From intentionto action: the importance of tracking
Within three months, a number of consumers have done the reverse of what they initially planned.
In the second wave of the survey, fielded in January 2023, we tracked the decisions consumers ultimately made in relation to their purchases. This highlighted how problematic it can be to attempt to predict or anticipate people’s actual behaviour based on their original intentions alone.
For instance, across the European 5 (France, Germany, Great Britain, Italy and Spain) and United States, amongst those that went on to purchase a smartphone in the three months since the first wave:
One in five had intended to spend less on their next phone, but 24% of these actually went on to spend less – while 76% ended up spending the same or more.
Of the 6% who had intended to spend more, 48% did that, while 20% went on to spend less.
2% intended to cancel, but 8% went on to purchase after all.
There are a number of reasons behind these changed plans – including, of course, a rise in confidence. For example, someone who had intended not to buy a new smartphone might have been forced to renege on that decision if they lost or broke theirs. Someone who spent more than intended might have been motivated to do so by features that boosted the perceived value of the product.
The data from the first two waves of Worldpanel’s Global Consumer Confidence Tracker survey strongly suggests that while consumers are still being impacted by the cost-of-living crisis, the green shoots of a recovery have begun to show.
People remain open to spending on consumer technology products and services. They’re also proving to be highly adaptable, upping their spend and accelerating purchases as their financial situation and mindset around it improves.
However, initial data highlights the volatility of a consumer’s mindset and subsequent behaviour – they will be just as quick to tighten their belts and ‘do without’ to manage their household budgets if they feel they need to.
Although brands shouldn't become complacent in the face of the cost-of-living crisis, they don’t need to be as sensitive in their marketing and communications approach as they were six months ago. They can afford to be bolder, whilst maintaining a focus on demonstrating value to consumers.
