consumer sentiment study - mckinney

CONSUMER SENTIMENT STUDYWave 2 // June 1, 2020

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Copyright © 2020 McKinneyCopyright © 2020 McKinney

Agenda

• About McKinney

• Quant Study

• Key Implications

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Copyright © 2020 McKinney

ABOUTMCKINNEY

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McKinney LAMcKinney Durham

McKinney NY

One agency, multiple

perspectives

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A mix of clients that span categories and audience segments


QUANTSTUDY

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Proprietary quant study(census representative population of

1,004 US adults for each wave)

Wave 1• Fielded 4/27-4/30• Stay-at-home orders still in effect• Some states had announced reopening plans

Wave 2• Fielded 5/22-5/26• Most states had partially reopened• Survey completed prior to nationwide protests

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1Mental health remains a key concern even during reopening

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46%

43%

40%

35%

35%

29%

25%

23%

21%

21%

20%

17%

15%

12%

9%

6%

5%

Uncertain

Frustrated

Anxious

Bored

Isolated

Hopeful

Depressed

Exhausted

Angry

Overwhelmed

Optimistic

Calm

Meh

Confident

Motivated

Inspired

Energetic

Which of the following describe how you currently feel during the COVID-19 pandemic? Select all that apply.

End of May

Source: McKinney Online Survey n = 1,004A/B statistically significant at 95% confidence; a/b 90% confidence

4%

6%

8%

11%

13%

19%

19%

20%

21%

24%

30%

31%

37%

40%

44%

45%

46%

Energetic

Inspired

Motivated

Confident

MehAngry

Calm

Exhausted

Optimistic

Overwhelmed

Depressed

HopefulBored

Isolated

Anxious

Frustrated

Uncertain


End of April

• Source: McKinney Online Survey n = 1,005• A/B statistically significant at 95% confidence; a/b 90% confidence

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Copyright © 2020 McKinneySource: McKinney Online Survey n = 2,008

A/B statistically significant at 95% confidence; a/b 90% confidence

However, with the world reopening, people are beginning to feel a little less isolated and depressed than they were a month ago

40%

30%

35%

25%

Isolated Depressed


Wave 1: April 27-28 [A] Wave 2: May 22-26 [B]

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• Older (55+) respondents expressed the most uncertainty while younger people (18-34) are just bored

• Feelings of anxiety, isolation and depression are significantly higher among people who identify as liberal

• Regionally, the Northeast follows a similar pattern

• People who live in urban markets are more confident and hopeful

• While having kids in the house is causing people to be more exhausted, those without kids feel significantly more uncertain

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2Fear of getting sick impacts all aspects of life

Concern over contracting COVD-19 has declined slightly over the past month


B49%

43%

Very / Extremely Concerned

Overall, how concerned are you about contracting COVID-19?


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Concern of a second wave of COVID-19 outbreaks remains high and has grown higher for the Summer 2020 time period

42%

62% 64%

A49%

65% 65%

Summer 2020 Fall 2020 Winter 2020-2021

How likely do you think there will be a resurgence of COVID-19 in the following time periods? % Top 2 Box Likely


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Over a third of people know someone who has been infected (or may have been), but this rate has not changed over the past month

Yes 27%

Maybe (suspected

but not tested) 10%

No 63%

Have you, or anyone you know personally, been infected with COVID-19?

26%

11%

62%

27%

10%

62%

Yes Maybe (suspectedbut not tested)

No

Have you, or anyone you know personally, been infected with COVID-19?


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Concern over contracting COVID-19 vary significantly based on personal situation

38%

AC49%

42%



18-34 [A] 35-54 [B] 55+ [C]

B47%

36% 41%

Bc49%



Northeast [A] Midwest [B] South [C] West [D]

BC52%

38% 40%



Urban [A] Suburban [B] Rural [C]

B48%

40%



Any Kids in HH [A] None [B]

43% 44%

AbC58%

32%



Caucasion [ A] African Am erican [ B] As ian / Pac Isl ander [C] Other [ D]

BC50%

39% 39%



Liberal Independent Conservative

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3Balance between health and the economy is starting to shift


Full-time 43%

Part-time (Non-student)

7%Full-time

student 4%

Homemaker7%

Retired 23%

Unemployed (due to

COVID-19) 8%

Unemployed (lost job prior to COVID-19)

4%

Furloughed (due to COVID-19) 4%

Please indicate your current employment status

Full-time 43%

Part-time (Non-student)

7%Full-time

student 4%

Homemaker7%

Retired 23%

Unemployed (due to

COVID-19) 8%

Unemployed (lost job prior to COVID-19)

4%

Furloughed (due to COVID-19) 4%

Please indicate your current employment status


Wave 1 Wave 2

For 16% of people, their employment status continues to be negatively impacted by the state of the economy

Majority of people who are unemployed don’t see the end yet


31%

49%

35%

56%

Likelihood to find a job(among unemployed)

Likelihood to return to job(among furloughed)

% Somewhat / Very Likely in the Next 2 Months


However, concern among those currently employed is declining


46%

b38%

B30%

21%

39%

34%

25%

17%

You will be forced towork reduced hours

You will be forced totake a pay cut

You will lose your jobtemporarily

You will lose your jobpermanently

% Somewhat / Very Likely in the Next 2 Months


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People are now more concerned about the impact on the economy and only 1/3 now believe limiting the spread of COVID-19 is more important than the economy

Limiting the spread of COVID-19

36%

These are equally

important 45%

Getting the economy

going again19%

Which do you think is most important?

43%

72%

Contracting COVID-19 The impact COVID-19 ishaving on the economy

% Very / Extremely Concerned About…

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Concern over the economy is more consistent, but is impacted by things such as age, ethnicity and political views

60%

A76%

A77%


Overall, how concerned are you about the impact COVID-19 is having on the economy?

18-34 [A] 35-54 [B] 55+ [C]

70% 71% 73% 73%




73% 72% 69%




70% 73%



Any Kids in HH [A] None [B]BD

75%60%

BD75%

55%




71% 67%

B76%




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The balance between health and the economy tilts based on where you live, who you are, and what you believe

bC43%

36%

21%

c36%

A45%

19%

30%

AB53%

17%

Lim iting COVID-19spread

Equal importance The econom y


18-34 [A] 35-54 [B] 55+ [C]

Bc43% 44%

13%

31%

d51%

18%

35%45%

a20%

36%42%

A22%





BC46%

35%

20%

31%

A50%

18%

32%

A50%

18%





36%44%

21%

36%47%

17%




Any Kids in HH [A] None [B]

33%

BcD49%

18%

A44%

34%

22%

A49%

37%

14%

39%34% ac

27%

Lim iting COVID-19Spread




BC50%

39%

11%

C36%

A48%

A17%

23%

A50%

AB27%





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Availability of vaccines and decreasing unemployment rates are the leading signals the country is on its way “back”

55%

53%

43%

42%

32%

32%

24%

22%

Vaccine available at-scale

Unemployment levels start going back down

Large-scale testing in place

Public spaces open

Tracing of infections occurs

More people are traveling

Live sports air on TV

Extended stock market ral ly

Which of the following will be a key signal(s) to you that the country is on its way “back”? Select all that apply.

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Emotions have shifted towards the economy as the lead indicator

49%

51% B

46% b

28% b

53% a

43%

42%

24%

Unemployment levels start going back down

Large-scale testing in place

Public spaces open

Live sports air on TV

Which of the following will be a key signal(s) to you that the country is on its way “back”? Select all that apply.


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4People are less willing to get back out than anticipated

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Completely reopened 7%

Partially reopened 80%

Full stay-at-home

restrictions 11%

I don't know / Unsure 2%

Do you think that your state's scheduled plan to re-open is coming too soon or too late?

The world has begun to reopen for most Americans


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While significantly more people in May think their state should reopen within the next month, almost half worry this plan is coming too soon

Too Soon 46%

About Right33%

Too Late 14%

Unsure 7%

Do you think that your state's scheduled plan to re-open is coming too soon or too late?

31%

B48%

B16%

5%

A41%

39%

12% a7%

Less than amonth

1-2 months 3-6 months 6 months orlonger

In your opinion, when should businesses reopen in your state?


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While the states are opening up, people are not quite ready to open their homes in the way they expected to last month

59% B

25%

37% B

20% B

14% B

8% b

8% B

38%

42% A

20%

13%

11%

6%

5%

Family (who don’t currently live in your home)

No one

Friends

Neighbors

Contractors (e.g.,, painters, HVAC repair, etc)

Co-workers

Children’s friends

Who will you let in your home in the first weeks that restrictions lift (Wave 1) vs. Who have you let in your home in the past two weeks? (Wave 2)


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Most people continue to fall somewhere in the middle in how conservative they feel they will be as things re-open

7%

8%

21%

24%

29%

35%

26%

20%

16%

13%

When your state re-opens, howconservative do you plan on being in

terms of social distancing?

When your state re-opens, howconservative do you plan on being in

your spending?

As your state reopens, how conservative do you plan to be when it comes to…

Not at all Somewhat Moderately Very Extremely

39%

32%

42%

32%

Social Distancing Spending

As your state reopens, how conservative do you plan to be when it comes to…

% Very / Extremely


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People are still fairly tentative about their willingness to get back to normal right away

42%

32%

23%

22%

16%

14%

12%

11%

33%

31%

30%

26%

26%

25%

22%

21%

14%

19%

19%

18%

23%

20%

22%

21%

11%

18%

29%

34%

35%

40%

45%

47%

Shop at retail (non-essential svc.)

Dine at Restaurant

Take a taxi / Uber

Ride on public transportation

Stay at a Hotel

Attend a sporting event

Fly on a plane

Attend a concert

How soon after restrictions are lifted would you be willing to do each of the following?

(Among respondents who the category is relevant to)

Less than 1 month 1-2 months 3-6 months 6 months or longer

Respondents are less sure about dining out, but slightly more willing to travel and attend sports quickly


b34%

13% 12%10%

30%

A19% A

16% A13%

Dine at Restaurant Stay at a Hotel Attend a sportingevent

Fly on a plane

% Willing in Next Month


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33

5Home is still where the heart –and wallet – is

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People are going to want to spend on gifts, vacations, home and entertainment in the second half of the year

11%

12%

19%

19%

29%

35%

36%

36%

46%

Jewelry

None of the above

Video games / eSports

Toys for children

Food delivery services

Entertainment platforms (e.g.,, Netflix, Disney +, etc)

Vacation

Home improvements

Holiday gifts

Which of the following products / services do you anticipate spending on in the second half of the year? Select all that apply.

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There were slight declines in expected jewelry and video game purchases; all other categories remained consistent

20%b

12%B

18%

9%

Video games / eSports

Jewelry

Which of the following products / services do you anticipate spending on in the second half of the year? Select all that apply.


The majority of sports fans will watch events even without the crowds, with a significant increase in the last month

Yes 62%

No 38%

Did you regularly watch sporting events on TV prior to COVID-19?

36%

a41%

Definitely yes

Will you watch live sports if there is no crowd / crowd noise?



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• Discretionary spending (holiday gifts, home improvements, vacations) are largely correlated to political views, with conservatives much more open to discretionary spending

• No matter who you are, what you believe, or where you live, the same percentage of people anticipate spending money on a vacation

• Urbanites are much more likely to pay for entertainment platforms

• People 35+ are significantly more likely to watch live sports without fans in stadiums

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KEYIMPLICATIONS

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1. In a state of uncertainty, brand trust has never been more critical

2. As time goes on, there will be an increasing variance in perspectives

3. A potential “second wave” will be viewed differently than the first

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C O N T A C T—

Joe Maglio | Chief Executive Officer [email protected]

Thank you.

DURHAM318 Blackwell St

Durham, NC 27701

NEW YORK112 West 20th St

New York, NY 10011

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consumer sentiment study - mckinney

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