According to a new Ad-ology Research study, Advertising's
Impact in a Soft Economy, more than 48% of U.S. adults believe that
a lack of advertising by a retail store, bank or auto dealership during
a recession indicates the business must be struggling. Conversly, a
vast majority perceives businesses that continue to advertise as being
competitive or committed to doing business.
C. Lee Smith, president and CEO of Ad-ology Research, says "It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand... advertising... assures consumers of a business' reliability... "
The study finds advertising appears to play a key role in consumers’ view of how a business is doing, and by not advertising, businesses may be sending a warning signal to current and potential customers.
Other key findings include:
- 40% of consumers use coupons more now than a year ago
- Most consumers are as willing or more willing to pay more for ‘healthy' or ‘organic' products than they were a year ago
- A ‘deeply discounted price' was the number-one factor that would make consumers more likely to purchase a big-ticket item (+$1,000)
- TV, newspaper, direct mail, and Internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action
- Store Web sites ranked second only to search engines as the way consumers research products and shop online.
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