UK Consumers Rebel Against Mass Marketing
Britain’s consumers are rebelling against mass marketing and taking a more individual and personal approach to the choices they make, according to market research company Mintel’s 2005 British Lifestyles Report.
The survey involved 1,528 adults across Britain and questioned them on opinions about finance, technology, food, going out, travel and health.
Finance
Mintel found that 52% of adults thought automated banking systems and call centres were infuriating, even though this is how most banks now conduct their customer service. Two in five adults, 41%, were shown to choose their local bank based on location, compared to 24% who were more concerned with reputation, while just 6% were swayed by special offers and sign up incentives.
Paul Rickard, director of research at Mintel said: “This reinforces the point that many people would still rather actually go into a branch as opposed to carrying out their transactions remotely, either over the internet or on the telephone.”
The report also revealed that one in five adults, 22%, would be comfortable to do all their banking via the internet, with just 12% actually wanting to learn how to manage more of their finances using their computer. Only 13% would be happy to do all their banking over the telephone.”
Rickard added: “The move towards remote banking has lead to many branch closures and has clearly been provider-led rather than consumer driven. The high costs associated with running extensive branch networks will undoubtedly mean that the banking industry will continue to look at ways of encouraging customers to use lower-cost channels, such as the telephone or the internet.”
Technology
Just one in ten adults, 10%, feel that they ‘have to keep up with the latest technology’, with 44% thinking that technology makes their lives easier, compared to one third who think there’s too much emphasis and reliance on technology. One in five adults feel disenfranchised by the technology boom, seemingly left behind by advances in technology.
“Consumers are clearly becoming more cautious in their attitudes towards adopting new products. It seems that many people are rebelling against the pressure to displace perfectly functional and efficient ways of doing things with seemingly complex advancements. They are rejecting a form of change for change’s sake”, explained Rickard.
Mintel earmarked the DVD and mobile phone markets as being two of the most interesting. DVD players have shown the most impressive growth over the past five years, increasing eight fold to £790 million in 2004.
Mobile phones are another dynamic category, with Mintel revealing that around 80% of the population own a mobile phone and that 26% say that they could not live without one. According to research from the Mobile Data Association, mobile phone penetration in the UK has exceeded 100%, with the number of handsets currently in circulation greater than the UK’s population.
Food
In 2005, almost two-thirds of adults claim to ‘only shop at supermarkets that serve good quality ‘fresh food’, compared to only around half, 53%, in 1993. Only 53% do all their shopping in a supermarket, with 21% of adults preferring to shop at local stores and 36% supporting local traders.
“There is clearly a belief that local traders should be supported, rather than allowing the supermarket giants to dominate,” Rickard explained. “Some may resent the fact that because of the supermarkets, local traders are disappearing and our high streets are losing their individual character”.
Going out
Mintel found that 48% of consumers prefer to go to a traditional pub as opposed to a chain bar, with 36% of 20-24 year olds feeling this way.
Rickard said: “The harsh reality for independent pub owners is that they often cannot complete with the prices in the chain pubs and their exposure through advertising. This will contribute to a decline in the market over the coming years.”
Travel
The Lifestyle Report revealed a growing individualism in consumer travel choices, with 18% of respondents liking to take holidays ‘off the beaten track’ and a similar proportion, 17%, feeling that ‘tourism is in danger of destroying local traditions’. One in four adults, 23%, ‘try and learn about the local culture before going abroad.’
Rickard said: “For an increasing amount of travellers, being in control of creating their own itineraries and doing their own booking creates a compelling advantage over the services of the travel agent. Indeed, today, some 34% of adults like to travel independently. The big facilitator here has been the internet, providing a massive shop window of travel options, destinations and modes of travel.”
A recent report from Nielsen//NetRatings confirms the role of the internet in travel, revealing that travel websites attracted 2.2 million more European women in February 2005 compared to the same period last year, enjoying a 23% year on year increase.
Health
British consumers are now showing a real interest in health and wellbeing, with 11% preferring to use alternative medicine and 32% prepared to look into these treatments. The overwhelming majority, 84%, of adults ‘only visit the doctor when they are ill’.
“Growing consumer awareness and interest in alternative medicines has fuelled the market and has encouraged an influx of new products to feed demand. Manufacturers and retailers have also responded to the escalating market by including herbal treatments alongside the market,” comments Rickard.
Mintel: www.mintel.com
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