M&C Saatchi releases “Reacting to Recession”
This report claims to explain how the different types of consumers are reacting to the recent credit crisis going off around the world. In total it is split into 8 groups of people according to their behaviour and attitude.
Below is a brief summary of the report:
Crash Dieters – Reacting dramatically to the crisis these people are cutting out every penny they can which they don’t NEED to spend. They will also try to save as much money on the essential items until an improvement occurs.
Scrimpers – These people are trying to live their ordinary life but at a much cheaper rate, things like exchanging their exotic holidays for a weekend away in Skegness and downgrading their brands of clothing.
Abstainers – Not changing much in their lifestyle but holding off making that planned big purchase until a later date. For example, putting that new car on hold until you are financially stable again. Unless new offers come out which are buy now pay later.
Clothcutters – These people are aware of the situation and plan on substituting their priorities accordingly, so because they have been staying in at the weekends so they can afford to buy a new TV. If they don’t go on the planned holiday they will be able to buy that new car they want.
Treaters – Accepting the fact that times are hard they will tighten the belt but in return reward themselves every now and again for doing so.
Justifiers – These are not frightened to spend money, they just need to find a reason to. They will be more than happy to buy something on a limited offer or a once in a lifetime deal.
Ostriches – Carrying on as if nothing has happened this type of person will remain on buying items left, right and centre. Often the younger generation who are not willing to change their behaviour are in this group.
Vultures – This group will be able to identify the bargains a mile away, they love a good financial crisis to take advantage of all of the deals they can obtain. Especially on the property market as house prices fall dramatically.
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Interestingly, you can also spot these types of divisions within business to business marketing (how a client will react to the recession). It’s an interesting phenomenon to observe.