Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Consumer Expenditure Survey
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Budget shopping indicators
- Coupon use holding steady, redemptions are up despite fewer available coupons
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- Figure 1: Household use of cents-off coupons, January 2006-November 2011
- Spending patterns shift to accommodate rising costs and flat wages
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- Figure 2: Average annual expenditures, by consumer unit, 2010
- Budget shopping drivers
- Economic pressures squeeze the middle class
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- Figure 3: Share of households with annual income within 50% of the median, 1970-2010
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- Figure 4: Median household income in inflation-adjusted dollars, 2000-10
- Retail channels
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- Figure 5: Types of stores shopped in the last four weeks, January 2006-November 2011
- The consumer
- Share of respondents who are “budgeting more” increases
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- Figure 6: Trended year-over-year budgeting trends, July 2008-February 2012
- Nearly all budget shopping behaviors have increased
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- Figure 7: Strict budgeting and looking for savings, July 2010 vs. February 2012
- Conservative shopping strategies are the norm
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- Figure 8: Types of budget-conscious shopping behavior, February 2012
- More consumers making efforts to find deals on food and household items
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- Figure 9: Food and household items shopping budgeting behavior, July 2010 vs. February 2012
- Middle-aged women take a lesson from “extreme couponers” in their quest for deals
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- Figure 10: Extreme couponing, by gender and women’s age groups, February 2012
- Most purchase private label over national brands at least sometimes
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- Figure 11: Private label vs. national brand shopping behaviors, by those who purchase the item, February 2012
- Being a savvy shopper is a source of pride for many
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- Figure 12: Proud of deals and tells friends and family, by gender and household income, February 2012
- What we think
Issues in the Market
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- Is budget shopping here to stay?
- How can retailers stand out in a world where sales are expected?
- What types of promotions convince consumers to stray from their shopping lists?
Insights and Opportunities
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- Shrinking middle class means trading down, looking for basics
- Increasing household size, multigenerational living creates need for diverse products
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- Figure 13: Average household size in the U.S., 1930-2009
- Mobile couponing may soon reach the masses—opportunities for all
Inspire Insights
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- Trend: Make it Mine
- Trend: Let’s Make a Deal
Budget Shopping: Indicators
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- Key points
- Nearly three quarters of households use coupons
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- Figure 14: Household use of cents-off coupons, January 2006-November 2011
- Though coupon use is steady, savings are up while distribution has declined
- Consumers increasingly turn to private label brands to save money
- Spending patterns shift to accommodate rising costs and flat wages
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- Figure 15: Average annual expenditures, by consumer unit, 2006-10
- Personal savings falls, indicates effects of recession continue to be felt
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- Figure 16: Personal savings nationwide, by quarter, 1952-Q1 2012
- Spending vs. saving: consumers still more likely to say they are spending less
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- Figure 17: Spending more, less, or about the same compared to the past, April 2009-April 2012
- Figure 18: Share who are spending more/less and whether this is normal or temporary, April 2009-April 2012
Budget Shopping—Drivers
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- Key points
- The U.S. middle class has been steadily declining
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- Figure 19: Share of households with annual income within 50% of the median, 1970-2010
- Median household income has fallen for the last three years
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- Figure 20: Median household income in inflation-adjusted dollars, 2000-10
- Disposable personal income stagnated between 2009 and 2010
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- Figure 21: Changes in disposable personal income, January 2007-March 2012
- Poverty rate rose to 15.1% in 2010—the highest level in 17 years
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- Figure 22: Poverty rate in America, 1980-2010
- Rising costs put pressure on family budgets
- Single healthcare contributions increase 47% compared with 2006
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- Figure 23: Average annual worker contributions to healthcare coverage premiums, by single and family, 2001-11
- Energy prices continue to march, causing cutbacks in other areas
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- Figure 24: Fuel oil and gasoline average costs, All Items CPI, January 2007-April 2012
- Employment and labor participation rates remain low
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- Figure 25: Unemployment and underemployment, January 2007-April 2012
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- Figure 26: Labor force participation rate, January 2007-April 2012
Store Types Shopped
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- Key points
- Store types visited remains relatively steady over the past five years
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- Figure 27: Types of stores shopped in the last four weeks, January 2006-November 2011
Innovations and Innovators
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- Target a leader in mobile coupon innovation
- New technology makes electronic coupons scannable at checkout
Year-Over-Year Budgeting Trends
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- Key points
- “Budgeting more” increases compared with 2010, near recession level
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- Figure 28: Trended year-over-year budgeting trends, July 2008-February 2012
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- Figure 29: Year-over-year budgeting trends, by gender, age, and household income, February 2012
- Reasons for budgeting more are relatively consistent from 2008-12
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- Figure 30: Trended year-over-year reasons for budgeting more, by total, July 2008-February 2012
- Increasing costs—more so than reduced income—prompts budgeting
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- Figure 31: Reasons for budgeting more, February 2012
Strict Budgeting vs. Opportunistic Savings
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- Key points
- Nearly all budget shopping behaviors increase from 2010
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- Figure 32: Strict budgeting and looking for savings, July 2008-February 2012
- Strict household budgets most common among those budgeting more
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- Figure 33: Strict budgeting and looking for savings, by year-over-year budgeting trends, February 2012
- Women are more inclined toward opportunistic cost savings
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- Figure 34: Strict budgeting and looking for savings, by gender, February 2012
- Women put more effort into getting the best deals when shopping
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- Figure 35: Budget shopping behaviors, by gender, October 2010-November 2011
- Strict budgeting falls off with age, opportunistic cost savings increases
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- Figure 36: Strict budgeting and looking for savings, by age, February 2012
- Lower-income consumers more likely to be strict budgeters, less likely looking for savings
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- Figure 37: Strict budgeting and looking for savings, by household income, February 2012
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- Figure 38: Newspaper audience, by household income, 2011
Retail Channels Shopped and Shopping Behaviors
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- Key points
- More shoppers visiting a variety of retail channels
- Dollar stores on a growth trajectory
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- Figure 39: Retail channels shopped, July 2008-February 2012
- Conservative shopping strategies adopted during the recession appear to have become habit
- Sales and “percent-off” discounts are expected
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- Figure 40: Types of budget-conscious shopping behavior, February 2012
- Buying on sale, other savings strategies more common among women
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- Figure 41: Types of budget-conscious shopping behavior, by gender, February 2012
- Affluents more likely to exhibit budget shopping behaviors
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- Figure 42: Types of budget-conscious shopping behavior, by household income, February 2012
Shopping Behaviors by Channel Shopped
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- Key points
- Across nearly every channel, shopping for sale items is top strategy
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- Figure 43: Shopping behaviors, by retail channel shopped, February 2012
- Grocery shoppers engage in a variety of budget shopping behaviors
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- Figure 44: Types of budget-conscious shopping behavior, by grocery store/supermarket shoppers, July 2009-February 2012
- Walmart shoppers are drawn to everyday low prices
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- Figure 45: Types of budget-conscious shopping behavior, by Walmart shoppers, July 2009-February 2012
- Shoppers at mass merchandisers don’t always look for the cheapest
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- Figure 46: Types of budget-conscious shopping behavior, by mass merchandiser shoppers, July 2009-February 2012
- Club store shoppers bulk up
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- Figure 47: Types of budget-conscious shopping behavior, by club store shoppers, July 2009-February 2012
- Even at the high end, shoppers are looking for bargains
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- Figure 48: Types of budget-conscious shopping behavior, by higher-end department store shoppers, July 2009-February 2012
- Value-priced department store shoppers embrace budgeting behaviors
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- Figure 49: Types of budget-conscious shopping behavior, by value-priced department store shoppers, July 2009-February 2012
- Discount store shoppers are looking for the lowest prices
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- Figure 50: Types of budget-conscious shopping behavior, by discount store shoppers, July 2009-February 2012
Shopping for Food and Household Items
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- Key points
- More consumers making efforts to find deals on food and household items
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- Figure 51: Types of budget-conscious shopping behavior, when shopping for food and household items, July 2010-February 2012
- Women more committed to budget shopping for food and household items
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- Figure 52: Types of budget-conscious shopping behavior, when shopping for food and household items, by gender, February 2012
- “Extreme couponing” hits a chord among middle-aged women
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- Figure 53: Extreme couponing, thoughts about purchase limits, and asking for rain checks, by gender and gender by age groups, February 2012
- Budget shopping for food and household items spans all income levels
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- Figure 54: Types of budget-conscious shopping behavior, when shopping for food and household items, by household income, February 2012
Private Label vs. National Brand Purchases
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- Key points
- Most purchase private label over national brands at least sometimes
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- Figure 55: Private label vs. national brand shopping behaviors, by those who purchase the item, February 2012
- Men are more apt than women to always/usually purchase store brand
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- Figure 56: Private label vs. national brand shopping behaviors – Always/Usually buy, by gender, February 2012
- “Frugal fatigue” does not appear to have set in
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- Figure 57: Ways consumers save on household purchases, by key demographics, February 2012
Daily Deals and Facebook Friending for Discounts
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- Key points
- Women more likely to use “daily deal” sites and Facebook for discounts
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- Figure 58: Online daily deal site and Facebook discount use, by gender and gender by age groups, February 2012
- Affluents are most likely to have purchased a daily deal
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- Figure 59: Online daily deal site and Facebook discount use, by household income, February 2012
Budget Shopping Brings Satisfaction
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- Key points
- Being a savvy shopper is a source of pride for many
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- Figure 60: Proud of deals and tells friends and family, by key demographics, February 2012
Impact of Race and Hispanic Origin
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- Key points
- Year-over-year budgeting trends
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- Figure 61: Year-over-year budgeting trends, by race/Hispanic origin, February 2012
- Reasons for budgeting more
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- Figure 62: Reasons for budgeting more, by race/Hispanic origin, February 2012
- Strict budgeting vs. opportunistic savings
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- Figure 63: Strict budgeting and looking for savings, by race/Hispanic origin, February 2012
- Hispanics have larger households
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- Figure 64: Household size, by race/Hispanic origin of householder, 2010
- Median household income of Asians highest, Hispanics and blacks among the lowest
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- Figure 65: Median household income, by race and Hispanic origin of householder, 2010
- Budget shopping behaviors
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- Figure 66: Budget shopping behaviors, by race/Hispanic origin, October 2010-November 2011
- Retail channels shopped and shopping behaviors
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- Figure 67: Retail channels shopped, by race/Hispanic origin, February 2012
- Asians are motivated to get the best prices—not the cheapest products
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- Figure 68: Types of budget-conscious shopping behavior, by race/Hispanic origin, February 2012
- Shopping for food and household items
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- Figure 69: Food and household items shopping budgeting behavior, by race/Hispanic origin, February 2012
- Private label vs. national brand purchases
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- Figure 70: Private label vs. national brand shopping behaviors – always/usually buy, by race/Hispanic origin, February 2012
- Daily deals and Facebook friends for discounts
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- Figure 71: Online daily deal site and Facebook discount use, by race/Hispanic origin, February 2012
Custom Consumer Groups—Parents
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- Key points
- Year-over-year budgeting trends
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- Figure 72: Year-over-year budgeting trends, by gender and presence of children in household, February 2012
- Reasons for budgeting more
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- Figure 73: Reasons for budgeting more, by gender and presence of children in household, February 2012
- Strict budgeting vs. opportunistic savings
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- Figure 74: Strict budgeting and looking for savings, by gender and presence of children in household, February 2012
- Shopping behavior
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- Figure 75: Types of budget-conscious shopping behavior, by gender and presence of children in household, February 2012
- Shopping for food and household items
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- Figure 76: Food and household items shopping budgeting, by gender and presence of children in household, February 2012
- Private label vs. national brand purchases
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- Figure 77: Private label vs. national brand shopping behaviors – always/usually buy, by gender and presence of children in household, February 2012
Appendix—Other Useful Consumer Tables
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- Year-over-year budgeting trends
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- Figure 78: Year-over-year budgeting trends, by generation, February 2012
- Reasons for budgeting more
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- Figure 79: Reasons for budgeting more, by age and by race/Hispanic origin, February 2012
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- Figure 80: Reasons for budgeting more, by household income, February 2012
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- Figure 81: Reasons for budgeting more, by age, February 2012
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- Figure 82: Reasons for budgeting more, by urban area, February 2012
- Strict budgeting vs. opportunistic savings
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- Figure 83: Strict budgeting and looking for savings, by reasons for budgeting more, February 2012
- Retail channels shopped
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- Figure 84: Retail channels shopped, by gender, February 2012
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- Figure 85: Retail channels shopped, by household income, February 2012
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- Figure 86: Retail channels shopped, by generation, February 2012
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- Figure 87: Retail channels shopped, by year-over-year budgeting trends, February 2012
- Shopping behaviors
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- Figure 88: Types of budget-conscious shopping behavior, by age, February 2012
- Retail channels’ shopping behaviors
- Grocery store/supermarkets
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- Figure 89: Grocery store/supermarket shopping behaviors, by gender, February 2012
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- Figure 90: Grocery store/supermarket shopping behaviors, by gender and presence of children in household, February 2012
- Walmart
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- Figure 91: Types of budget-conscious shopping behavior, by Walmart shoppers, by gender, February 2012
- Mass merchandisers
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- Figure 92: Types of budget-conscious shopping behavior, by mass merchandiser shoppers, by gender, February 2012
- Club stores
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- Figure 93: Types of budget-conscious shopping behavior, by club store shoppers, by age, February 2012
- Value-priced department stores
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- Figure 94: Types of budget-conscious shopping behavior, by value-priced department store shoppers, by household income, February 2012
- Internet-only stores
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- Figure 95: Types of budget-conscious shopping behavior, by internet-only store shoppers, by age, February 2012
- Shopping for food and household items
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- Figure 96: Food and household items shopping budgeting behavior, by year-over-year budgeting trends, February 2012
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- Figure 97: Food and household items shopping budgeting behavior, by age, February 2012
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- Figure 98: Extreme couponing, thoughts about purchase limits, and asking for rain checks, by age and household income, February 2012
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- Figure 99: Extreme couponing, thoughts about purchase limits, and asking for rain checks, by race/Hispanic origin February 2012
- Private label vs. national brand purchases
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- Figure 100: Private label vs. national brand shopping behaviors, February 2012
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- Figure 101: Private label vs. national brand shopping behaviors – always/usually buy, by age, February 2012
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- Figure 102: Private label vs. national brand shopping behaviors – always/usually buy, by household income, February 2012
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- Figure 103: Private label vs. national brand shopping behaviors – always/usually buy, by urban area, February 2012
Appendix—Trade Associations
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