Holiday 2010: Consumers Cutting Back on Spending

Results from a recent 'Invoke Live!' study among 300 Americans shows that the economy will have an impact on consumers’ spending this Holiday Season.

Invoke Solutions, a leader in large-scale online qualitative market research, recently conducted one of its “Invoke Live!” sessions among 300 participants to understand how Americans celebrate their holidays, how they think about and approach gift shopping, and more importantly, what impact the economy will have on their holiday plans. Invoke found that the economy is likely to have a significant impact on certain aspects of holiday celebrations, but it is not likely to put the breaks on all holiday spending entirely. 75% of participants stated that the poor economy is going to impact their holiday spending at least somewhat, with 35% saying it is going to have a major impact.

“We're only buying for the kids in our families this year.”

The Study found that the economy is impacting holiday plans most among women 50-64 years old and those earning less than $50,000 a year. A majority (54%) of women age 50-64 years old stated that they would definitely or probably spend less this holiday season. And nearly half (47%) of participants with household incomes from $25,000 to $49,000 indicated that they will definitely spend less on gifts this holiday season.

Participants in the study indicated three areas where they are likely to try to save money this season.

• Adjusted travels plans

“It's hard to travel because of the expenses associated with gas and hotels.”

“If I had money, I would go to N.C. to see my great nieces in their first ballet, the Nutcracker! But, I don't so I can't fly, and will not be going!"

• Shopping more on deals

“My hours have been cut back so I am more cost conscious and use coupons and shop for deals.”

“Definitely spending less and looking for sales and clipping coupons.”

• Buying gifts only for the children

“Less to spend. Only buying for the kids.”

“We're only buying for the kids in our families this year.”

In fact, giving gifts to children seems to be sacrosanct. People in poor economic conditions seemed to be just as likely to buy gifts for their children as those in good economic conditions, with 72% of both groups saying they intend to buy gifts for children this year. However, siblings, extended family members and in-laws might be less likely to see a gift this year. And not surprisingly, those for whom the economy is a major factor are significantly more likely to buy their gifts with cash versus credit cards and also more likely to spend that cash at discount stores, such as Wal-Mart and Target.

“So what do we conclude from this data,” asks Peter Mackey, Invoke’s EVP of Research. “We are likely to see some reduction in spending this holiday season, particularly among those earning $50,000 or less who continue to struggle to low unemployment and mortgage woes. But Kids need not worry…Santa will still come for them. Others in the family, however, will have to get their holiday jollies from the good food and companionship.”

Please visit http://info.invoke.com/invoke-live-holiday-shopping-2010/ to view the report.

Logos, product and company names mentioned are the property of their respective owners.

Reader Comments:

Be the first to leave a comment for this article

Tweet