CHICAGO, April 21, 2003 (PRIMEZONE) -- The cost of gasoline and prescription drugs again topped the annual survey by CoolSavings, Inc. (OTCBB:CSAV) that asks their members to vent on the cost of consumer goods and services. For the second year in a row, most consumers (38 percent) said they are most upset with gasoline prices. Prescription drugs ranked second (20 percent), within one point of its score in last year's survey.
Taxes posted the largest year-to-year gain, with a 40 percent increase in response. Despite a tax cut for many Americans last year, 14 percent of consumers vented on taxes in the 2003 survey, compared to 10 percent in the 2002 survey.
Back to Basics -- a Simple Approach to Saving
It's "back to basics" for consumers who want to save on gas and drugs, as well as to address the rising cost of phone, cable, taxes and tuition. In selecting multiple tactics to "ease the squeeze" in these tough economic times, respondents gravitated toward basic money-saving strategies:
To save money on gas, 53 percent of CoolSavings' members said they would consolidate trips to cut drive times. At the same time, 31 percent are doing nothing, 12 percent are switching to a lower grade, 7 percent are buying a more economical car, 6 percent are using carpools and 6 percent are using public transportation.
Likewise, 49 percent said they ask for generic drugs to save money on prescriptions. Another 34 percent are doing nothing, but 15 percent are using mail-order, and 17 percent are taking a preventive care approach. Just a few are using a holistic health approach (6 percent).
"Consumers are most upset with the cost of gas and drugs again this year, and there is an active group of consumers who are getting 'back to basics' to save money on these necessities," said Matt Moog, president and chief executive officer of CoolSavings, Inc. "Their methods for dealing with price frustration reflect their need to save time and money, both of which American families are short on these days."
Many "Doing Nothing" to Change Less-Worrisome Costs
For items that cause consumers less concern, most are "changing nothing" to address rising costs. Cable cost upset 15 percent of respondents, and 54 percent are doing nothing about it. Rising taxes concern 14 percent, and 49 percent are doing nothing; phone bills upset 7 percent, with 43 percent not changing anything; and the rising cost of tuition concerns only 6 percent, with 66 percent of respondents doing nothing.
Of the items listed below, which are you most upset with
because of its current cost?
2002 2003
Cable bill 18% 15%
Gasoline 37% 38%
Phone bill 8% 7%
Prescription drugs 21% 20%
Taxes 10% 14%
Tuition 6% 6%
The survey is part of an ongoing series that CoolSavings conducts through their Web site www.coolsavings.com on consumer attitudes toward spending and saving, and how costs affect purchase behaviors. Consumers visit coolsavings.com to take advantage of valuable savings and information on brand-name stores, products and services.
CoolSavings conducted the online survey between April 1 and April 10, 2003. The survey sample comprises 2,714 unique responders.
NOTE TO EDITORS: The full data report and detailed geographic information are also available.
About CoolSavings
CoolSavings is an online direct marketing and media company that provides smarter solutions to help marketers reach their target consumers. Combining a broad distribution network, sophisticated analytics and proprietary technology with superior customer service, CoolSavings enables a wide variety of advertisers to identify and engage their best customers among our more than 25 million registered households.
CoolSavings is a registered trademark of CoolSavings, Inc. Other product and company names herein may be trademarks of their respective owners.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release regarding CoolSavings' business that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements under "Business Outlook" and other statements regarding the Company's expectations, beliefs, hopes, intentions or strategies. Where possible, such forward-looking statements have been identified by use of words such as "target," "forecast," "budget," "believe," "expects" and similar expressions. Known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in this press release, may cause CoolSavings' actual results and performance to differ materially from the future results and performance expressed in, or implied by, such forward-looking statements. Among these risks are the Company's ability to obtain additional debt and/or equity financing, the uncertainties related to CoolSavings' unproven business model in a rapidly evolving marketplace, and CoolSavings' ability to protect its patents, trademarks and propriety rights. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by CoolSavings, For further discussion of some of the risks, uncertainties and other factors which could cause actual results to differ from those expressed in, or implied by, the forward-looking statements, see "Risk Factors" in CoolSavings' Form 10-K, as filed with the SEC. CoolSavings undertakes no obligation to update or revise any forward-looking statements as a result of new information, future events or developments or changed circumstances.