As Coronavirus spreads nationwide, a recent survey by First Insight found that news of the virus is impacting the shopping behavior of 75% of respondents, up from 45% (a 70% increase) when comparing to a survey fielded in late February. The survey by First Insight, Inc., the world’s leading technology company transforming how retailers make product investment and pricing decisions, also pointed to significant swings in behavior by women and Baby Boomers over the last three weeks. Both groups had been slower to change behavior based on Coronavirus fears than their gender and generational counterparts, but are now in greater alignment. For example, 71% of women now say that the virus is impacting where and how they shop, a 115% increase from late February, compared to 67% of men (a 76% increase). Similarly, while Millennials report the greatest impact on purchase decisions (80%, a 48% increase from the previous survey), Boomers have now aligned behavior more with their younger counterparts with 73% saying the same, a 121% increase from the prior survey.
“As the number of Coronavirus cases increases, the governments have reacted appropriately, with more restrictions on movement and face-to-face interaction coming every day. This certainly has affected people and their perceptions of the world around them,” said Greg Petro, CEO of First Insight. “This survey shows a significant shift in behavior as consumers adapt to their new reality, whether it’s increasing purchases of staple items, moving more shopping online, or cutting spending in some areas. The world looks very different than it did three short weeks ago, and things are likely to look different three weeks from today. Retailers, brands and manufacturers need to continue to be vigilant in providing the products customers need and want, both now and in future seasons. But, just as importantly, they need to understand what consumers want and how they feel today and into the future. That requires understanding the shifts in supply, demand, and customer preference. The only way to understand that shifting environment is to engage with their customers via tools like First Insight.”
The results of the survey were announced today. Download the infographic to see all the key findings from the study here.
Other significant generational and gender findings include:
- Women Surpass Men on Impact of Virus on Shopping Behavior: 59% of women surveyed said that the virus was impacting how much they spent on products, compared to 56% of men.
- More Men Stockpiling Groceries and Cutting Back on Spending: With 46% of all respondents buying more products in anticipation of Coronavirus, 47% of men say they are stockpiling groceries in particular, compared to only 38% of women.
- Boomers Show Greatest Shift in Behavior Compared to Other Generations: Immobility has had a dramatic affect over the last three weeks, with 71% of Baby Boomers saying it has impacted where and how they shop, up 173% from the last survey.
- Baby Boomers Less Inclined to Cut Back on Spending than Other Generations While 47% of respondents are cutting back on spending overall, only 38% of Boomers say they are reducing their spend in preparation for greater Coronavirus spread.
- Baby Boomers Show Greatest Increase in Those Stockpiling Groceries: Similar to men, Baby Boomers are the generation showing the greatest increase over the last three weeks, with 34% now saying they are stocking up versus only 10% last survey, a 240% increase.
Women Surpass Men on Impact of Virus on How Much they Spend
59% of women surveyed (and 57% overall) said that the virus was impacting how much they spent on products, compared to 56% of men. This represents a significant shift in behavior since the last survey, when 32% of men and only 25% of women felt the same. Similarly, while an equal number of both men and women felt it was affecting the products they purchase, this was a 136% increase for women, compared to a 75% increase for men.
More Men Stockpiling Groceries and Cutting Back on Spending
47% of men say they are stockpiling groceries compared to only 38% of women. This is a 114% and 111% increase over last time, respectively. Men also show greater shifts toward cutting spending, as reported by 54% of men versus only 42% of women who took the survey. This is a 54% versus 24% increase respectively compared to the last survey.
Boomers Show Greatest Shift in Behavior Compared to Other Generations
74% of Baby Boomers (and 71% of respondents overall) report the Coronavirus impacting how often they go out in public, a 164% increase from the last survey. This immobility has had a dramatic affect over the last three weeks, with 71% of Baby Boomers saying it has impacted where and how they shop, up 173% from the last survey. Other generations including Generation Z (65%), Millennials (72%) and Generation X (72%) show similar impact, but a much less dramatic increase from the last survey.
Baby Boomers have also shifted their shopping to online significantly over the last few weeks. While overall 34% of respondents are shopping more online, more Generation Z (37%), Millennials (42%), and Generation X (35%) have increased their shopping online compared to Baby Boomers (23%). Only 8% of Baby Boomers reported shifting to online in the first survey; the growth to 34% represents a 187% increase.
Similarly, while 49% of overall respondents are shopping less frequently in-store, Baby Boomers show the greatest%age increase for shopping less frequently in-store (48%), bringing this generation on par with younger generations including Millennials (50%) and Gen Z (51%). The number of Baby Boomers shopping less in-store increased 118% over the last three weeks, a significantly larger jump than other generations.
So Far, Baby Boomers Less Inclined to Cut Back on Spending than Other Generations
Fewer Baby Boomers are cutting back on spending compared to other generations, even since the time of the last survey. Only 38% of Boomers say they are reducing their spend in preparation for greater Coronavirus spread, compared to 54% of Generation X, 49% of Millennials and 51% of Generation Z.
Baby Boomers Show Greatest Increase in Those Stockpiling GroceriesWhile 42% of respondents overall admit to stocking up on groceries, more Millennials (47%) and Gen Z (49%) are doing so than other generations. That said, Baby Boomers have shown the greatest increase over the last three weeks, with 34% now saying they are stocking up versus only 10% last survey (240% increase).
Similarly, Baby Boomers show the greatest%age increase in the outbreak’s impact on spending on products as well as services. More than half of Baby Boomers (52%, compared to 66% overall) reported an impact on how much they are spending on products (a 174% increase over last time). While Generation Z (51%), Millennials (65%) and Generation X (64%) said the same, Baby Boomers showed the greatest shift overall. However, when considering impact on services such as restaurants, entertainment and travel (64% overall reported an impact), Baby Boomers showed the greatest%age increase with 64% (a 112% increase) versus 62% of Generation Z (100% increase), 65% of Millennials (48% increase), and 70% of Generation X (53% increase).
Product Availability and Shortages Driving People to Shop Online
According to the survey, the vast majority of respondents reported an impact on not only product availability (84%) but shortages (72%) and a growing number of consumers are shopping more frequently online, with a 62% increase (34% versus 21%). Similarly, the number of consumers shopping less frequently in-store showed a 63% increase (49% versus 30%).
Nearly All Respondents Feel Coronavirus Will Impact Global Economy
98% of respondents feel that the Coronavirus will impact the global economy, up slightly from 93% at the time of the previous survey. Responses were split near equally across gender and generation. Further, 71% of respondents said they were “worried about the Coronavirus”, up from 66% at the time of the previous survey. Worth noting, Baby Boomers are now the most worried generation at 81%, up from 72% last time, with 68% of Generation X, 72% of Millennials and 64% of Generation Z saying the same.
Notes on Survey Methodology and Analysis
First Insight’s findings are based on the results of two U.S. consumer studies of targeted samples of more than 500 respondents each, fielded on February 28, 2020 and March 17, 2020. The study was completed through proprietary sample sources among panels who participate in online surveys.
About First Insight, Inc.
First Insight is the world’s leading digital product testing and decision-making platform that empowers retailers and brands to incorporate the Voice of the Customer into the design, pricing, planning and marketing of new products. Through the use of online consumer engagement, the First Insight solution gathers real-time consumer data and applies predictive analytic models powered by machine learning and AI to create actionable insights, which drive measurable value. Retailers, manufacturers and brands use the First Insight solution to design, select, price, plan and market the most profitable new products for reduced markdown rates and improved sales, margins and inventory turnover. Customers include some of world’s leading vertically integrated brands, sporting goods companies, department stores, mass merchant retailers and wholesalers. For further information, please visit www.firstinsight.com.
