Corrections or additions?
This article was prepared for the October 24, 2001
edition of U.S. 1 Newspaper. All rights reserved.
Post-September 11: Consumer Priorities Shift
America Online has just started promoting its new
version
7.0 by giving away seven trips to New Zealand. This could be a bad
idea. Jim Lustenader says research on post-September 11 consumer
behavior strongly suggests that offering air travel as a grand prize
is not the incentive it was just a few short weeks ago.
Lustenader is executive vice president, strategic services, of the
DVC Group, a marketing communications firm with headquarters in
Morristown.
Part of 1,250-person DVC Worldwide, the group specializes in
behavioral
advertising. It recently supplied questions for a Harris Interactive
poll of 2,000 consumers, which probed their attitudes and sought
information
on their priorities in what Lustenader says is an unprecedented time
in American history. Asked if he sees any parallels, the marketing
pro, says “In my lifetime, no.”
Lustenader speaks on “Consumer Trends Since September 11,”
at a meeting of the Public Relations Society of America, New Jersey
Chapter, on Tuesday, October 30, at 11:30 a.m. at the Madison Hotel
in Convent Station. Adam Geller, president of National Research,
speaks on political trends. Call 973-984-6184.
Lustenader, a Dartmouth graduate (Class of 1966), who holds an MBA
from Cornell, has been in marketing for his entire career, and with
DVC for 15 years. DVC does behavioral marketing, which means that
it creates promotions through which consumers interact with a product,
whether it be beer or a life-saving drug.
When Labatt wanted to market its beer to young adults, the company
decided to advertise its Rolling Rock brand through a concert in
Latrobe,
Pennsylvania. DVC’s job was to bring non-local potential consumers
into the picture. It did so by creating a website for the concert,
selling tickets through it, and using the website to broadcast the
concert live.
When Sheering Oncology wanted to increase patient compliance with
the regime for Intron-A, its drug used to treat malignant melanoma,
DVC set up a program called Crossing Bridges, through which the
patient
receives help in sticking with the drug, whose side effects are often
substantial, and unpleasant. There is a 24-hour hot line manned by
nurses to answer the patient’s questions, and another hot line to
connect the patient with those who have already completed the
treatment.
And DVC mails out little incentives once a month, maybe coupons for
Gatorade to slack the thirst the drug induces or a Blockbuster coupons
to ease the hours some patients must spent at home because of fatigue.
Family, employer, friends, doctor, and HMO are also included, and
given, among other things, help in answering the patient’s questions
and reacting positively to his struggle with cancer.
Like other marketers, DVC needs to be tuned into what consumers crave
at any given moment, whether it be entertainment at a rock fest or
encouragement in fighting a disease. Some of the things consumers
crave remain the same after September 11, but many have changed, and
quite dramatically. Lustenader suggests that marketers who are aware
of these changes not only will be successful in selling their
products,
but may even play a role in the nation’s psychic recovery. In times
of national crisis, marketers tend to pull back, but Lustenader says
that is exactly the wrong thing to do. “Embrace consumers,”
he says. “Consumers are looking to be embraced.”
The embrace may need to be different, though, because consumers’
priorities
have shifted. Here is a look at how Americans answered the questions
DVC put on Harris’ poll, which was conducted between October 3 and
5.
No more reality. Thirty-nine percent of respondents saidthey would be much less likely to watch reality TV programs. “Theyhave enough reality on the news,” comments Lustenader.Less air travel. Thirty-nine percent said they would bemuch less likely to plan an air travel vacation. Twenty-four percentsaid they would be less likely to enter a sweepstake if the prizewas a trip. “They used to offer trips to Europe as a grandprize,”says Lustenader. Something else may need to be found to place atopthe giveaway pyramid.Fewer new wheels. Thirty-nine percent said they were muchless likely to shop for a new car. Here we see the effects of aneconomicslowdown along with the uncertainly that burst upon us on September11, and that has just kept coming ever since. Manufacturers of allbig ticket items, not just cars, need to be sensitive to this doublewhammy. Lustenader says the auto manufacturers’ financing incentives— zero percent interest in many cases — was a good idea froma marketing perspective.Less time on bar stools. Twenty-four percent said theyare less likely to go to a bar with friends. This, says Lustenader,ties in with a finding that consumers want to cocoon, to entertainmore at home. Twenty-one percent said they are more likely toentertainmore at home, and 18 percent said they plan to prepare big,home-cookedmeals.Less Internet shopping? This one was a surprise. “Ourhypothesis was that people would want to stay at home,” saysLustenader.But no, “they want to socialize,” he says. “They wantnormalcy in their lives.” For many consumers, and especially,the survey finds, for women, that means lots of time at the mall.More money for charity. Fifty-three percent of consumers,says Lustenader, “would be much more likely to buy a productbecausea portion went to relief.” Philanthropy has gotten much stronger,he says, especially in families with children. This impulse to giveextends beyond the relief effort, he says, suggesting that using acharity tie-in could benefit businesses, whether or not that charityis directly related to helping victims of the terror attacks.”Therehas been a groundswell,” he says. “People are more interestedin doing something that has a positive effect.”More money in the cookie jar. Forty-five percent saidthey are reevaluating their finances. “They’re more attentiveto savings,” says Lustenader. In fact, 28 percent said they willsave a larger percentage of their income, and 21 percent said theywill use more coupons.More attention to kids’ use of media. Marketers be aware.Parents, especially moms, said they are now much more likely to screentheir kids’ TV watching, possibly to screen out news images that thechildren could find disturbing. They are keeping a closer eye on thewebsites their kids visit, too.A healthier life, sort of. Twenty-eight percent said theyare much more concerned with living a healthy life. But, Lustenadersays, “they are not more likely to quit smoking.” And thosewho are making a stab at going nicotine free say they are not morelikely to try harder to accomplish that goal.Seeking security in Skippy and Oreos. Twenty-four percentof respondents said they are more likely to stock up on groceries.”It’s the fall out mentality,” says Lustenader. And whileit may be okay to put house brand canned chili on the back shelf,consumers want well-known national brands on their plates. This wasone of the study’s big surprises, says Lustenader. “We expectedto see a shift to store brands because they are more economical,”he says. But, no, “national brands give a sense of security.Consumersdon’t want to upset the routine.”Women much more affected. Another big surprise the surveyturned up is that women’s attitudes and priorities shifted much, muchmore than did men’s after the September 11 attack. Women’s reactionswere more extreme both on the negative and on the positive side. Womenare 16 percentage points more likely to avoid air travel, 6 percentagepoints less likely to shop for a car, and 10 percentage points lesslikely to spend time in a bar with friends. “The differencebetweenmen and women is really quite striking,” says Lustenader. Onereason for the disparity, he posits, is that “women are thegatekeepers.”Survey results are just being put together, but already thelandscape has changed. As horrific as the attacks of September 11were, Lustenader says the anthrax scare could be worse — at leastpsychologically. “Anthrax is different,” he says. “It’sgoing to bring the whole terrorist issue closer to home. It’s onething to watch terror on television. You could get away with `I livein a low rise building in New Jersey.’” Facing the possibilitythat terror could come through the mailbox raises the ante.Anthrax already has affected direct mail advertisers. Lustenader saysthey are being urged to include the name of their product and returnaddress, things some avoided in the belief that consumers would throwaway mail that looked promotional. Now, if still not an overwhelmingpositive, promotional looks good compared with some of the otherpossibilities.For all marketers, says Lustenader, everything has changed because,”consumers have reshuffled the deck on their priorities.”Previous StoryNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
