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Study: Consumers to spend more this holiday season
Abstract: An NPD Group study found that this year, consumers plan to spend more money for holiday gifts than they did last year.
Port Washington, N.Y.--A higher percentage of consumers plan to spend more on holiday shopping than they did last year, furthering evidence that shoppers have a positive outlook heading into the 2015 season.
A total of 15 percent of those surveyed in the NPD Group’s Holiday Purchase Intentions Survey said they’ll spend more this holiday season, up from 12 percent last year. Although the majority of respondents said they’ll maintain their level of spending this season, only 16 percent plan on spending less, compared to 20 percent in 2014.
Based on these consumer intentions, the NPD Group said the mean spend for holiday shopping is $619, a 5 percent increase when compared with last year.
Still, shoppers will be doing research. Nearly two-thirds of respondents said they’ll utilize the Internet and consumer reviews to gain quick, real-life input on products from the people using them, not the people selling them.
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More than 60 percent of those surveyed said they plan to do online research to learn more about a product before they buy it. Others said they’d check out customer reviews (more than 40 percent), TV ads and catalogs (more than 20 percent), or professional reviews, social media websites, magazine and mobile phone apps (all less than 20 percent).
Marshal Cohen, chief industry analyst at NPD Group, said retailers and manufacturers need to pay close attention to what is driving the consumer mindset.
“Positive consumer perceptions combined with holiday promotions could drive early impulse purchases, but the market has to deliver enticing product that consumers want and need in order to build on that momentum and keep them spending,” he said.
In addition, NPD says consumers have a more positive outlook heading into this holiday season as more respondents agreed with statement around giving to those less fortunate and general holiday anticipation, and fewer agreed with negative statements.
“Consumers are more complex, and marketers have more opportunities to reach them than ever before,” Cohen said. “Truly connecting with consumers requires interaction and omnipresence, emphasizing a complete experience that extends beyond channels, beyond traditional methods and beyond the holiday season.”
NPD Group’s Holiday Purchase Intentions Survey was fielded in September to members of NPD’s online consumer panel. In total it was completed by 3,620 individuals ages 18 and older.
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