Confidence in the economy spurs consumer spending
Consumer confidence surveys can measure consumers' plans for spending. They also can provide a timely opportunity to advertise and market your business and services.
Surveys that measure consumers' confidence in the economy are a vital benchmark of economic development. We see national and local agencies using consumer confidence surveys to measure the population's sentiment in the U.S. as well as local markets.
Consumer confidence is an economic indicator. It measures how confident consumers are about the overall state of the economy. It also measures how confident people feel about their income's stability. Their confidence impacts their economic decisions and their spending activity. As a result, consumer confidence is a key indicator for the overall shape of the economy.
Economic indicators such as the unemployment rate, gross domestic product (or GDP), or the inflation rate indicate how well the economy is doing. They also indicate how well the economy is expected to do in the future.
Consumer confidence, measured by the Consumer Confidence Index (CCI), is defined as the degree of optimism on the state of the economy that consumers are expressing through their activities of saving and spending.
For the most part, consumer confidence surveys add another measurement to a market's well-being. In addition to statistics that measure a market's population, housing and business growth, employment growth, cost of living, retail sales growth, etc., consumer confidence in a market adds another key performance indicator. Consumer confidence provides a look at the attitudes of a market's well-being.
Each month the Conference Board surveys about 5,000 U.S. households. The survey consists of five questions that ask the respondents' opinions about the following:
- Current business conditions.
- Business conditions for the next six months.
- Current employment conditions.
- Employment conditions for the next six months.
- Total family income for the next six months.
Survey participants are asked to answer each question as "positive," "negative" or "neutral."
While consumer confidence can help in market and economic development, it can also be a vital measurement for you in your marketing and branding initiatives. If consumers have a high sentiment in the economy, it provides another dimension to key indicators.
According to Research Director On Demand, by adding a few key questions about the local economy, consumers' financial conditions and future spending, the survey can be a key component for your branding and marketing initiatives.
If consumers have high confidence in your products or services as well as your market, your marketing and branding initiatives take you to another level. Your customers will welcome research that shows consumers are confident in the market. If you can show that consumers intend to spend more in coming months, it will also help you advertise and market your products or services.
Consumers in your market who plan to spend on high-ticket items, major appliances, services, etc. can reinforce your branding that consumers are confident in your market.
Consumer confidence surveys that measure your local market conditions have many benefits. For example, they provide:
- Insights on local vs. national consumers trends.
- Research on recruiting new companies and talent for county and metro area government agencies and economic developers.
- Insights on consumers' attitudes for future shopping and buying of consumer goods and services.
- Research to help media companies reinforce advertising spending in their market.
Consumer confidence in the economy spurs consumer spending power. It is a great opportunity to advertise and market your business especially when consumers are ready to spend.
Research Director On Demand has conducted a number of consumer surveys including ones that measure consumer confidence. If you are interested in learning more about how we can conduct one for your market, feel free to contact us.
If you are interested in seeing some examples of the many research, sales sheets and presentations we have done, please contact us any time.