Marketers often speak of consumer confidence and its effect on the economy and purchase behavior. While broad-sweeping statements to this effect may still ring true, we recently conducted some new research that shows it may not be that simple. In fact, the way consumers feel about the world on a general level does not necessarily reflect their own micro-view of themselves. There is a disconnect between personal experience and overall world view.
What does this mean? For example, many people look at the state of the world today and feel anxious, fearful and even angry. Environmental concerns, polarizing views of the government and economic uncertainty can all contribute to this mindset. However, people who hold these concerns don’t necessarily let them permeate their everyday lives. They can have a positive, confident viewpoint when it comes to their own individual experiences, even in the face of a negative world outlook. I’ll call these two points of view “macro” and “micro.”
When we conducted our research, we surveyed 1,000 U.S. residents over the age of 18 about their views on economics, politics, their personal lives and social issues. We found the majority of respondents felt confident (72%), enthusiastic (64%) and satisfied with their own lives (61%) — their “micro” view of their life was positive. This contrasted sharply with their “macro” view: Only 35% trust their government, 37% trust others in general, a mere 30% felt the world was headed in a good direction, and a tiny 19% felt that those in power had society’s best interests at heart. From a financial standpoint, a whopping 59% felt that the cards were stacked against them.
These sharp contrasts between how people see themselves and how they see the world reveal the complicated underpinnings of how people are seeing the world. Broad metrics like consumer confidence are still showing some strength, but taking the macro views expressed in our survey into account, the positive position of consumer confidence seems likely to be eroding quickly. Consumers are feeling okay in their space but also see some real danger on the horizon.
Diving Into The Demographics
To add another layer to this, we also looked at the data from a generational standpoint. It stands to reason that the more stable boomers and Gen Xers might feel differently than their younger counterparts in the millennial and Gen Z groups. In some cases, we did find this to be true. The most marked difference between the under 40 and over 40 crowd was where they got their news. The younger generations consume 71% of their news from social media, whereas only 39% of those over 40 do so. Is this way of finding news contributing to the macro anxiety? It could very well be. Some other studies show that social-media-driven news has widespread problems, including manipulation by “bad actors” and a tendency for viewers to read only the headlines.
In other cases, we found all ages to be more closely aligned. For example, there was only a 5% spread between the older and younger groups when it came to concerns about climate change, with the younger generations slightly more worried.
When we examined shopping habits between women and men, there were some slight differences to note. Because women still hold 70-80% of the purchasing power for their families, any anomalies in their feelings and behaviors are important. They are about 10% more likely to find shopping stressful, especially when it comes to expensive items. They are also more likely to prefer non-mainstream brands. This behavior is fear-based, and worry about economics can cause hesitation in spending more while shopping.
So What Does All This Data Mean For Brands?
When you examine the data above, it’s clearly important for brands to gather information on individual emotions rather than relying on generalized data about broader viewpoints. People would prefer to present a positive view of themselves when asked to describe their lives. Our research shows, however, that there are serious dark forces in consumers’ minds that can have real implications for how they are making decisions.
Brands need to be aware of this tension in consumers — there is more going on with them than an immediate purchase need. Brands that can assuage consumer anxiety and offer comfort will win share over competitors. Hyundai, one of our clients, comes to mind for its Shopper Assurance programs.
Furthermore, younger generations have an expectation that brands will be good citizens: 45% of those under 40 expect brands to take a stand on social issues. Because social unrest is a basic fear for most, this is a heavy burden that brands must shoulder to stay relevant as Gen Z and Alphas mature. This may be a bigger undertaking than brands imagine, as only 19% of consumers believe that brands care about their customers. Differentiation today is about customer care and communicating values, ethics and support clearly and often.
In short, there’s quite a divide in how consumers see themselves and how they see the world overall. This gap is driving a different kind of behavior, and these actions can’t be addressed with any sweeping generalizations. Brands must start to uncover insights on how the individuals in their target audiences are feeling, both on a micro and macro level, in order to communicate with them in a way that resonates and will inspire positive action.