Consumer Confidence

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Consumer Confidence in the spring of 2008 fell to the spring of 2005 and was 44%. In autumn 2007 the figure was 58%, and in the spring of 2007 – 76%. This is the sharp decline in the index in the history of observations since 2001. Methodology calculating the index of consumer confidence is to assess the views of the middle class on the future financial situation of their families. The project 'lifestyle of the middle class' respondents were given the following question: 'What, in your opinion, to change your family's financial situation in one year? ". There are five mutually exclusive answers: 'much worse', 'slightly worse', 'no change', 'slightly better 'and' significantly improved '. Since the set of options is a semantic differential (ie the scale opposite the sense of approval with intermediate values), these options can be quantified. Thus, a variant of 'significantly worse' means 0% certainty, 'a little worse' – 25% 'no change' – 50% 'slightly better' – 75% 'much better' – 100%.

The weighted average value of these quantitative assessments, and affects the index of consumer confidence. Consumers are driving the economy, giving impetus to two-thirds of all economic activity in Russia. The consumption depends heavily on what they think consumers of tomorrow, that is, of consumer confidence. Of consumer confidence depends whether they will increase its debt or reduce spending to repay debt. Measurement of consumer confidence plays an important role when making decisions about inventory levels, recruitment, development of budgets for promotion. By reducing the confidence of consumers are beginning to exclude patterns of the surplus that they could afford more optimistic times. First of all concerned to reduce discretionary spending, ie, goods purchased on the relative abundance of funds.

Laundry facilities are replaced with self-laundry, restaurants – home food, taxi – by public transport. First, reduced consumption and then exclude 'unnecessary' entire product categories. Accordingly, the more your product belongs to the category of discretionary consumption, the more careful you have to watch the mood of the audience. According to the results of marketing research agency Quans Research

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