (e.g. supporting community stores). CPG brands will need to explore ways to connect locally - be it through highlighting local provenance, customizing for local needs or engaging in locally relevant ways.

Consumers expect their shopping habits to change permanently

Source: Accenture COVID-19 Consumer Research, conducted March 19-25 and April 2-6
Click to enlarge

The COVID-19 outbreak has slowed the pace and changed daily life for many consumers, and this is having a profound impact on the way we view personal hygiene, health and how we engage with our communities, friends and families. People are embracing technology more than ever to support all aspects and consequences of isolation. There is also positive evidence to suggest that this crisis will build communities, rather than separate them.

of consumers feel more or as connected to their communities

of consumers expect these connections to stay intact long after the virus is contained

The ways in which people spend their leisure time are changing because of the outbreak and related social distancing measures, and again, these habits are likely to be sustained. More than half (61%) plan to continue watching more news after the outbreak, while 55% will prioritize more time with family. Entertainment, learning and DIY have also seen a rise.

This trend is reflected in the types of apps that consumers are downloading, related to entertainment, news, healthcare and education. Underlying consumer needs (e.g. to connect, to be entertained, to learn, to be informed) remain the same, yet technology is changing the way it happens. CPG companies must increase their focus on digital vs. traditional tools to engage with consumers and improve experiences.

People are working from home as businesses close doors and encourage remote work. Many employees who have not worked remotely before-or not often-plan to do so more frequently in the future. High percentages of employees feel they have the right environment and tools for remote work, but some miss social contact. Overall, employees feel their employers have taken the right steps to protect their health and keep them well informed.

Employees who now find themselves working from home are broadly positive about the experience. Unsurprisingly, those who worked from home previously are more likely than newcomers to feel they are more productive at home and feel they are more professionally satisfied than they are in the office . CPG companies that have a virtual working strategy will strengthen their employee value proposition and show that they are in-touch with their employee preferences.

of people who never worked from home previously now plan to work from home more often in the future

Change in work-from-home frequency from pre- to post-outbreak

Source: Accenture COVID-19 Consumer Research, conducted April 2-6, N = 1,118 respondents working from home

Staying connected with consumers

COVID-19 is a health and economic crisis that has a sustainable impact on consumer attitudes, behaviors and purchasing habits. CPG companies can adapt to these changes by taking action to respond, reset and renew to be positioned even stronger for the future.

Stay in the know with our newsletter

# data[].attributes.attachment_link.title
COVID-19: Fast-changing Consumer Behavior | Accenture

# data[].attributes.attachment_link.description
Accenture reports the impact of coronavirus (COVID-19) on consumer behavior and how it will transform the future of the consumer goods industry. Read more.

# data[].attributes.attachment_link.readable_text
Abstract

The consumption of store brands is increasing in the European Union. In Spain it represents 12.4% of the total food shopping. In order to understand this phenomenon better a consumer study was undertaken using 610 consumers from all over Catalonia. The consumers filled in a questionnaire made up of 32 questions based on a simplified model of the Theory of Reasoned Action of Fishbein and Ajzen. The components included in the model were Past Behaviour (2 questions), Attitudes (5 questions), Beliefs (9 questions) and their Evaluations, simplified Neophobia/Neophilia scale (4 questions) and the importance of the special offers. The salient beliefs were obtained from two previous focus groups: one group of professionals and one group of consumers. The results obtained showed a good internal consistency (Cronbach alpha coefficient) in all the multi-item components of the model except for the beliefs. A non-unitary structure of beliefs was detected, although it does not represent a serious problem since consumers do not necessarily have to show consistent beliefs. Most consumers believe that store brands are reliable, different from the brands of the manufacturer and are good value for money. Their quality perception depends on the store, and in general, when the price is the same, the brand of the manufacturer is chosen in accordance with its higher quality image. In several components of the model a clear consumer segmentation was observed depending on the sex of the consumer. In general, women showed a more positive attitude towards store brands than men. Beliefs were bad predictors of attitude, probably due to their non-unitary structure. The most important component in the model predicting behavioural intention was attitude, special offers also being a significant factor. Based on the results obtained, it seems that consumers have clear beliefs about store brands, but probably at the supermarket they will behave in ways that do not necessarily correspond with their beliefs.

View full text

# data[].attributes.attachment_link.description
The consumption of store brands is increasing in the European Union. In Spain it represents 12.4% of the total food shopping. In order to understand this phenomenon better a consumer study was undertaken using 610 consumers from all over Catalonia.

# data[].attributes.body
For instance - Samsung consumers (not a fan of Apple products) - Nike consumers (majority are sportsmen/women)

# data[].attributes.attachment_link.readable_text
From geek talk to popular alternative

The past decade is widely known as the time of smartphones. The whole world is slowly forgetting the PC and migrating to pocket devices. Your bank accounts, family albums, your work, and basically any virtual part of your life fits in your palm.

Apple's iPhone debuts in 2007, and quickly take the world by storm. The first modern smartphone is accepted as a sign of prestige and accomplishment. A year later, Apple launches the first-ever app store, with around 500 original applications. The cell phone industry is hit by another revolution.

At that time, Apple is so far ahead of other manufacturers, the alternatives seem stuck in the Stone Age. Industry leaders like Nokia, Simens, and Motorola face an existential crisis from which the companies might never recover. Samsung is dealing with flip phones and geek talk.

Samsung is then a big player in consumer electronics, and the company makes four times the revenue of the Cupertino company (Apple.) Things are about to change in 2007 with the iPhone revolution. Apple's revenue and profits skyrocket, and the company takes the throne as the wealthiest public company in the world.

The past decade is marked by constant jabs between iPhone and Samsung users. Samsung holds the top market position for nine consecutive years, unrivaled until the recent rise of Huawei. Apple settles in the third place , fluctuating between 10 and 14% share of the market. Even though Samsung sells more units, Apple makes more money.

Samsung phones are known as the Matrix geek gadgets hardly anyone likes. But when the company gets serious about marketing, it leaves the iPhone in the rear window, judging by the units sold.

# data[].attributes.attachment_link.title
How Samsung Beat Apple in the Smartphone World

# data[].attributes.attachment_link.description
The past decade is widely known as the time of smartphones. The whole world is slowly forgetting the PC and migrating to pocket devices. Your bank accounts, family albums, your work, and basically any virtual part of your life fits in your palm. Apple's iPhone debuts in 2007, and quickly take the world by storm.

# data[].attributes.body
Include relevant theories/models of Attitude - e.g. ABC Model (Eagly & Chaiken 1998), Cognitive Dissonance Theory (Leon Festinger 1957).

# data[].attributes.body
A short introduction into Attitudes - what is the concept? include the definition and mention how attitudes are learned - why are attitudes important for marketers?