The world moves around the Sun and economy. Economic climate always determines almost each step of the consumer. Today when the use of online shopping or any other financial operations is so much highly developed e-consultancy, Logan Tod and immediate future research, reveals that 64% of respondents will reduce their spending generally in view of the deteriorating economic climate. 56% consider that their online spending will not be affected, or would increase.

According to the survey there are several reasons consumers address online spending. These are caused by increasing fears surrounding the credit crunch, falling house prices and worsening economic conditions. After all consumers are turning online to find both the best available prices and advice. The growth of online spending in 2008 that is 38% up on the first half of 2007 is mostly caused by the fact that a large proportion of consumers are turning to comparison engines and user reviews before taking the final purchase decision. That proportion presents 62% of respondents.

MD of social media specialist immediate future, Katy Howell comments: “The research clearly highlights the importance of online interaction between consumers when faced with purchasing decisions. Whether it is with blogs, comparison sites, or user reviews, brands need to understand and engage with social media to survive the expected economic downturn.”

Comparison of the different age groups, the ‘silver surfers’ who are aged 55 and over, and 16-24 age bracket shows that ‘silver surfers’ are the least concerned about the economic situation (43%), and the 16-24 age bracket shows that 37% wouldn’t change their spending levels, too.

Matthew Tod, Logan Tod CEO, explains “It is clear from this research that online strategies will have to become far more sophisticated to weather the economic slowdown. A one size fits all strategy will no longer be the most effective and online retailers will have to start to segment their audience and match their marketing activity to each group”


References:
http://www.e-consultancy.com/publications/Online-shopping-and-credit-crunch-survey-report/
http://www.sourcewire.com/releases/rel_display.php?relid=LXAXE&hilite=