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Shoppers’ Belts Remain Tight Despite Economic Improvement

Deloitte: Shoppers’ Belts Remain Tight Despite Economic Improvement

National brand loyalty slides third consecutive year; consumers want household and grocery clicks before trips

NEW YORK, April 16, 2013, Even as the economy improves, 94 percent of Americans indicate they will remain cautious and keep their spending for food, beverage and household goods at its current level, according to Deloitte’s 2013 American Pantry Study.

More than nine in 10 (92 percent) consumers surveyed indicate they have become more resourceful, and 86 percent say they are getting more precise in what they buy — attitudes that have remained consistent in the three years Deloitte has conducted the study, and across income levels.

Despite enduring frugal attitudes, few consumers feel they are making any compromise: More than seven in 10 (72 percent) consumers indicate that, even though they are spending less on household and grocery items, it doesn’t feel like they are sacrificing much, a seven percentage point increase in two years.

Nearly nine in 10 (88 percent) survey respondents report they have found several store brands that they feel are just as good as national brands, and few consumers plan to switch back to national brands: Only 27 percent plan to do so as the economy rebounds, an eight percentage point decline from the previous year.

“One of the most notable year-over-year trends in the study is how embedded frugality has become due to the recession,” said Pat Conroy, vice chairman, Deloitte LLP and consumer products sector leader. “Prudent consumers and improving perceptions about store brands are squeezing national brands’ position. The gap between the few ‘must have’ brands on shoppers’ lists and others on the shelf may be widening, making it more important for brands to differentiate through innovation, quality and performance. Consumer product companies may also consolidate low and mid-level performers and shift investment to the category leaders.”

Brand loyalty declines, shoppers put experimentation on hold

As store brands become more entrenched in the pantry, brand loyalty continues to slide, however consumers appear to be selectively loyal to certain brands.

Brand loyalty dropped for the third consecutive year in the survey. When asked why certain brands are no longer a priority for their households, consumers cited “other brands are available on sale” as the No. 1 reason. However, brands to which consumers are most loyal significantly outpace their lower performing counterparts by 20 or more percentage points on attributes such as performance, experience and trust.

Consumers have also honed in on select brands they will consider. More than eight in 10 (84 percent) consumers say they have a specific set of brands in mind, and will purchase whichever one is on sale. When using coupons, 71 percent indicate they will use them only for items they would have purchased anyway.

Shoppers are also selective about the retail channels where they are willing to purchase certain items. Consumers surveyed shop an average of 2.5 channels in each product category, compared with an average of 5.5 channels (including grocery, mass merchandise, club, drug, convenience, dollar, neighborhood market and online) for all of their food, beverage and personal goods combined.

Loyalty cards’ importance in consumers’ cross-channel shopping has increased, as the number of consumers with three or more grocery loyalty cards has grown from 28 percent in first American Pantry Study in 2010 to 39 percent in the most recent survey.

Additionally, 58 percent of shoppers surveyed use shopper loyalty cards in grocery stores every time they shop, up 14 percentage points in two years, and 30 percent participate in a loyalty program via their smartphone while shopping in a store. Consumers appear to feel a sense of reward from these efforts: Eight in 10 (80 percent) say it is fun to see how much money they can save by using coupons or a shopper loyalty card.

Online options in demand for household goods, grocery; Mobile shopping interest growing fastest among baby boomers

The 2013 American Pantry Study reveals an unmet demand for online shopping options, particularly for in-store pickup and at-home delivery. While 14 percent of shoppers surveyed currently buy consumer products online and pick them up in the store, 43 percent indicate they would like to do so, with strongest demand appearing in food and beverage categories for in-store pickup.

Approximately one in 10 (11 percent) survey respondents purchase online with home delivery, and the number rises to 34 percent among those who would like to do so, primarily for household goods such as laundry soaps and tabletop disposable paper products.

“Consumers are drawn to the convenience of purchasing frequently-used food, beverage and household items online, and brand preferences will likely extend into their online buying habits,” added Conroy. “Consumer product companies can use mobile and online channels to strengthen the functional and experiential brand attributes that translate into conversion and loyalty. They should consider aligning their digital efforts with consumers’ location and context to reach shoppers online and on their phones, blending into their list-making, meal planning, product and price-checking, family activities and health and beauty routines. They may also market channel-specific product offerings and use these platforms to make product suggestions based on target consumers’ prior shopping behaviors.”

The latest American Pantry Study also indicates that interest in mobile technology is growing at a higher rate among baby boomers than younger consumers. Nearly one-quarter (23 percent) of respondents age 45 to 70 indicate they are interested in using mobile coupons they can scan at the checkout, up from 12 percent in last year’s survey, compared with a six percentage point increase among respondents age 21 to 29.

Shoppers surveyed are tapping into their smartphones outside the store nearly as often as they do inside the store. Three in 10 (30 percent) consumers manage a shopping list or recipe while in a store, just three percentage points higher than those who do so offsite during the shopping process.

For more information about the 2013 American Pantry Study, including in-depth survey findings, please visit: http://www.deloitte.com/us/pr/2013APS

About the Survey

The 2013 American Pantry Study was commissioned by Deloitte and conducted online by an independent research company in January 2013. The survey polled a sample of 4,047 consumers and has a margin of error of plus or minus two percentage points.

About Deloitte’s Consumer Products Practice

Deloitte is a leading presence in the consumer products industry, providing audit, consulting, risk management, financial advisory and tax services to more than 80 percent of the Fortune 500 consumer product companies. Delivering insights on the latest consumer product issues, effective practices, technology and operating procedures, Deloitte serves companies across multiple categories including food and beverage, apparel and footwear, personal care, and household products. For more information about Deloitte’s consumer products practice, visit: http://www.deloitte.com/us/consumerproducts

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

SOURCE:

Deloitte
http://www.deloitte.com/us

 

Categories
Personal Finance Real Estate Surveys

Mayflower Study Reveals Americans’ Rising Faith in Housing Market

Mayflower Study Reveals Americans’ Rising Faith in Housing Market

Mayflower reports 16 percent growth in residential moves during Q1

ST. LOUIS, April 3, 2013, With the economy stabilizing, Americans are feeling, once again, the bite of the moving bug.

Nearly half of Americans (47 percent) say they feel more comfortable purchasing a home today than at any other time in the past five years, results of a new survey by Mayflower show. And nearly a third say they are now ready to make a move.

Mayflower, America’s most recognized and trusted moving company, saw evidence of the change in attitude in its own first quarter 2013 results. Compared to first quarter 2012, residential moves were up 16 percent in the historically slowest moving months – January through March.

The new data are also consistent with other national data showing continued rises in existing home prices and sales. Growth appears to be the strongest in the West, where the Mayflower data showed 54 percent of survey respondents are now comfortable purchasing a house.

The data reflect an easing of the wariness Americans have felt in recent years in the aftermath of the bursting of the housing bubble in 2008. Although the average American reports moving six times throughout their adult life, nearly half of Americans (49 percent) say they have put off moving since the bubble burst nearly five years ago. Of those surveyed who had delayed a move, 37 percent cited economic instability as the main reason while another 31 percent blamed the declining real estate market.

Among those now interested in searching for a new home within the next year, the survey showed the desire for a new or better home is the leading motive. Other important motives include a desire for a more attractive neighborhood and the desire to become a homeowner.

Most mobile are the young, with half of Millennials (18-34 years old) more receptive to buying a home than renting and looking to move within the next year. While younger consumers would be more likely to move due to a change in employment or a growing family, half of adults over the age of 65 would consider moving in the next year because of retirement.

Despite the readiness to upgrade their living situations, Americans do acknowledge that moving is a stressful, and often dreaded, life event. Many survey respondents (44 percent) would rather go a week without Internet than move. Another 52 percent would prefer a trip to the dentist, and 15 percent even went as far as to say a root canal would be more enjoyable. Of all the stages of the moving process — planning, scheduling the move, packing, transporting the items and unpacking — 41 percent of people agree that packing is the most stressful part.

To ease the stress of a move, Mayflower offers a variety of services such as full-service moves that include packing, loading and transporting all of a customer’s belongings as well as PC and network assembly and the ability to track your belongings online from doorstep-to-doorstep. People who have had the opportunity to utilize a full-service moving company during their last move almost unanimously (98 percent) say they prefer it.

“We are ready to respond to the surge of moves with services, features and technology that make moves hassle-free and uncomplicated,” said Carl Walter , vice president of Mayflower Moving. “Moving is one of the most stressful and overwhelming times in a person’s life. We offer customers instant on-site estimates and personalized moving websites that significantly simplify the process.”

The peak moving season begins in May and will continue until September. Mayflower offers these tips to help consumers save time and money throughout their move:

  • Move on a weekday. Weekends are the time when most people want to move, but on weekdays, moving trucks often go unused. Book a truck on a Monday or Tuesday and use the weekend to prep for the movers’ arrival.
  • Move in the early part or middle of the month. A lot of household moves happen at the end of the month, which means prices will be higher.
  • If given a choice, avoid moving in the summer, especially June and July. You can save big on your moving costs.
  • Book in advance. Once you know the date of your move, book your mover right away.
  • Do some of your own packing. You can easily pack clothes, blankets, pillows and other non-fragile items yourself. For the breakable items, considering letting professionals pack them to avoid having to replace broken items.
  • Consider a do-it-yourself option like a container. Portable moving and storage containers allow you to pack and load your things at your own pace. A professional will pick up your loaded container and deliver it to your new home, so you don’t ever have to drive a truck.
  • Look for a company that offers cash back options on your real estate transaction. Mayflower’s CityPointe® program allows customers to earn cash back on the price of the home they buy or sell simply by using a realtor from a carefully qualified list of agents. In some cases, the cash back can cover the cost of your move.
  • Bundle other services into the price of your move. Look for a carrier that can arrange for services like cleaning, PC and network assembly and disassembly, and ID theft protection. Bundling these services with the cost of your move can help you save hundreds of dollars compared to hiring separate companies for each service.

Survey Background and Methodology
Respondents to the survey were selected from Research Now’s Consumer panel to reflect a general distribution of the consumer population over 18 years of age. 1,020 respondents completed the survey without knowledge of Mayflower’s sponsorship. Demographic descriptions:

  • Millennial represents people between the ages of 18-34.
  • Gen X represents people between the ages of 35-49.
  • Boomer represents people between the ages of 50-64.
  • Pre-Boomer represents people older than 65 years old.
  • The Research Now panel represents a wide range of consumers, including a subgroup of respondents that have moved within the last five years.

About Mayflower
Mayflower is America’s most recognized and trusted moving company. Together with its sister company Mayflower Containers, Mayflower offers a full range of moving services from full-service to do-it-yourself moving and storage. With headquarters in suburban St. Louis, Mayflower maintains a network of 300 affiliated agencies. For more information about Mayflower Transit and its services, visit Mayflower.com or find us on Facebook: www.facebook.com/MayflowerMoving.

SOURCE:

Mayflower

 

 

Categories
Assets Banking Finance Financial News Mortgages Personal Finance Real Estate Surveys Wealth

Experts Predict Annual Home Value Growth To Exceed Pre-Bubble Rates Over Next Five Years

118 Experts Predict Annual Home Value Growth To Exceed Pre-Bubble Rates Over Next Five Years

Survey Benchmark Changes; Path of U.S. Zillow Home Value Index Predicted to Show Cumulative 22 Percent Increase Through 2017

SEATTLE, March 18, 2013, A nationwide panel of more than 100 professional forecasters expects home values to end 2013 up an average of 4.6 percent and rise cumulatively by 22 percent, on average, over the next five years, according to the first quarter Zillow® Home Price Expectations Survey. Additionally, a majority of panelists indicated support for policies that would allow certain underwater homeowners to refinance at today’s low rates.

The survey of 118 economists, real estate experts and investment and market strategists was sponsored by leading real estate information marketplace Zillow, Inc. (NASDAQ: Z) and conducted by Pulsenomics LLC. This is the first survey edition that utilized the U.S. Zillow Home Value Index (ZHVI)[i] as the reference benchmark for the panel’s home price expectations[ii].

Survey respondents predicted home values will rise another 4.2 percent on average in 2014, before moderating somewhat to annual appreciation rates between 3.6 percent and 3.8 percent for 2015, 2016 and 2017. On average, panelists predicted home values to rise 4.1 percent annually from 2013 through 2017, exceeding the pre-housing bubble (1987-1999) average annual appreciation rate of 3.6 percent. This is the first time the predicted average annual growth rate for the next five years has surpassed pre-bubble levels since the survey’s inception three years ago.

“The panel is quite bullish on home prices near-term, considering a pre-bubble average appreciation rate of 3.6 percent per year,” said Zillow Chief Economist Dr. Stan Humphries. “That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains. The panel expectations are consistent with continued strong home value growth this year fueled by tighter-than-normal inventory of for-sale homes and robust demand attributable to high affordability and a stronger general economy.”

The most optimistic quartile[iii] of panelists predicted a 6.1 percent increase in home values in 2013, on average, while the most pessimistic[iv] predicted an average increase of 3 percent. Through 2017, panelists predicted cumulative home value changes of 22 percent, on average. Expectations for cumulative home value change projections ranged from 34.2 percent among the most optimistic quartile to 11.7 percent among the most pessimistic, on average.

GSE Wind-Down Period and Refinance Options For Underwater Borrowers

The first quarter 2013 Zillow Home Price Expectations Survey asked the panel to indicate their view of a reasonable timeframe for “winding-down” government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac; and to weigh in on the debate over the merits of providing new refinancing options to underwater homeowners who are current on their mortgage payments.

The majority of panelists (59 percent) indicated that a reasonable and appropriate timeframe for winding-down the GSEs is within the next five years. On the opposite ends of the spectrum, 13 percent suggested a timeframe within the next two years, and 10 percent said they believe a period of more than 10 years is sensible.

Existing proposals that would facilitate refinancing of certain underwater borrowers include the Responsible Homeowner Refinancing Act of 2012, sponsored by Sens. Barbara Boxer (D-Calif.) and Robert Menendez (D-N.J.), and the Rebuilding Equity Act sponsored by Sen. Jeff Merkley (D-Ore.). The majority of respondents said they supported these types of policy initiatives.

“More than four of every five supporters of these refinancing proposals said they believe that borrowers who have demonstrated an ability to make their payments in recent years would pose little or no incremental risk to taxpayers if they refinanced. Two-thirds of supporters said they believe that the lower monthly payments would create a significant stimulus for the economy,” said Terry Loebs , founder of Pulsenomics LLC. “But the 41 percent of panel respondents who do not support these plans also hold strong views. More than two-thirds of them said they believe that rewriting loan contracts is bad policy in general, and that lowered monthly payments for borrowers ultimately translate into taxpayer and investor losses.”

Additional details regarding this portion of the survey are available at www.pulsenomics.com.

This is the 17th edition of the Home Price Expectations Survey. It was conducted from Feb. 22, 2013 through March 7, 2013 by Pulsenomics LLC on behalf of Zillow, Inc.

For full survey results and graphics, please visit Zillow Real Estate Research or www.pulsenomics.com.

About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Buyfolio™, Mortech™ and HotPads™. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.

About Pulsenomics:
Pulsenomics LLC is an independent research and consulting firm that specializes in data analytics, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health.

[i] The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.
[ii] Previously, the survey benchmark was the S&P/Case-Shiller U.S. National Home Price Index (single-family properties, not seasonally-adjusted). For a summary comparison of the survey benchmarks prepared by Pulsenomics, please click here.
[iii] Based on the 25 percent most optimistic panelists in terms of cumulative home price change through 2017.
[iv] Based on the 25 percent most pessimistic panelists in terms of cumulative home price change through 2017.

SOURCE:

Zillow, Inc.

 

 

Categories
Personal Finance Real Estate Surveys

Almost Two in Three Renters Lack Renter’s Insurance

Almost Two in Three Renters Lack Renter’s Insurance

SAN FRANCISCO, March 11, 2013, Only 34% of Americans who rent their homes or apartments have renter’s insurance, according to a new survey released today by InsuranceQuotes.com, a Bankrate (NYSE: RATE) company.

InsuranceQuotes.com also found that 60% of Americans incorrectly pegged the annual cost of renter’s insurance at $250 per year or more. Twenty-one percent thought renter’s insurance cost a whopping $1,000 per year or more. The correct answer (according to the National Association of Insurance Commissioners) is $185 per year.

“Renter’s insurance is a lot more affordable than most people think,” said Laura Adams , senior insurance analyst, InsuranceQuotes.com. “Most renters don’t realize that their landlord’s insurance usually only covers the structure and not the renter’s belongings. And even in a safe area, renters can fall victim to theft, fire, water damage or another calamity. Fifteen dollars a month is a small price to pay in order to protect your possessions and liability in a lawsuit.”

The InsuranceQuotes.com survey found that the most common reasons for lacking renter’s insurance are “my apartment or rental home has good security” (cited as an important reason by 57% of those who lack renter’s insurance), “renter’s insurance is too expensive” (52%) and “my landlord has insurance” (48%).

InsuranceQuotes.com also found that only 28% of those who have renter’s insurance received the recommended three or more policy quotes before purchasing.

Consumers can compare quotes for renter’s insurance and other types of insurance policies at www.InsuranceQuotes.com.

The survey was conducted by Princeton Survey Research Associates International (PSRAI) and can be seen in its entirety here:

http://www.insurancequotes.com/insurance-for-renters

PSRAI obtained telephone interviews with a nationally representative sample of 1,004 adults living in the continental United States. Telephone interviews were conducted by landline (500) and cell phone (504, including 254 without a landline phone). Interviews were done in English by Princeton Data Source from February 7-10, 2013. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.5 percentage points.

About InsuranceQuotes.com:

InsuranceQuotes.com provides consumers with a free, easy way to shop for and compare insurance quotes online, and delivers information about auto, home, health and life insurance and other types of insurance.

For more information, visit InsuranceQuotes.com.

InsuranceQuotes.com is part of Bankrate Insurance. Other Bankrate Insurance companies include NetQuote.com and InsureMe.com.

For More Information:

Ted Rossman
Public Relations Manager, Bankrate, Inc.
ted.rossman@bankrate.com
917-368-8635

SOURCE:

InsuranceQuotes.com

 

Categories
Corporate Investing Stocks Surveys Technology

Survey of Global Public Companies Finds Investor Relations Professionals Ready to Engage Investors with Mobile Technologies

Survey of Global Public Companies Finds Investor Relations Professionals Ready to Engage Investors with Mobile Technologies

IROs from Leading Companies Know Investors Want Mobile Communications; IROs Still See Barriers to Executing Mobile IR Strategies and Publishing Apps

NEW YORK, Feb. 19, 2013, Investor Relations professionals at public companies plan to embrace mobile technologies and incorporate them into their communications strategies this year, according to a survey conducted by theIRapp™, the investor relations app building technology platform that allows public companies to optimize their IR content for iPhone, iPad and Android mobile devices.

As part of theIRapp’s™ work to help the IR industry understand and embrace new technology, the company surveyed more than 100 IROs during the course of January, 2013. theIRapp gathered opinions and thoughts on how these professionals view the importance of mobile technology to their work communicating with investors, and how they plan to incorporate it this year and in the future. The IR executives offering insight covered small, medium and large market capitalization companies across diverse industries. Notable names of companies responding to the survey include McDonald’s, Urban Outfitters, and Hewlett Packard.

Survey results showed:

  • 88% of IROs recognize the importance of mobile to their work as communications professionals and believe that public companies need to develop a mobile IR strategy in the coming year(s);
  • 57% of IROs believe investors now require faster access to IR content via mobile devices as compared to traditional sources.

Notwithstanding the above findings, more than 78% of companies currently do not use mobile devices for their IR communications.

With respect to their views on the landscape of mobile IR, the IROs surveyed said the following:

  • 91% believe the same amount or more companies will consider publishing an investor relations app this year;
  • 41% do not want to be first in their industry; they want to see other companies publish an IR app;
  • 21% want to follow the leaders; they want to see larger companies publish IR apps first;
  • 38% think investors are still tied to their desktops; they want to see deeper adoption of mobile devices across their investor base before embarking on a mobile strategy;
  • 67% think the SEC will react in the near future to the use of mobile technologies/apps for investor communications and for Reg FD disclosure purposes ;
  • 35% have not implemented a mobile strategy because of budgetary constraints.

Qualitatively, IROs surveyed believe that more companies will launch IR apps and mobile strategies in 2013:

  • Because they want to enhance their communications with investors and stay current with technological advances;
  • Because they are looking for ways to be more transparent;
  • When more prevalent and reliable wireless connectivity exists;
  • To expand their investor base, particularly with individual/retail investors.

Commenting on the survey, Jeff Corbin, co-founder of theIRapp, said, “The use of mobile technology and IR apps in communications is a new and emerging category. Companies are only beginning to recognize the power of mobile to shareholder engagement and communications as can be seen by the fact that today only approximately 100 native IR apps can be found in Apple’s App Store and the Google Play Market. While these tend to belong to larger corporations like Walmart, Marathon Oil and Campbell’s Soup, companies with smaller market capitalizations are also starting to embrace IR apps as a way to communicate with their investors who increasingly are on the go and not tied to their office desktop.”

He continued, “We now find ourselves at a very exciting time in the IR industry. There is a complete paradigm shift underway with respect to how people communicate with each other. To the extent mobile technologies offer companies the ability to push information and engage directly with investors via their very personal mobile device, the IR industry must consider and rethink how investors are now consuming information.”

“In or around 2000, the IR section of the corporate website was a nice to have and was unregulated by the SEC. Now it is an accepted means through which to communicate and every company must have one. Given what we have seen over the past couple of years with the proliferation of mobile, and as was confirmed by theIRapp’s survey, no one can question that mobile devices and apps are here to stay and just as the IR section of the corporate website is now a must have, so too will be the case with IR apps.”

For more information on the survey, please visit www.theirapp.com or contact theIRapp at info@theIRapp.com or 212-896-1255 Media contact Joe McGurk jmcgurk@kcsa.com/ 212.896.1231.

About theIRapp™

theIRapp™ (www.theIRapp.com) is a turnkey mobile investor relations application building solution available to all publicly traded companies listed on all global stock exchanges. It enables a company’s investor relations information to be downloaded via Apple’s App Store on the iPhone and iPad as well as Google Play for Android devices. theIRapp is a simple way for investors to engage with critical company and stock information. theIRapp delivers easy sharing of content with colleagues and friends as a next generation IR solution for establishing transparency, building shareholder loyalty, and expanding an investor following.

By providing a company’s ticker symbol and logo, a public company can have its own customized app available as a free download for millions of investors in less than three weeks. Through theIRapp, retail and institutional investors have access to automated, real-time stock price information (via live data feeds), press releases, SEC filings, analyst coverage, corporate documents (fact sheets, presentations, etc.), videos, audiocast conference calls, upcoming events and other custom company information.

SOURCE:

theIRapp