Consumer response

A new Deloitte survey found that 74% of Americans believe higher prices could slow their spending in the months ahead. Furthermore, Deloitte concluded from the survey results that U.S. households are taking note of inflation and other events that could curb their willingness to spend.

The study also revealed that mobile and social connections are helping shoppers make savvier buying decisions in the wake of the recession.

More than seven out of 10 (71 percent) respondents cite concerns about higher energy prices, up from 54% at this time last year, and nearly one-half (47%) point to higher medical costs. Additionally, 44% indicate political unrest in other countries as a factor that could cause them to lower their spending.

"Consumers continue to be resilient and give retailers reasons to be optimistic, despite their apparent lack of confidence in the economy," Alison Paul, vice chairman and U.S. retail sector leader, Deloitte LLP, said in the statement. "With day-to-day expenses on the rise, retailers must be innovative and offer more than just low prices to attract customers. By interacting more intimately with consumers through mobile, social media and other emerging platforms, and articulating a message of value and quality, retailers will do well with worried shoppers."

The online survey was conducted for Deloitte by an independent research company between March 1 and 3, 2011. The survey polled a sample of 1,050 consumers and has a +/- 3% margin of error for the entire sample.

SURVEY FINDINGS
• 43% of consumers surveyed feel the economy is still in a recession.

• Nearly half (45%) of households earning $100,000 or more say their confidence in the economy has improved over the past six months, compared to 24% among those earning less than $100,000.

• Just over one-quarter (27%) of consumers surveyed say stores are offering more value for their money, down from nearly half (45%) of consumers who said so at this time last year.

• 60% search more online to get the best product or price.

• When referring to the in-store experience, 54% reported less sales help in the stores.

• Almost one-third (32%) said stores are running out of merchandise faster, and shoppers appear to be turning to their mobile phones to locate product inventory and seek guidance in the shopping process.

• Among survey respondents who own a Web-enabled smartphone (32%), more than four out of 10 (43%) said they have used it specifically in a store to assist in their shopping; 37% wanted to use their phones while in a store but couldn’t because of connectivity issues.

• Additionally, four out of 10 (40%) consumers surveyed interact with retailers through social networking sites to find out about promotions, browse products, or review recommendations.