Communications and Technology Industry Research

E-consultancy, Logan Tod and PR agency, immediate future, announced that their research has revealed 64 percent of respondents are likely to reduce their spending in view of the deteriorating economic climate and 56 percent of them will either maintain or actually increase their online spending.

 

The survey attributes this to the fact that consumers are turning online to find both the best available prices and advice in the tough economic scenario of tightening credit, falling house prices and worsening economic conditions, which is impacting overall spending.

 

The survey also showed that while women are more inclined to reduce overall spending during the economic downturn, they are also more likely to consult online reviews (64 percent) than men (58 percent). 62 percent of respondents stated that are more careful when making purchases, by consulting product reviews written by other Web shoppers before buying.

 

Katy Howell, MD of social media specialist immediate future, commented, "The research clearly highlights the importance of online interaction between consumers when faced with purchasing decisions. Whether it is with blogs, comparison sites, or user reviews, brands need to understand and engage with social media to survive the expected economic downturn."

 

The survey highlights the importance for brands to embrace and engage in online consumer dialogues to survive. Online retail has been growing continually in 2008 with online spending up 38 percent in the first half of 2007 in the UK.

 

Matthew Tod, CEO of Logan Tod, explained, "It is clear from this research that online strategies will have to become far more sophisticated to weather the economic slowdown. A one size fits all strategy will no longer be the most effective and online retailers will have to start to segment their audience and match their marketing activity to each group."

 

Among various age groups, 'silver surfers' (aged 55 and over) are least concerned about the economic situation with 43 percent stating that the economy would not affect their spending levels, followed by the 16-24 age bracket at 37 percent.