COLUMBUS, OH--(Marketwire - June 28, 2010) - Contrary to recent reports, upper income consumers are also feeling the effects of the sluggish economy, according to a recent analysis of the BIGresearch® June Consumer Intentions and Actions® Survey (CIA™) (N=8486). Although consumer confidence among consumers with a household income of $100K+ (35.3%) is higher than Adults 18+ (30.2%), levels for both segments remain flat since June 2009 (34.5% v. 30.2%, respectively), a point that appears to be reflected in purchase intentions.
A higher percentage of $100K+ HH Income Consumers plan to make big dollar purchases compared to Adults 18+, but overall percentages for both segments remain relatively flat from June 2009. Year-over-year, planned purchases are flat for car/truck and home improvement/repair among $100K+ HH Income Consumers (after having increased for a short time as a result of stimulus packages). However, there seems to be a glimmer of hope in the electronics category as more high income consumers are planning to buy computers and TVs, up slightly from last year but down slightly from pre-recession levels in June 2007.
| Plan to Purchase in the Next 6 Months | |||||
| $100K+ HH Income | Adults 18+ | ||||
| June 2009 | June 2010 | June 2009 | June 2010 | ||
| Computer | 13.6% | 17.8% | 9.9% | 12.2% | |
| Car/Truck | 13.5% | 13.5% | 10.2% | 10.5% | |
| TV | 10.7% | 11.4% | 9.1% | 9.7% | |
| Home Improvement/Repair | 14.5% | 14.4% | 8.3% | 7.2% | |
| Home Appliances | 7.3% | 9.8% | 5.5% | 6.1% | |
| Digital Cameras | 5.7% | 5.8% | 4.9% | 5.5% | |
Source: BIGresearch® CIA™, June 2009 & 2010
For a complimentary trends report, including $100K+ HH Income Consumers, $75K+ HH Income Consumers and Adults 18+: http://info.bigresearch.com.
With the expiration of the homebuyer tax credit, tight lending standards and overall high unemployment rates, the housing market is also slow to rebound. Purchase intentions for homes among $100K+ HH Income Consumers (4.0%) are up slightly from June 2009 (3.1%), while 3.4% of Adults 18+ plan to buy a home (v. 3.3% a year ago).
Reluctance to spend is further shown by the percentage of consumers keeping an eye on their budget; 33.9% of $100K+ HH Income Consumers have become more budget conscious in the last six months, compared to 40.7% of Adults 18+. Almost half (44.5%) of upper income consumers say they are focusing more on needs over wants, compared to 53.8% of Adults 18+. While fewer upper income consumers are tightening their purse strings compared to consumers overall, it is evident that the current economic state is impacting consumers at all income levels.
About BIGresearch®
BIGresearch® consumer intelligence provides analysis of behavior in areas of products and services, retail, financial services, automotive and media. The BIGresearch Consumer Intentions and Actions® Survey (CIA™) of 8,000+ respondents is conducted monthly and the Simultaneous Media Usage® Survey (SIMM®) of 15,000+ respondents is conducted semi-annually. More information is available at http://www.bigresearch.com.
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