Consumers by majority will not spend the incentives being handed out by the Federal Government a new research study has revealed. When asked what they would do with a $1,000 hand out only 17% said that they would spend the money according to Sydney based research group StollzNow.
The research Company has also claimed that in an economic downturn, more than a quarter of Australians are most likely to remain loyal to companies that provide them with the best service. The claim is supported by Greg Smith the CEO of Clive Peeters who claims that the big difference between what his Company offers and Harvey Norman or JB Hi Fi is service.
The research has also revealed that perceived discounters like Big W. JB Hi Fi, Target and Kmart will benefit as consumers shop for lower priced products.
StollzNow claims that a recent research study of consumer attitudes reveals that: 47 per cent of all respondents had suffered a negative customer experience in the last six months. 79 per cent of consumers have stopped doing business with an organisation because of a bad experience and that 71 per cent tell others about their negative customer experiences with the main aim (69 per cent) being to prevent other consumers doing business with the company at fault.
The research group went on to claim that even at the best of times these statistics are likely to have a significant impact on an organisation’s bottom line in terms of lost business. However, the financial ramifications are potentially exacerbated when considered against the backdrop of consumer spending trends such as:
· 35 per cent of consumers have already decreased both online and retail spending
· In the next six months 35 per cent of consumers are likely to decrease spending in retailers and 29 per cent will decrease online spending
· 36 per cent said that will buy the same number of Christmas presents as last year but at a lower spend per person, 27 per cent will try to buy fewer presents.