How Is Consumer Confidence Influenced?
The Conference Board who determines the Consumer Confidence Index is largely comprised of big business CEOs from well-known companies that sell cereals, soups, automobiles and insurance, and even utility company heads. So in a way, while the board attempts to remain impartial, couldn’t consumer data analysis further help their own endeavors?
For years, targeted consumers for television, radio, and print advertisements have been between the ages of 18-49. Some people over or under this age range may feel their buying trends don’t affect consumer confidence, but those consumers who don’t fall within that age range have other opportunities to influence consumer confidence.
Take the holiday season or Mother or Father’s Day for example. Certainly many advertisements are geared toward gift and toy ideas between Thanksgiving and Christmas and old staples like sweaters, sock, blankets, ties, and appliances ads are fierce during gender-related holidays.
The people or characters that pitch advertisements to us also influence us as consumers. We may like or trust one spokesperson over another. Often a well-known and considered to be well educated spokesperson will be utilized to gain our trust in seeking insurance or mortgage services; we believe them because of who they are.
Other times, unknowns can pitch products to us if the advertisement is catchy, funny, or creative. We might like a utility or cable company because it gives back to the community and tells us so by advertising.
There are many ways consumer confidence is influenced, some ways are tried and true like business logos we remember where other ads attempt to gain our trust for something new by promising something better than what we are used to.
When wondering, what effects consumer confidence, it’s the environment we live in, the places we work, the money we make, the products we believe in and the pitches we are handed daily if not hourly.
The next time you’re shopping, whether it’s online or off consider what made you pick a certain product or service? Were you influenced? Most likely so.