Behaviour in tough times

I love that as researchers we can sit back and see how people are reacting to the current economic climate. Here are some clues from a recent SMH article.






TRADING UP ON DOMESTIC PRODUCTS
"They are trading up from less expensive products and what they perceive to be poorer performing brands. We are seeing similar patterns in most developed markets - people are sticking to the brands they know and trust, even if they are a little dearer. They don't want to wash things twice. They don't want waste." Vice-president, marketing, David McNeil

COCOONING
Foxtel says the economic climate has created a trend for more people cocooning at home, which is generating subscription growth for the pay TV provider. For the December 2008 half, Foxtel's subscriptions were up 7 per cent. Pay-TV take-up is increasing this year, Foxtel says.

DOMESTIC TRAVEL
General manager of Stayz, Kirsty Shaw, who has about 20,000 holiday rental listings, says. "Online traffic is up 55 per cent for February, year-on-year. Nights inquired for over the Easter period is up 46 per cent. There's been a general increase in people holidaying domestically rather than travelling overseas."

VALUE PROPOSITIONS WORKING
"While competitors are taking a slash-and-burn mentality with their communications, we have been focused and consistent on how Hyundai delivers quality and value."