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Consumers on EdgeUnderstanding The Changing Dynamics of
Consumer Purchase Decisions
To learn more MKT-IQ.COM
Contents
Marketing IQ2Consumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
3 Introduction
4 U.S. Households in Economic Retreat
5 The New Customer Experience
7 Changing Purchase Decision Drivers
9 Effects of Taking a Stand on Racial Justice
11 Conclusions
12 Research Methodology
13 Appendix Research Data Tables
3 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
U.S. consumers are on edge. Faced with unemployment higher than at the peak of the Great Recession, a record-breaking decline in GDP, a toxic political atmosphere, and a global pandemic, it is no wonder that consumer behavior has changed. Yet, they remain hopeful.
Customers are still buying, and consumers are still consuming. They are just doing so differently. To better understand how purchase decision making has changed because of the pandemic, we asked U.S. consumers about their purchase decision drivers, household economics, consumption behaviors, and views on brands taking a stand on racial justice. Individual decision driver questions were focused on the consumer packaged goods (CPG) industry as those brands should be more top of mind due to a high purchase frequency, recent product shortages, and calls for boycotts. Please note, we delineated between customers (people who buy) and consumers (the overall market) to better convey how individual insights apply.
Despite this CPG focus, we believe how and why decision making has changed may very well be applicable to general retail, apparel, dining, and other industries. The new engagement behaviors and household fiscal reactions to Covid-19, and the ensuing recession, provide valuable insights far beyond the consumer space.
This new research demonstrates:
How large a role the risks associated with Covid-19 plays in purchase decision making
The rising importance of the convenience decision driver
The scale of forced and budget-driven brand switching
Changes to household spending behavior
Rapid shifts in engagement behaviors
The impact of brands taking a stance on racial justice
We hope you find this research informative and invite you to contact us regarding any research you may be interested in conducting.
Thank you,
Marc Shull
Founder & Chief Consultant | Marketing IQ
Introduction
48% of respondents reported having
delayed a major purchase in
response to Covid-19 and its
economic effects
81% of respondents tried alternative
brands due to product availability
issues or to save money
4 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
Household fiscal reactions to the recession brought on by the pandemic and the associated increase in unemployment cannot be understated. Belt tightening behaviors have been prevalent across all economic sub-segments of the U.S. consumer base, some out of fear and some out of necessity. 59% of respondents reported being more cautious with their finances by adopting household budgets, delaying major purchases, or buying alternative products at lower price points. Overall, 19% said they started using a household budget, with those most likely to adopt a budget being those with an annual household income of less than $25,000 (34%) and those experiencing a decline in spending (25%). However, this behavior was not limited to lower income households, as
38% of those who started using a budget had a household income greater than $50,000.
To cope with a reduced income, or self-imposed budget, customers started looking for lower priced alternatives to the brands they usually purchase. Two in five survey respondents (41%) reported buying different brands to try to save money. This behavior was noticeably higher among households which reduced their spending, those with incomes under $50,000, those under the age of 30, and women. With most consumer packagedgoods marketing geared toward women, it should be noted that they reported being 32% more likely to buy different brands to save money and 11% more likely to delay a major purchase than men. To a lesser degree, this switching behavior also appeared in affluent households and those not experiencing financial hardship with no fewer than 22% shopping for lower price brands in all audience segments analyzed.
Delaying major purchases was the most common fiscal tactic identified by our research. Nearly half of the respondents surveyed (48%) reported having delayed buying appliances, vehicles, and other higher priced items. This behavior was reported across all demographic, political, and economic spectrums including:
40% of households earning more than $100,000 a year
44% of those with stable household spending behaviors
71% of those who reported a decline of 20% or more in their household spending
Overall, this research indicates that the abrupt shift in many household financial situations, and the general uncertainty about the economy, has had a direct impact on the purchase decision making process, even among those whose financial situation has not changed. Brands should be cognizant of this when considering price changes, value positioning, direct to consumer offerings, and retention and acquisition strategies.
54% of respondent households have
decreased their spending since
the outbreak of Covid-19
U.S. Households Are In Economic Retreat
Changing Household Financial Management
Question: Which of the following, if any, has the Covid-19 pandemic and the associated economic downturn caused you to do?
Female Male <$25K $25-$49K $50-$99K $100K+
Bought Alternative Brand(s) to Save Money 41.3% 45.7% 34.7% 40.4% 52.7% 36.4% 22.2%
Started Using a Household Budget 18.7% 17.9% 19.8% 34.0% 14.9% 21.2% 4.4%
Delayed Major Purchases 47.6% 49.7% 44.6% 44.7% 45.9% 50.0% 40.0%
Household Economic ReactionsU.S.
Average
Gender HH Income
5 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
The health, economic, and social changes brought on by the pandemic havefundamentally altered how, why, and where customers interact with brands. For many industries, the pandemic has helped move customers online more effectively than individual brand marketing efforts were able to do, while simultaneously smashing the traditional brand loyalty dynamics and CPG competitive landscape. With 83% of respondents reporting they changed one or more surveyed behaviors, this research identified four primary reasons why customer experience has changed:
Reduced access to physical retail locations
Product shortages
Financial pressures driven by recession & unemployment
Concern for contracting Covid-19
Even at grocery, pharmacy, and club stores which remained open, increased restrictions such as occupancy limits, mask wearing, time in-store, distancing, reduced acceptance of cash, and changing rules reduced the ease of access and created a frustrating customer experience. With online shopping infrastructures already in place for most CPG retailers, the shift to online buying was a viable alternative for many customers, even if it was the first time they had engaged or purchased through that channel with a given retailer.
Online grocery shopping, which has traditionally struggled in the United States, saw a massive increase in online sales with 43% of respondents trying online grocery ordering for delivery or pick up for the first time. Demand in the grocery shopping channel grew across all gender, income, and age groups. 55% of those rating Risks Associated with Covid-19 as the top decision driver tried online grocery shopping. Even among those that rated Risks Associated with Covid-19 as the least important decision driver, 25% reported they tried it.
The pandemic and ensuing effects has made CPG customer loyalty more challenging than ever. With initial panic buying leading to shortages in some CPG categories, 74% of respondents reported they had to buy different brands because those they normally purchased were unavailable, an unprecedented level of forced brand switching. Compounded with efforts to reduce household spending, 81% reported switching brands from those they regularly bought.
The New Customer Experience
Changing Consumer Engagement and Switching Dynamics
81% of respondents tried alternative
brands due to product availability
issues or to save money
Female Male <$25K $25-$49K $50-$99K $100K+
Bought Alternative Brand Due to Lack of Availability 73.8% 76.8% 69.3% 68.1% 71.6% 74.2% 77.8%
Used Grocery Delivery or Pickup for First Time 43.3% 47.7% 36.6% 53.2% 36.5% 42.4% 46.7%
Started Using a New Shopping App 26.2% 29.8% 20.8% 36.2% 18.9% 24.2% 26.7%
Started Using a New Streaming Service 23.4% 20.5% 27.7% 31.9% 20.3% 22.7% 17.8%
None of the Above 17.5% 13.2% 23.8% 19.1% 13.5% 15.2% 22.2%
New & Changing Consumer ExperiencesU.S.
Average
Gender HH Income
Question: Which of the following, if any, has the Covid-19 pandemic and the associated economic downturn caused you to do?
6 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
83% of respondents reported having
changed shopping behaviors in
response to Covid-19 and its
economic effects
With an increasingly frustrating customer experience at “essential” retailers and the closure of many non-essential retailers, many customers were driven to find their brands elsewhere and to try new retailers, brands, and channels. Beyond CPG-specific retail, 26% of respondents reported using new shopping apps to help them meet their needs. The use of new shopping apps was highest among lower income households (36%), respondents under the 45 years of age (35%), and those looking for brands that are environmentally responsible (32%) or support racial justice efforts (35%). Even among respondents over the age of 60, a traditionally less digitally engaged audience, 22% started using new shopping apps.
Marketers should also take note that consumers have changed where they engage with advertising. With more time spent at home, it is not surprising that 23% of our respondents added a new streaming service since the outbreak. Demographically, this was most common with males (28%) and those age 30-44 (34%), although double-digit increases were observed across all analyzed audiences.
The purchase decision drivers and behavioral influences identified in this research do not support the customer experience ever fully returning to its previous state. Important considerations in determining the timing and degree to which the customer experience will revert to a pre-pandemic form are:
How well brands and retailers adapt their business models to provide a quality and valuable online customer experience relative to their pre-pandemic in-store experience
How long the recession and associated changes in spending behaviors lasts
The creation and distribution of a vaccine for Covid-19
The New Customer Experience
7 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
6.0 -3%
6.0 -2%
5.7 7%
5.3
5.2 4%
5.1 -2%
4.8 -2%
4.2 -4%
3.8 8%
-10% -5% 0% 5% 10%
Price / Value for Money
Quality
Convenience
Risks Associated with Covid-19
Discount Offered
Trusted Brand
Reviews and Recommendations
Environmental Impact
Brand Position on Racial Justice
% Change - Pre to Post Pandemic
Following months of economic and social uncertainty, mass migration to online buying, and dramatic changes to the day-to-day life of the average consumer, the factors influencing how customers make their purchase decisions have meaningfully, if subtly, changed. The introduction of the Risks Associated with Covid-19 driver shows it to be an important new factor for most customers, yet the traditional top decision drivers: Price / Value for the Money and Quality remained dominant. Beyond the introduction of this new driver, the changes identified with Convenience, Discount Offered, Environmental Impact, and a Brand’s Position on Racial Justice are highly reflective of the times and provide important insights into the rapidly evolving mind of the customer.
The ability for a new decision driver to rank as the 4th most important driver speaks to the impact the pandemic has had on purchase decision making and our lives in general. With 67% rating it a 5 or higher on a 7-point scale, easily displacing mainstays like Discount Offered, the Risks Associated with Covid-19 driver scored 40% higher, on average, than the driver which arguably has the next highest public profile and increased the most (8%) in our survey, a Brand’s Position on Racial Justice. While both are politically polarizing, the health risks associated with Covid-19 is impossible to ignore during any trip to the store.
In a country where customers are more likely to be burdened by too many choices, the inability to find basic household goods, like toilet paper, was a new and frustrating experience for the typical U.S. customer. Therefore, it was not surprisingConvenience, the ease of finding what a customer is looking for, saw growth of 7% since the start of the pandemic which effectively moved it from a 2nd tier decision driver into contention with Quality and Price / Value for the Money. As 74% of survey respondents reported they bought alternative brands due to availability issues, it is also not surprising that all analyzed segments noted an increase in the importance of Convenience, while traditional drivers like Trusted Brand and Price / Value for the Money have become somewhat less important.
Environmental Impact saw the greatest decline in importance of any decision driver at -4%, with some segments seeing a decline of more than -12%. The two analyzed audiences with the largest decline in importance for Environmental Impact were those age 30-44 (-12%), and those who said they would continue to buy from a brand which took a racial justice or another political stance with which they disagreed (-12%).
Changing Purchase Decision Drivers
Changing Priorities (%) and Overall Importance
(#) of Purchase Decision Drivers
% change indicates the change in importance from pre- to post-pandemic outbreak. Red indicates a decrease and blue an increase. The number indicates the overall post-outbreak average importance on a 1 (low) to 7 (high) scale.
8 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
With brands like Nike, Goya, and the NFL in the news regularly for positions they have taken, or not taken, on racial justice issues and the calls for boycotts, it might be natural to conclude this decision driver has taken on a more prominent role in the purchase decision making process. What the research uncovered was a little more complicated. Results showed that while the importance of this driver increased more than any other in the survey (+8%), it remained the least important decision driver overall and by a relatively wide margin. Furthermore, analysis of the Top and Bottom 2-Box (table below) showed this driver to be the most polarizing as can be seen in the table below.
Purchase decision drivers are in a state of unprecedented change. These changes may be exacerbated with a second wave of infections, or with a new shut down, and will likely see additional changes when an effective vaccine is eventually implemented. What is clear is how brands address the increased focus on convenience and minimize the risk of Covid-19 to their customers are now key aspects of the purchase decision making process.
79% 78%
48% 41% 48% 42%
21% 26%
1% 1% 1% 5% 4% 7%
38%
13%
71% 71%60% 53% 46% 45% 40%
26% 26%
2% 2% 3% 12% 7% 4% 11%
34%18%
Quality Price / Value forMoney
Convenience Risks Associatedwith Covid-19
Discount Offered Trusted Brand Reviews andRecommendations
Brand Position onRacial Justice
EnvironmentalImpactR
ank
-To
p &
Bo
tto
m 2
-Bo
x
Top 2-Box Pre-Pandemic Bottom 2-Box Pre-Pandemic Top 2-Box Post-Pandemic Bottom 2-Box Post-Pandemic
Changing Purchase Decision Drivers
Changing Purchase Decision Driver Priorities:
Pre & Post Pandemic Top & Bottom 2-Box
Question: Thinking about your consumer packaged goods purchases before [after] the Covid-19 pandemic started, how important were the following to your purchase decisions?Note: The Top 2-Box groups the two highest ratings, in this case those that rated a decision driver a 6 or 7 on the 1 -to-7 point scale. The Bottom 2-Box groups 1 and 2 ratings. This is done to reduce volatility and to demonstrate the volume of responses at the extreme ends of the scale.
9 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
Boycotts are nothing new. However, in today’s social climate, with an increasingly polarized electorate and an unprecedented level of support for the Black Lives Matter movement, more brands are being pulled into the fray as some consumers demand brands take a stand. As a purchase decision driver, a Brand’s Position on Racial Justice saw the greatest increase in importance of any driver, yet remained the least important overall. Genuine brand altruism in support of social and racial justice does not appear to represent a long-term threat to most brands. However, taking a stance does encourage trial of competitive brands as evidenced by 36% of respondents stating they reduced or stopped buying from a brand because of their position on an issue.
Nearly one in four respondents (24%) indicated a Brand’s Position on Racial Justice was more important to their purchase decision making now than it was prior to the pandemic. Overall, it has grown in importance, on average, by 8% outpacing all other surveyed drivers, most of which saw a decline from pre-pandemic to now. This increase was tempered by the 9% who stated this driver was now less important. Furthermore, as a driver it remains in last place trailing Environmental Impact, which experienced the largest importance decline of any purchase decision driver. Results also showed there are consumers who look unfavorably on brands taking any stances on social and political issues, as such, any position a brand takes on a politically charged topic will result in some portion of their customer base being upset.
Effects of Taking a Stand on Racial Justice
78%said they would continue, or could be
convinced, to buy from a brand
whose position on racial justice or
other political issue they disagreed
Loyalty & Reactions When Disagreeing with a Brand's Racial Justice or other Political Stance
No
Would Not
Buy
If No Other
Options
Depends on
Brand/Product
With a
Discount Would Buy
Actively Protested Against Brand 5.9% 8.3% 6.7% 5.0% 11.5% 0.0%
Reduced / Stopped Spending with Brand 36.1% 51.7% 48.3% 27.5% 34.6% 4.4%
Threw Out / Destroyed / Donated Brand's Products 7.4% 15.0% 3.3% 1.3% 23.1% 2.2%
Spread Negative Word-of-Mouth About Brands 14.1% 26.7% 18.3% 5.0% 7.7% 4.4%
Nothing, Still Buy from Brand as Usual 33.1% 3.3% 20.0% 26.3% 30.8% 84.4%
Brands I Buy Have Not Taken Stances I Disagree With 29.4% 35.0% 26.7% 40.0% 11.5% 6.7%
Took An Action (1+ of Above Actions) 44.2% 61.7% 53.3% 31.3% 57.7% 11.1%
Don't Care or No Disagreement 55.0% 28.3% 40.0% 58.8% 38.5% 86.7%
Would Respondents Buy From a Brand They Disagreed With?
Maybe Yes
Actions Taken When They Disagreed with a
Brand's Racial Justice or Other Political Stance
Overall
Average
Questions: If a consumer packaged goods brand you regularly buy takes a public stance on racial justice or another political matter you disagree with, would you continue to buy from them? What actions, if any, have you taken against consumer packaged goods brands you regularly buy, who have made a public stance regarding racial justice or a political matter you disagree with? (Select all that apply)
10 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
Research results indicated when it comes to making purchase decisions for consumer packaged goods, the majority of consumers either do not prioritize racial justice, environmental impact, or other political stances brands take or they are willing to overlook disagreements for financial reasons, a lack of alternatives, or even a coupon. Even for consumers who boycott brands that take positions they disagree with, respondents signaled their adherence to boycotts is limited and fleeting in many cases.
To be sure, there are some ardent protesters, and with 44% stating they had taken some form of action in protest to a brand previously purchased, the short-term impact can be substantial. Overall, 22% named at least one brand they were boycotting. However, passive protest appears to be substantially more common than active protest, with only 6% reporting they had actively protested a brand compared to 36% who only said they reduced or stopped buying. Of those who stated they had taken some form of action in protest of a brand, 71% said they were boycotting a brand with half (52%) of mentions concentrated among just 6 brands: Goya, Nike, Home Depot, Chick-fil-A, NFL, and Target.
In most cases, boycotting of individual CPG brands appears to be short-lived. By far, Goya, which has recently been in the news, was the most mentioned boycotted CPG brand with 63% of CPG mentions, while perennially boycotted brands like Chick-fil-A (11%) and Hobby Lobby (4%) were mentioned far less. When asked to name any brands, CPG or otherwise, they were boycotting, respondents named non-CPG brands 77% of the time and the pattern of naming brands recently in the news was
also observed. The brands most often tied to the Black Lives Matter movement, Nike (17%) and the NFL (7%), also found themselves among those brands most mentioned.
What is clear is economic woes eclipse ideology when it comes to putting food on the table. Respondents who decreased their household spending, or had an annual household income of less than $25,000, had an average or stronger prioritization of a Brand’s Position on Racial Justice but were noticeably more likely to continue to buy from, or return to, a brand they disagreed with. For example, low income households were 80% more likely than the overall respondent base to return to a brand if provided a discount.
Brands, which are better able to deliver across all purchase decision drivers, including those that can be overwhelmed by economic factors, will find a larger portion of the market open to switching to their brand than would have been the case before the pandemic. However, brands should be aware that taking a public stand on racial justice or other political issues may not have the intended effect, and initial reactions may quickly fade.
Boycotted Brand Mentions
CPG Mentions
35%
8%
28%5%
Goya15%
24%
Retailers Category
Sports Category
Restaurant Category
Other Category
Goya
Gilette
Yeungling
Aunt Jemima
Barilla
Deschutes Brewing
Nestle
Quaker
Question: What brands, if any, have you stopped buying due to their stance on racial justice or another political matter? (consumer packaged goods or any other brands, retailers, etc.)
Effects of Taking a Stand on Racial Justice
CPG
11 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
This research found a consumer base that is in a state of unprecedented change and they are on edge. As the pandemic and recession play out, purchase decision drivers and their underlying influences will continue to evolve. The findings highlight the importance of brands and retailers doing all they can to reduce the risk of spreading Covid-19 and aligning with customers’ increased need for convenience. Doing so will be key for brands and retailers to not just survive, but to thrive. The rapid evolution of purchase decision drivers will be magnified if there is a second wave of infections or if a new shut down is put in place. And again when an effective vaccine is eventually implemented. Therefore, it should come as no surprise that it is critical for brands to understand their own customer base and focus their efforts on meeting customer needs.
As we look at the insights developed from the research, here are the key take-aways:
The Customer Experience Has Transformed: Changes to how, when, where, and why customers are engaging with a brand has accompanied the explosion in online demand. How much this reverts to pre-pandemic levels will vary by industry, but brands need to enhance their online experience if they want customers to return.
Loyalty Has Been Undermined: The ability for customers to be brand loyal has been severely disrupted by economic and product availability factors. Brands need to rethink their channel, offer, retention, and acquisition strategies and tactics to align with changing consumer realities.
Consumer Spending Restrained: A combination of reduced income, unemployment, and uncertainty has led to reduced spending in most households. Brands need to be conscious of this newfound consumer frugality after a decade of economic growth.
Customer Decision Making is Evolving: The rapid changes we have seen this year to decision drivers are not done, and with the increased importance of secondary decision drivers, more disparate buyer groups are developing. Brands need to make it easier for customers to buy (convenience) and be more thoughtful when taking polarizing stances on hot button issues.
Knowledge is Power: Assumptions are always dangerous when it comes to satisfying customer needs. With such radical changes to products and channel demand, decision drivers, engagement vehicles, the customer experience, and economic situations, a false assumption could drive your customers to a competitor. Brands should develop new analytics, insights, and research to remain relevant and informed.
We have been excited to work on this research as it enabled us to better understand what is truly going on in the mind of the consumer. Despite their clear concerns, they also communicated resiliency and the hope that things would improve. We hope the research data and our analysis provides you with insight into your customers’ behaviors and informs your marketing strategies to better meet their needs. Thank you.
For more information about Marketing IQ click here MKT-IQ.COM
or for more information on our research services click here
or email us at [email protected]
Conclusions
12 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
About the Researchers
Methodology
Responses for this survey were collected on July 20, 2020 using SurveyMonkey Audience panel of U.S. adults, age 18+. We asked a group of 303 survey respondents several closed-ended questions about their purchase decision drivers before and after the Covid-19 pandemic, along with changes to their economic situation, and changes to their consumption behaviors due to Covid-19 and the ensuing recession. The results were adjusted by Gender and Age to ensure representativeness to U.S. Census. Information on how respondents are recruited to SurveyMonkey is available here: www.surveymonkey.com/mp/audience.
Research Methodology
Dan Snelten is a seasoned market research professional with more than 25 years experience. A veteran of industry research leaders Ipsos and ORC International, he has also worked client-side, and most recently at Fluent, a leader in 2nd party data collection and performance marketing where he led all research initiatives. His work has informed C-suite decision making and guided insights development across a diverse range of clients and industries throughout his career including retail, financial services, medical devices, insurance, telecom, CPG, and dining.
Dan is well known for his keen attention to detail, focus on building strong client-partnerships, creative thinking, and innovative solutions. He has conducted and overseen extensive strategic research both domestically and globally, in support of segmentation, brand health, customer loyalty, product and concept testing, price sensitivity, attitude and usage, and tracking research. While his primary focus has been quantitative research, he has also conducted IDIs, focus groups and ideation sessions, and managed large-scale projects involving mall and store-intercepts.
Dan holds an MBA degree from Northern Illinois University and a BA degree in Sociology from Loyola University in Chicago.
Marc Shull is the founder of Marketing IQ. Best known for bringing a clear vision to client marketing challenges, Marc brings together the best of marketing’s left-brained analytics and insights with right-brained creative and strategy to develop highly effective marketing solutions.
Over the last 20+ years, Marc has worked with businesses ranging from regional non-profits to large multi-national corporations across a diverse set of industries including: Visa, Party City, Aetna, Del Frisco’s Restaurant Group, General Mills, Kraft, Miller Coors, P&G, eBay, Intel, Prudential Capital Group, Polska Grupa Farmaceutyczna, Domino’s, Safeway, and Wal-Mart.
As a market researcher, Marc’s expertise is looking beyond what was asked to develop dynamic insights that get at the heart of business issues and provides brands with clear and actionable answers to their management questions.
Marc holds an MBA degree from the University of Notre Dame and a BSBA degree in Marketing from Ohio State University
13 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
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reak
% C
han
ge
∆ B
ran
d's
Po
siti
on
on
Rac
ial J
ust
ice
8.0%
12.2
%2.
5%8.
8%9.
7%8.
7%3.
1%11
.2%
9.2%
10.4
%0.
0%13
.8%
7.2%
7.4%
4.2%
6.3%
9.0%
7.0%
∆ E
nvi
ron
men
tal I
mp
act
-4.2
%-4
.0%
-5.6
%-2
.5%
-6.6
%-8
.4%
-2.5
%-1
.7%
-11.
6%-4
.5%
-2.1
%-2
.9%
10.1
%-4
.7%
-8.6
%-1
1.9%
-3.8
%4.
0%
∆ C
on
ven
ien
ce6.
5%6.
1%5.
5%5.
2%4.
7%6.
9%6.
7%7.
0%2.
3%8.
5%3.
0%9.
9%3.
7%4.
2%6.
7%8.
3%3.
4%7.
0%
∆ Q
ual
ity
-2.4
%-4
.3%
-1.2
%-3
.6%
-1.6
%-3
.2%
-5.2
%-2
.7%
-2.9
%-2
.4%
-4.5
%0.
3%0.
0%-5
.4%
0.2%
-5.6
%-1
.9%
-2.8
%
∆ T
rust
ed B
ran
d-2
.5%
-2.8
%-1
.5%
3.7%
-9.7
%1.
0%-1
.7%
2.0%
-5.9
%-4
.2%
-1.3
%-0
.9%
0.6%
-4.6
%1.
5%-2
.8%
-3.7
%0.
9%
∆ P
rice
/ V
alu
e fo
r M
on
ey-3
.3%
-2.8
%-4
.5%
2.8%
-3.4
%-6
.3%
-3.6
%-1
.8%
-5.3
%-0
.6%
-9.0
%0.
4%-3
.4%
-6.2
%-1
.2%
-5.9
%-2
.9%
-2.7
%
∆ D
isco
un
t O
ffer
ed3.
5%2.
5%3.
3%6.
6%7.
2%0.
5%1.
4%5.
8%1.
8%4.
6%-3
.0%
1.4%
0.0%
2.9%
1.7%
4.3%
4.5%
-3.0
%
∆ R
evie
ws
and
Rec
om
men
dat
ion
s-2
.4%
-1.7
%-3
.9%
-1.0
%-6
.4%
0.3%
-1.5
%-4
.7%
-7.7
%0.
8%-0
.4%
-4.6
%2.
8%-2
.0%
-2.7
%-6
.7%
-2.0
%-1
.7%
Pan
dem
ic A
ttri
bu
ted
Be
hav
iors
% B
ou
ght
Oth
er B
ran
d(s
) to
Sav
e M
on
ey41
.3%
45.7
%34
.7%
40.4
%52
.7%
36.4
%22
.2%
51.4
%48
.9%
34.8
%30
.4%
50.0
%52
.0%
45.1
%27
.3%
31.7
%44
.6%
43.4
%
% B
ou
ght
Oth
er B
ran
d(s
) D
ue
to L
ack
of
Pro
du
ct A
vaila
bili
ty73.8
%76
.8%
69.3
%68
.1%
71.6
%74
.2%
77.8
%57
.1%
80.9
%75
.3%
89.1
%88
.2%
76.0
%72
.9%
78.8
%51
.7%
80.2
%84
.9%
% S
tart
ed U
sin
g G
roce
ry D
eliv
ery
/ P
icku
p f
or
Firs
t Ti
me
43.3
%47
.7%
36.6
%53
.2%
36.5
%42
.4%
46.7
%44
.3%
53.2
%37
.1%
43.5
%52
.9%
56.0
%44
.4%
34.8
%35
.0%
43.0
%54
.7%
% S
tart
ed U
sin
g a
New
Sh
op
pin
g A
pp
26.2
%29
.8%
20.8
%36
.2%
18.9
%24
.2%
26.7
%31
.4%
40.4
%16
.9%
21.7
%35
.3%
32.0
%28
.5%
19.7
%26
.7%
28.1
%24
.5%
% S
tart
ed U
sin
g a
New
Str
eam
ing
Serv
ice
23.4
%20
.5%
27.7
%31
.9%
20.3
%22
.7%
17.8
%24
.3%
34.0
%20
.2%
17.4
%23
.5%
28.0
%24
.3%
18.2
%28
.3%
23.1
%22
.6%
% S
tart
ed U
sin
g a
Ho
use
ho
ld B
ud
get
18.7
%17
.9%
19.8
%34
.0%
14.9
%21
.2%
4.4%
24.3
%19
.1%
18.0
%10
.9%
20.6
%24
.0%
25.0
%10
.6%
28.3
%16
.5%
15.1
%
% D
elay
ed M
ajo
r P
urc
has
es47
.6%
49.7
%44
.6%
44.7
%45
.9%
50.0
%40
.0%
41.4
%40
.4%
55.1
%50
.0%
61.8
%60
.0%
50.0
%43
.9%
41.7
%52
.9%
41.5
%
% N
on
e o
f th
e A
bo
ve17
.5%
13.2
%23
.8%
19.1
%13
.5%
15.2
%22
.2%
15.7
%14
.9%
15.7
%26
.1%
14.7
%12
.0%
8.3%
37.9
%18
.3%
15.7
%13
.2%
Ave
rage
# o
f A
bo
ve A
ctio
ns
Take
n2.
432.
652.
122.
702.
352.
511.
982.
522.
832.
292.
163.
053.
142.
781.
762.
142.
602.
58
Rea
ctio
n t
o a
Reg
ula
rly
Bo
ugh
t B
ran
d's
Po
siti
on
on
Rac
ial J
ust
ice
or
Oth
er P
olit
ical
To
pic
% N
oth
ing,
Sti
ll B
uy
fro
m B
ran
d a
s U
sual
33.1
%32
.7%
33.6
%35
.2%
30.6
%30
.0%
42.3
%24
.7%
40.4
%33
.0%
38.5
%10
.8%
23.1
%34
.3%
38.8
%65
.7%
25.6
%3.
7%
% R
edu
ced
/ S
top
ped
Sp
end
ing
wit
h B
ran
d36
.1%
39.1
%31
.9%
37.0
%29
.2%
38.6
%38
.5%
35.1
%34
.6%
38.6
%34
.6%
48.6
%50
.0%
37.9
%31
.8%
15.7
%39
.5%
57.4
%
% T
hre
w O
ut
/ D
estr
oye
d /
Do
nat
ed B
ran
d's
Pro
du
cts
7.4%
3.8%
12.4
%11
.1%
9.7%
4.3%
5.8%
6.5%
11.5
%6.
8%5.
8%10
.8%
15.4
%7.
9%5.
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.0%
2.3%
16.7
%
% A
ctiv
ely
Pro
test
ed A
gain
st B
ran
d5.
9%5.
1%7.
1%11
.1%
6.9%
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3.8%
9.1%
7.7%
4.5%
1.9%
21.6
%23
.1%
6.4%
5.9%
4.3%
6.2%
9.3%
% S
pre
ad N
egat
ive
Wo
rd-o
f-M
ou
th A
bo
ut
Bra
nd
14.1
%9.
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.7%
15.7
%9.
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17.3
%9.
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.3%
18.9
%19
.2%
15.7
%12
.9%
5.7%
11.6
%29
.6%
% T
he
Bra
nd
s I B
uy
Hav
e N
ot
Take
n S
tan
ces
I Dis
agre
e W
ith
29.4
%29
.5%
29.2
%35
.2%
26.4
%32
.9%
23.1
%31
.2%
23.1
%27
.3%
36.5
%29
.7%
19.2
%26
.4%
30.6
%8.
6%37
.2%
38.9
%
% T
oo
k 1+
Pro
test
Act
ion
s A
ctio
n44
.2%
43.6
%45
.1%
48.1
%44
.4%
42.9
%40
.4%
49.4
%44
.2%
42.0
%40
.4%
64.9
%65
.4%
46.4
%37
.6%
28.6
%44
.2%
68.5
%
% D
id N
ot
Ch
ange
or
No
Dis
agre
em
ent
55.0
%55
.1%
54.9
%50
.0%
54.2
%57
.1%
59.6
%49
.4%
53.8
%58
.0%
59.6
%32
.4%
34.6
%52
.1%
62.4
%70
.0%
55.0
%31
.5%
Hyp
oth
etic
al C
on
tin
uin
g to
Bu
y W
hen
Dis
agre
ein
g w
ith
a R
egu
larl
y B
ou
ght
Bra
nd
's F
utu
re P
osi
tio
n o
n R
acia
l Ju
stic
e o
r o
ther
Po
litic
al T
op
ic
May
be,
bu
t O
nly
If T
her
e W
ere
No
Oth
er O
pti
on
s22
.1%
25.6
%17
.4%
23.1
%26
.3%
19.1
%19
.6%
27.3
%20
.4%
17.8
%23
.6%
20.0
%16
.0%
22.1
%22
.6%
0.0%
42.9
%0.
0%
May
be,
Dep
end
s o
n t
he
Bra
nd
/ P
rod
uct
29.5
%31
.4%
27.0
%23
.1%
25.0
%36
.8%
31.4
%26
.0%
20.4
%36
.7%
30.9
%22
.9%
24.0
%31
.7%
31.0
%0.
0%57
.1%
0.0%
No
, I W
ou
ld N
ot
Bu
y fo
r A
ny
Rea
son
22.1
%20
.5%
24.3
%19
.2%
22.4
%23
.5%
25.5
%14
.3%
20.4
%26
.7%
27.3
%42
.9%
28.0
%16
.6%
20.2
%0.
0%0.
0%10
0.0%
Yes,
Wit
h a
Dis
cou
nt
9.6%
8.3%
11.3
%17
.3%
10.5
%7.
4%3.
9%16
.9%
4.1%
10.0
%3.
6%11
.4%
16.0
%11
.7%
7.1%
36.6
%0.
0%0.
0%
Yes,
I D
on
't C
are
Wh
at T
hey
Do
16.6
%14
.1%
20.0
%17
.3%
15.8
%13
.2%
19.6
%15
.6%
34.7
%8.
9%14
.5%
2.9%
16.0
%17
.9%
19.0
%63
.4%
0.0%
0.0%
Ove
rall
Ho
use
ho
ld S
pen
din
g C
han
ges
Sin
ce t
he
Co
vid
-19
Pan
dem
ic O
utb
reak
in t
he
U.S
.
Dec
reas
ed b
y 1-
10%
13.6
%12
.7%
14.8
%14
.8%
10.0
%17
.1%
14.5
%16
.4%
11.3
%11
.7%
15.5
%7.
9%3.
6%25
.0%
0.0%
7.0%
18.5
%10
.3%
Dec
reas
ed b
y 11
-20%
21.3
%21
.2%
21.3
%16
.7%
28.8
%18
.4%
18.2
%24
.7%
24.5
%22
.3%
12.1
%26
.3%
21.4
%39
.1%
0.0%
25.4
%22
.2%
15.5
%
Dec
reas
ed b
y 21
-30%
10.5
%10
.9%
9.8%
13.0
%11
.3%
10.5
%5.
5%9.
6%11
.3%
9.7%
12.1
%7.
9%21
.4%
19.2
%0.
0%11
.3%
11.9
%8.
6%
Dec
reas
ed b
y M
ore
Th
an 3
0%9.
1%12
.1%
4.9%
13.0
%10
.0%
5.3%
9.1%
4.1%
13.2
%7.
8%13
.8%
2.6%
10.7
%16
.7%
0.0%
16.9
%5.
2%6.
9%
Incr
ease
d13
.9%
13.9
%13
.9%
13.0
%16
.3%
11.8
%14
.5%
16.4
%11
.3%
11.7
%17
.2%
26.3
%17
.9%
0.0%
0.0%
8.5%
8.9%
29.3
%
Rem
ain
ed A
bo
ut
the
Sam
e31
.7%
29.1
%35
.2%
29.6
%23
.8%
36.8
%38
.2%
28.8
%28
.3%
36.9
%29
.3%
28.9
%25
.0%
0.0%
100.
0%31
.0%
33.3
%29
.3%
Age
Gro
up
18-2
927
.4%
29.8
%24
.0%
39.3
%25
.0%
26.3
%9.
1%10
0.0%
0.0%
0.0%
0.0%
38.5
%35
.7%
25.6
%23
.1%
35.2
%29
.3%
18.3
%
30-4
418
.2%
15.8
%21
.6%
21.4
%19
.0%
21.1
%16
.4%
0.0%
100.
0%0.
0%0.
0%23
.1%
21.4
%20
.5%
16.5
%26
.8%
14.3
%16
.7%
45-6
034
.8%
38.0
%30
.4%
25.0
%40
.5%
28.9
%49
.1%
0.0%
0.0%
100.
0%0.
0%25
.6%
32.1
%34
.0%
41.8
%23
.9%
35.0
%40
.0%
> 60
19.6
%16
.4%
24.0
%14
.3%
15.5
%23
.7%
25.5
%0.
0%0.
0%0.
0%10
0.0%
12.8
%10
.7%
19.9
%18
.7%
14.1
%21
.4%
25.0
%
Gen
der
Fem
ale
57.8
%10
0.0%
0.0%
67.9
%67
.9%
44.7
%41
.8%
63.0
%50
.0%
63.1
%48
.3%
74.4
%64
.3%
60.3
%52
.7%
49.3
%63
.6%
53.3
%
Mal
e42
.2%
0.0%
100.
0%32
.1%
32.1
%55
.3%
58.2
%37
.0%
50.0
%36
.9%
51.7
%25
.6%
35.7
%39
.7%
47.3
%50
.7%
36.4
%46
.7%
An
nu
al H
ou
seh
old
Inco
me
$0-$
24,9
9920
.7%
25.0
%15
.1%
100.
0%0.
0%0.
0%0.
0%32
.4%
22.6
%14
.4%
15.1
%26
.5%
22.7
%21
.5%
19.0
%28
.1%
18.9
%17
.9%
$25,
000-
$49,
999
31.0
%37
.5%
22.7
%0.
0%10
0.0%
0.0%
0.0%
30.9
%30
.2%
35.1
%24
.5%
32.4
%31
.8%
33.3
%22
.6%
31.3
%30
.7%
30.4
%
$50,
000-
$99,
999
28.0
%22
.4%
35.3
%0.
0%0.
0%10
0.0%
0.0%
29.4
%30
.2%
22.7
%34
.0%
26.5
%36
.4%
27.1
%33
.3%
21.9
%29
.9%
28.6
%
$100
,000
+20
.3%
15.1
%26
.9%
0.0%
0.0%
0.0%
100.
0%7.
4%17
.0%
27.8
%26
.4%
14.7
%9.
1%18
.1%
25.0
%18
.8%
20.5
%23
.2%
Gen
der
An
nu
al H
ou
seh
old
Inco
me
Age
Gro
up
Key
Au
die
nce
s
Au
die
nce
Seg
men
ts
Tabl
e A:
Key
Aud
ienc
e Re
spon
ses
14 Marketing IQConsumers on Edge:
Understanding The Changing Dynamics of Consumer Purchase Decisions
Tabl
e B:
Pur
chas
e De
cisi
on D
rive
rs C
orre
latio
n M
atri
x
Q1. Brand's Position on
Racial Justice
Q1. Environmental
Impact
Q1. Convenience
Q1. Quality
Q1. Trusted Brand
Q1. Price / Value for
Money
Q1. Discount Offered
Q1. Reviews and
Recommendations
Q3. Brand's Position on
Racial Justice
Q3. Environmental
Impact
Q3. Convenience
Q3. Quality
Q3. Trusted Brand
Q3. Price / Value for
Money
Q3. Discount Offered
Q3. Reviews and
Recommendations
Q3. Risks Associated
with Covid-19
Q1.
Bra
nd
's P
osi
tio
n o
n R
acia
l Ju
stic
e1
Q1.
En
viro
nm
enta
l Im
pac
t0.
499
1
Q1.
Co
nve
nie
nce
0.08
00.
068
1
Q1.
Qu
alit
y0.
145
0.22
10.
203
0.20
3
Q1.
Tru
sted
Bra
nd
0.17
20.
230
0.23
40.
320
1
Q1.
Pri
ce /
Val
ue
for
Mo
ney
-0.0
910.
070
0.28
80.
236
0.08
81
Q1.
Dis
cou
nt
Off
ered
0.08
10.
093
0.16
60.
099
0.16
70.
342
1
Q1.
Rev
iew
s an
d R
eco
mm
end
atio
ns
0.20
30.
264
0.11
60.
223
0.23
50.
144
0.15
81
Q3.
Bra
nd
's P
osi
tio
n o
n R
acia
l Ju
stic
e0.
875
0.42
10.
052
0.08
50.
165
-0.0
410.
048
0.20
81
Q3.
En
viro
nm
enta
l Im
pac
t0.
479
0.68
50.
108
0.18
40.
184
0.01
10.
070
0.19
60.
494
1
Q3.
Co
nve
nie
nce
0.09
80.
033
0.51
60.
177
0.25
70.
214
0.12
60.
121
0.15
80.
047
1
Q3.
Qu
alit
y0.
017
0.08
80.
243
0.41
30.
313
0.27
00.
158
0.24
30.
017
0.14
10.
239
1
Q3.
Tru
sted
Bra
nd
0.16
50.
136
0.18
50.
281
0.54
50.
057
0.06
90.
243
0.17
10.
236
0.26
80.
414
1
Q3.
Pri
ce /
Val
ue
for
Mo
ney
0.06
40.
022
0.22
70.
226
0.15
50.
475
0.38
80.
176
0.13
70.
202
0.34
80.
374
0.15
41
Q3.
Dis
cou
nt
Off
ered
0.06
00.
023
0.18
40.
112
0.13
30.
348
0.65
30.
108
0.10
70.
088
0.22
20.
123
0.07
20.
503
1
Q3.
Rev
iew
s an
d R
eco
mm
end
atio
ns
0.16
90.
198
0.11
00.
192
0.23
90.
173
0.13
20.
652
0.22
20.
285
0.23
70.
221
0.33
20.
193
0.15
91
Q3.
Ris
ks A
sso
ciat
ed w
ith
Co
vid
-19
0.41
80.
355
0.21
30.
170
0.33
10.
045
0.14
60.
216
0.43
80.
357
0.24
00.
167
0.29
30.
144
0.11
80.
187
1
Pre
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dem
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rive
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dem
ic D
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rs
Pre-Pandemic Drivers Post-Pandemic Drivers
Pre
& P
ost
Pan
dem
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Ou
tbre
ak P
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has
e
Dec
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rrel
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ns
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