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the

inside the in-store experience

in focus: 2009 Holiday Shopping
This month we asked shoppers about their holiday shopping plans this season. Do they
expect to spend more, less, or the same compared to last year? Which retail channels

IN THIS ISSUE
will be most a ected?

• Frugal shopping behaviors may be easing—slightly
• ‘Tis the season to be practical
• Use of coupons continues to increase
• Are private-label brands the new reality?
• Shoppers become more sophisticated to find best value
• Shoppers favor contests they think they can win
• Shoppers love deals—any deals.

In focus: Name Brands
Tightening budgets, lowered consumer sentiment, and an unsure economic future—to remain
competitive in this challenging shopping environment, name brands have an arsenal of tactics
at their disposal

• Properly communicate value
• Prepare to win back your shopper when the economy imporoves—starting now
• Continue to actively issue coupons, awareness messages, and rebates in store
• Offer a breadth of product varieties and special editions
• Concentrate on at-shelf messaging and in-store promotions, since more decisions are being
made at shelf
• Be aware that contests with a higher chance of winning appeal to a larger number of shoppers—
even if the prizes are smaller
• Be ready to make a deal

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Frugal shopping behavior may be easing—slightly

Shopping behavior, while continuing to skew toward reduced spending, appears to be
attening out—with a slightly larger number of shoppers moving away from buying few/
cheaper items in October. While spending among both males and females is loosening some,
men appear to have been much more resilient going into the holiday season.

Shopping Behavior Compared to Three Months Ago

?= In the past three months, how has your shopping behavior changed?

Buying fewer/ Buying more/more
cheaper items No Charge Expensive items

(%) 1Q’09 61 37 2

2Q’09 54 44 3
Total
3Q’09 56 42 3
Oct 52a 45 3

1Q’09 56 43 3
Arrow indicates
2Q’09 51 47 3 signi cant di erence
Males from previous quarter
3Q’09 52 46 3 at 95% con dence level
Oct 46 52 2

1Q’09 66 34 1
indicates signi cant
2Q’09 56 42 2 di erence between
Females males/ females at 95%
3Q’09 60 38 3 con dence level

Oct 58 37 5

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‘Tis the season to be practical

Shoppers are still torn between convenience and saving money as primary shopping goals. Tightening
budgets, lowered consumer sentiment, and an unsure economic future has resulted in a shift in shopping
behaviors from performance (quality and shopping experience) to conservation of resources (time and money)
accompanied by changing expectations. Retailers (dollar stores, discount mass) and brands (private-label and
value players) that focus on lower prices will be better positioned to face this challenging selling environment.
But strongly entrenched name brands can still compete by properly communicating value to their shoppers.
This newfound practicality is further exempli ed by the steady increase in quick ll-in trips during the course
of the year, suggesting that shoppers are taking a spend-only-when-necessary position. This attitude toward
spending as little money as possible is most prevalent among female shoppers, while their male counterparts
place a higher value on spending as little time as possible.
However, practicality has not yet taken hold of our younger shoppers (18-24) who are in store more often and
have a higher tendency to make ll-in trips and seek entertainment compared to their older counterparts.

Everyday Shopping-Need Goals
1Q’09
When thinking about your everyday shopping needs

?=
Q2’09
(food, cleaning products, etc.), what would you say
is the primary goal you are trying to meet from each Q3’09 (%)
trip you take? Oct’09

Predominantly women

29 29 28

26 26
25
24
23

Arrow indicates signi cant di erence from
previous quarter at 95% con dence level

13
Predominantly men
13
12 12 12 12
11 11 11
10
8 8 8
7 7 7
6 6 6
4
3
2 2
1

Get everything in a Spend as Comprehensive Satisfy the Quick fill-in trips Find the Spend as little Be entertained
single trip, saving little as possible restocking of the needs of all my to replace the freshest and time in the store and have a fun time
need for more trips items I have used family members things I use as I go best-quality items as possible

2

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Coupon usage continues to increase
Coupons, always one of the more popular shopping aids, have become even more
important in the second half of 2009, indicating the economic e ect of the recession on
shopping behavior. Use of mobile phones, while still relatively limited, has nonetheless
increased over the course of the year potentially due the growing usage of smart- phone
shopping and information-seeking applications. This is especially true with younger
shoppers (18-24), 15% of whom report using mobile phones as shopping aids versus
5% for those aged 35 and over.

Everyday Shopping Goals

?= Thinking about your most recent shopping trip for groceries, which
of the following did you use in the store to help you shop?

44 18
coupons from a 45 message on the shelf 16
manufacturer 48 16
47 17

12
41 13
42 in -store associate 10
shopper-card discount 46 11
43
6
touch-screen device 7
45
6
directional signs 43
6
above the aisle 39
40 7
a poster hanging 6
34 from the ceiling 6
34 6
coupons from the store 37
37 5
mobile phone 3
6
35 7
35
newspaper circular 36 6
35 5
leaflet 5
5
31
33 3
self-checkout 33 1Q’09
3
31 electronic kiosk 2
Q2’09
(%) 2
26 Q3’09
circular from inside 24 3
the store 27 Oct’09 in-store PA 2
23 announcement 2
2
Arrow indicates 2
significant difference 2
floor ads in store aisles 17 from previous quarter
in-store TV 1
15 at 95% confidence level 1

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Consumers are still in the mindset of saving money
Consumer behavior continues to skew toward lower spending, with males more apt to
make credit purchases and seek out American-made products. Single shoppers are more
willing to spend money to save time. Higher-income households ($100K+) are more likely
to purchase name brands, while 28% of younger shoppers (18-24) report that they are
more loyal to their usual brands and less apt to switch.

Shopping Preferences

? = Currently, where do you believe you fall between the following?

Q1’09 41 39 15 6
(%) Q2’09 37 41 17 5
seek out lowest seek out
possible price American-made
Q3’09 39 40 16 5

Oct 37 41 17 5

Q1’09 35 42 19 5

save money by Q2’09 spend more
shopping around 31 45 19 5 but save time

Q3’09 30 43 21 5

Oct 29 45 22 4

Q1’09 35 41 19 6

save today, Q2’09 32 buy now
buy tomorrow 44 19 6
on credit
Q3’09 33 42 18 6

Oct 32 44 20 4

Q1’09 22 44 26 8

stick with familiar switch brands or
brands or items Q2’09 22 47 25 6 try new brands
more often
Q3’09 22 47 25 6

Oct 22 47 26 5

Q1’09 14 34 37 15

buy individual-sized Q2’09 14 36 38 13 buy in bulk
items
Q3’09 13 37 37 13

Oct 14 35 40 11

buy private-label/ Q3’09 15 46 32 7
buy national/
store brands name brands
Oct 16 47 30 7

describes more
Indicates significant difference from previous month at 95% confidence level.

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Have store brands become the new reality?

?= Which statement about store brands best describes you?

Store-Brand Descriptors (%)

7 7
Buying more store brands, and will
8 probably buy even more 8

10 10
Buying fewer store brands than
last year
19 20

Buying more store brands, but probably
will switch back to name brands

Buying more store brands, and will
56 probably stock with them 54

Buying store brands about the same
amount as last year

july october

The number of shoppers switching to store brands seems to have reached a plateau with no
signi cant changes after steadily increasing until the second quarter 2009. The question is:
will those people who have been prompted to switch to store brands due to the recession
switch back when the economy improves?

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Shoppers increasingly consider variety as a
reason not to switch to private label brands

There were signi cant drops in shoppers reporting that they always consider trust in their name brand, sale prices, and
coupons as reasons they do not buy store brands, potentially alluding to the growing strength of private-label products.
The overall ranking for the top ve reasons shoppers gave for not buying store-brand alternatives remained relatively
the same, with brand often being on sale, trust in the brand, and satisfaction with the regular price making up the top
three. However, this month saw two major changes at number four—shoppers are less doubtful of the quality of store
brands, but they are less likely to switch from their name brands due to the di erent varieties of product available. As the
sophistication of store brands catch-up, name brands will have to justify their higher prices with continuing innovation
and engaging product o erings.

Reasons Not Buy Store Brands

?
If you've seen a store-brand option for some of your groceries or
= household goods but decided to stay with a name brand, what are
the reasons for not buying the store-brand option?

15 14 8 4 3
27 28 17
3
35 32
48
52
JUL 65 67
70
62 52
53
64
49
40
20 20 always a reason
13 19
12 11
sometimes a reason (%)
never a reason
15 10 3 3
23 21 21 16
31
3 28 Indicates significant difference
from previous month at 95%
confidence level
51
56
70 62
68 63 59
OCT 59
69
46
34
16 20 23
10 9 14
It’s (name My brand is My brand has I can get The regular Doubts I use the I don’t like Other
brand) just a often on sale special coupons for price of my about quality product so the store
brand I trust versions or my brand brand is fine of store little that it’s brand
varieties that brand not worth packaging
I can’t get in product switching
store brands

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Private label brands continue to gain
strength with shoppers and their families

Name-Brand Statement Agreement

?
Strongly Agree
= Compared to store brands, how much do you agree with the following
statements about name-brand groceries or household goods? Agree

JUL OCT
Name brands are 22 62 84 22 58 80
more expensive

Name brands offer more new 9 55 64 7 50 57
products, varieties, and innovations

Packaging of name brand 9 43 52 8 41 49
is more attractive
37%
Name brands 4 33 37 3 34 37
are more reliable

Name brands are 4 35 39 (%) 4 31 35
better-quality products
Arrow indicates
significant difference
Name brands 3 19 22 from previous month at 2 21 23
packaging works better 95% confidence level

Name brands are what 3 18 21 2 15 17
my family expects to get

Name brands better reflect 2 12 14 1 14 15
my values and attitudes

While most consumers continue to perceive name brands as more expensive (80%) while o ering greater variety and
innovation (57%) than store brand alternatives, this number has signi cantly decreased since last quarter. Shoppers
also perceive less di erence in product quality and their families are becoming more used to having store brands in the
shopping basket. High income shoppers ($75,000+) and younger (18 – 24 year old) shoppers have a greater a nity for
name brands and are more apt to feel that they are more reliable, o er greater breadth of products, and have packaging
that is more attractive or that works better.

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Shoppers appear to be growing in sophistication and
becoming more involved in the decision making process

While most shoppers still indicate that they are price sensitive, this month saw signi cant changes in shopping behavior
with fewer shoppers going straight to the sales items, to their usual brand, or even store brands – indicating that they
are making more of their decisions at shelf. Decision-making between name and store brands encompasses a variety
of price considerations – including comparing on-shelf prices and checking sales and coupons before buying. Their
shopping sophistication appears to be further increasing as shoppers reported that they are less in uenced by sales
features (such as end-caps), asking associates for product opinions.

Store-Brand Shopping

?
Strongly Agree
= Thinking about your most recent shopping trip for groceries,
which of the following did you use in the store to help you shop? Agree

JUL OCT
I regularly compare prices between 26 54 80 26 52 78
name brands and store brands
I’ll look at what’s on sale first and 24 57 81 21 56 77
then compare that to other options
I look for my usual brand on shelf,then 9 59 68 9 55 64
look around for store-brand alternatives

I’ll look for what i have coupons for first, 18 45 63 17 46 63
then compare that to other options

I get information from friends and family 2 19 21 2 22 24
about store brands before trying them
(%)
I go right for the name brands and 4 23 27 3 19 22
get what I want Arrow indicates
significant difference
I’ll try whatever’s being featured by the from previous month at
3 20 23 18 19
store (such as display on end of aisle) 95% confidence level

I go right for the sotre brands and 2 20 22 2 16 18
get what I want
I ask sales associates which brand 27 9 15 6
offers the best quality for the price

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Surprise! Shoppers prefer contests
that they actually think they can win

More than half (56%) of shoppers nd a modest prize with a reasonable chance of winning
to be more appealing than a larger prize with worse odds or a greater chance of winning
a small prize. However, when considering how to structure your promotion and the value
of your prize, consider your target shopper—male shoppers have a higher a nity for
contests with modest prizes and reasonable chances, while female shoppers prefer having
a higher chance of winning a small prize.

Most Appealing Promotions

?= When considering promotional contests in a store,
which type of offer is most appealing to you?

OCT (%) Large prize,
even if chances of
winning are slim

Small prize with
high likelihood 11
of winning
33

56 Modest prize
with reasonable
chance of winning

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Shoppers love deals—any deal

Consumers appear to want to take advantage of any deal they can nd; however, buy-one-get-one-free
o ers or clearly marked reduced prices are the ones most likely taken advantage of. Women are more likely
than men to take advantage of promotional o ers, whereas older consumers are more willing to invest
time in money-saving activities with a larger use of rebates, mail, and newspaper coupons. However, not
all shoppers respond with the same fervor to all types of deals—younger shoppers reported that they
do not readily change their behavior based on coupon o ers but were signi cantly more likely to shop
clearance items.

Money-Saving Techniques

?= Which money-saving techniques are you
most likely to take advantage of in a store?

OCT (%)
BOGO free or at reduced price 80

Store savings from loyalty/rewards card 68

Clearance items 68

On-pack instantly redeemable coupons 66

Coupons from newspaper 65

Coupons from mail 57

In-store circulars 55

Money off if purchase two or more 53

Coupons from internet 44

Coupons from magazines 42

Rebate offers 41

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The Integer Group® (www.integer.com) is M/A/R/C® Research is a brand development firm
one of America’s largest promotional and retail dedicated to helping clients create, evaluate, and
marketing agencies and a key member of the strengthen their brands. Our teams design and execute
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Group resides At the Intersection of Branding solutions while adhering to a client-service ethic built on
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solutions for clients in categories that include
Our core competency is measuring attitudes and
beverage, packaged goods, telecommunications,
behaviors to accurately explain and predict market share,
fast food, home and shelter, and power sports.
revenue, and bottom line impact of a client’s actions. We
Join Integer® in a conversation on shopping
help our clients address consumer, channel, and B2B
culture and brand strategy at:
marketing issues to launch better products and services,
attract and retain valuable customers, and build stronger
www.shopperculture.com brands. Our proven, marketing-issue focused solutions
contact: The Integer Group support clients’ brand building efforts.
Craig Elston
Sr. VP, Insight & Strategy
celston@integer.com
www.MARCresearch.com/thecheckout
7245 West Alaska Drive
Lakewood, CO 80226 contact: M/A/R/C Research
tel +1.303.393.3474 Randy Wahl
EVP, Advanced Analytics
Randy.Wahl@MARCresearch.com

1660 North Westridge Circle
Irving, TX 75038
tel +1.972.983.0436

The Checkout is based on a nationally representative survey of 1,200
U.S. adults conducted monthly by M/A/R/C Research. Please contact
us to learn more about the data we collect or additional analysis.

©2010 by The Integer Group® and M/A/R/C® Research. All rights reserved.
The data contained in this report may be reproduced in any form as long as the
data is cited from The Integer Group and M/A/R/C Research.
www.ShopperCulture.com.

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