Shopper psychology

A new index from the Kellogg School of Management at Northwestern University finds this year’s shoppers may not be your average consumers.

The Kellogg Shopper Index says this year’s biggest holiday spenders include those who have had a significant increase in perceived security around their income and job. The index is a new, ongoing study of consumers and their spending habits, connecting academic rigor with the practice of marketing. It “explores how underlying consumer psychology and changes in household finance affect consumer shopping behaviors and trends,” noted a statement from the school.

Preliminary data was collected between October 26 and November 16, via an online survey of approximately 1,200 consumers. Based on the self-reported results of the panel, the researchers identified several overarching trends driving holiday spending this year.

INDEX FINDINGS
• Participants who had a significant increase in their income, perhaps from getting a new job, indicated they would spend 16% more in holiday gifts versus last year.

• Participants who said they experienced a decrease in income, due to a job loss or pay cut, for example, plan to spend 9% less compared to 2009.

• People who feel more secure about their job this year plan to spend 10% more on holiday gifts. Those with relatively stable job security said they will spend 2% more. People whose job security has worsened noted they will spend 4% less this year.

• Highly materialistic panelists said they would allocate 34% of their holiday gift budget on themselves and 66% spent on gifts for others. Less materialistic participants said they will spend only 17% on themselves and 83% on gifts for others

• Two groups indicated they would spend more on holiday gifts as compared to last year: People who buy premium gifts for themselves or others, and "deal shoppers" looking for value.