Table of Contents
Executive Summary
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- Overview
- The market
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- Figure 1: Financial outlook: present vs. last 12 months, April 2008-June 2014
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- Figure 2: Financial outlook on American economy in coming 12 months, April 2008-June 2014
- Market drivers
- US population is growing, particularly among Hispanics
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- Figure 3: Population by Hispanic origin, 2009-19
- Poverty rate down for first time since 2006
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- Figure 4: Number of people in the US living in poverty, and annual percent change, 2003-13
- Higher consumer confidence may lead to increased discretionary spending
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- Figure 5: Consumer confidence and unemployment, 2000-14
- Consumer expenditures are up about 2% since recession
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- Figure 6: Average annual expenditures and characteristics of all consumer units, 2006-12
- The consumer
- No one size fits all type of budget shoppers
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- Figure 7: Budget shopper spectrum based on economic outlook segmentation, April 2013-June 2014
- Nearly all consumers budgeting same or more than last year
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- Figure 8: Budgeting habits, September 2014
- Increased budgeting namely attributed to higher overall expenses
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- Figure 9: Reasons for budgeting more, September 2014
- Heaviest budget shoppers are extreme in their budget-oriented actions
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- Figure 10: Budget-minded actions taken, by repertoire of types of budget shopper, September 2014
- Those in large households are significantly heavier shoppers
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- Figure 11: Stores shopped for household or personal items, by household size, September 2014
- National brands still preferred over store brands
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- Figure 12: Items purchased as store brand vs. national brand, September 2014
- What we think
Issues and Insights
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- What is the latest consumer sentiment regarding personal finances and the economy at large?
- The issues
- The implications
- Who are budget shoppers?
- The issues
- The implications
- Where do budget shoppers get their information?
- The issues
- The implications
Trend Application
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- Trend: Prepare for the Worst
- Trend: Let’s Make a Deal
- Trend: The Nouveau Poor
Market Drivers
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- Key points
- Total US households at an all-time high, yet size of households decline
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- Figure 13: US Households, 2002-12
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- Figure 14: Average household size, by race of householder, 2002-12
- US population is growing and greying
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- Figure 15: Population by age, 2009-19
- Hispanics will comprise nearly 19% of total US population by 2019
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- Figure 16: Population by Hispanic origin, 2009-19
- Gross domestic product peaks for first time in several years; Disposable personal income also up
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- Figure 17: Real Gross Domestic Product and Related Measures: Percent Change from Preceding Period
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- Figure 18: Real Disposable Personal Income: Percent Change from Preceding Periods
- Hispanics and Blacks have lowest household income
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- Figure 19: Household Income Distribution, By Race/ethnicity, 2012
- Higher consumer confidence may lead to increased discretionary spending
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- Figure 20: Consumer confidence and unemployment, 2000-14
- Poverty rate down for first time since 2006
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- Figure 21: Number of people in the US living in poverty, and annual percent change, 2003-13
- Consumer expenditures are up about 2% since recession
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- Figure 22: Average annual expenditures and characteristics of all consumer units, 2006-12
- Figure 23: Average annual expenditures and characteristics of all consumer units, Percent change vs. prior periods, 2006-2012
Target Segmentation
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- Who are budget shoppers?
- Consumer segmentation
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- Figure 24: Budget shopper spectrum based on economic outlook segmentation, April 2013-June 2014
- Figure 25: Economic outlook segmentation, Percentage by segment, April 2013-June 2014
- Facing Challenges (FC)
- Financial Nesters (FN)
- Economically Indifferent (EI)
- Fiscally Fit (FF)
- Confident Spenders (CS)
- Attitudes and opinions
- Shopping
- Food
- Apparel
- General
- How to reach them
- Online
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- Figure 26: Budgeting habits: budgeting money more vs. last year, by visits websites daily, September 2014
- Social media
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- Figure 27: Budgeting habits: budgeting money more vs. last year, by visits social media websites daily, September 2014
- Broad-based media
- Out-of-Home
- In-store
- What do consumers want?
Financial Outlook
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- Key points
- More people than ever think their financial stance has improved recently
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- Figure 28: Financial outlook: present vs. last 12 months, April 2008-June 2014
- Three out of four think the economy will remain stagnant or reverse
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- Figure 29: Financial outlook on American economy in coming 12 months, April 2008-June 2014
- People are more positive about personal finances vs. economy at large
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- Figure 30: Financial outlook: present vs. future 12 months vs. financial outlook on American economy in coming 12 months, April 2013-June 2014
- Younger people are more upbeat
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- Figure 31: Financial outlook, Percent who think things are/will be better off, by age, April 2013-June 2014
- A positive financial outlook doesn’t necessarily equate to loosening of budgeting tendencies
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- Figure 32: Financial outlook on American economy in coming 12 months vs. Attitudes and opinions about Shopping, Based on index vs. all respondents, April 2013-June 2014
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- Figure 33: Likelihood to purchase big-ticket or medium-ticket item in next 30 days, April 2013-June 2014
Budgeting Tendency vs. Prior Year
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- Key points
- Nearly nine out of 10 consumers budgeting same or more than last year
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- Figure 21: Budgeting habits, September 2014
- Adults 18-34 are saving the most…and the least
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- Figure 34: Budgeting habits, by age, September 2014
- Those with income less than $100K plan to save more this year
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- Figure 35: Budgeting habits, by household income, September 2014
- Larger households necessitate tighter budgets
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- Figure 36: Budgeting habits – budgeting more, by household size and presence of children in household, September 2014
- Reasons for budgeting more money vs. last year
- Higher expenses are main reason for budgeting more money
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- Figure 37: Reasons for budgeting more, September 2014
- Significant life events impact budgeting behavior
Budgeting Shopping Actions
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- Key points
- More than half of consumers use coupons, although overall usage is slightly dipping
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- Figure 38: Budget-minded actions taken, September 2014
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- Figure 39: Coupon usage, August 2008-September 2014
- Verbatims about coupon usage
- Millennials and Generation X more likely to maintain strict budgeting parameters
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- Figure 40: Budget-minded actions taken, by age, September 2014
- The affluent still actively shop for deals
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- Figure 41: Budget-minded actions taken, by household income, September 2014
- Presence of children leads to more budget-minded actions
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- Figure 42: Budget-minded actions taken, by presence of children in household, September 2014
- Females, Millennials, and Boomers maintain lowest budgets
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- Figure 43: Budget-minded actions taken, by various demographics (mean), September 2014
- Heaviest budget shoppers are extreme in their budget-oriented actions
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- Figure 44: Budget-minded actions taken, by repertoire of types of budget shopper, September 2014
- Heaviest budget shoppers overindex on saving due to issues related to mortgages, childcare, and big-ticket items
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- Figure 45: Reasons for budgeting more, by repertoire of types of budget shopper, September 2014
Type of Stores Shopped
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- Key points
- Walmart and grocery stores most shopped for household or personal items
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- Figure 46: Stores shopped for household or personal items, September 2014
- Boomers shop more often at value-oriented retailers
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- Figure 47: Stores shopped for household or personal items, by gender and age, September 2014
- People in large households are significantly heavier shoppers
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- Figure 48: Stores shopped for household or personal items, by household size, September 2014
- Heavy budget shoppers significantly more likely to frequent many stores
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- Figure 49: Stores shopped for household or personal items, by repertoire of types of budget shopper, September 2014
Shopping Behaviors
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- Key points
- Half of people look at the sale items first before entertaining non-sale items
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- Figure 50: Attitudes towards shopping, September 2014
- Attitudes toward shopping
- Agreement increases as level of budget shopping rises
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- Figure 51: Attitudes towards shopping, by repertoire of types of budget shopper, September 2014
- Qualitative insight
Brand Preferences
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- Key points
- Most consumers prefer national brands over store brands
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- Figure 52: Items purchased as store brand vs. national brand, September 2014
- Young men most likely to prefer store brands
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- Figure 53: Items purchased as store brand vs. national brand – Strong store brand preference, by gender and age, September 2014
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- Figure 54: Items purchased as store brand vs. national brand – Strong store brand preference, by household income, September 2014
- Avid store brand shoppers frequent mass merchandisers and warehouse clubs
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- Figure 55: Stores shopped for household or personal items, by repertoire of types of only store brands, September 2014
Race and Hispanic Origin
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- Key points
- Blacks are the most positive about current and future financial situation
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- Figure 56: Financial outlook: present vs. last 12 months, by race/Hispanic origin, April 2013-June 2014
- Figure 57: Financial outlook: present vs. future 12 months, by race/Hispanic origin, April 2013-June 2014
- Blacks and Asians feel most optimistic about US economy
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- Figure 58: Financial outlook on American economy in coming 12 months, by race/Hispanic origin, April 2013-June 2014
- Blacks and Hispanics budgeting more than last year
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- Figure 59: Budgeting habits, by race/Hispanic origin, September 2014
- Higher expenses are the main reason for stricter budgets
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- Figure 60: Reasons for budgeting more, by race/Hispanic origin, September 2014
- Whites use coupons the most
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- Figure 61: Budget-minded actions taken, by race/Hispanic origin, September 2014
- Hispanics and Blacks most likely to shop for household and/or personal items at Walmart
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- Figure 62: Stores shopped for household or personal items, by race/Hispanic origin, September 2014
- Asians are engaged in the deal-finding process
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- Figure 63: Attitudes towards shopping, by race/Hispanic origin, September 2014
- Hispanics and Blacks strongly prefer store brands
- Asians represent opportunity target for private label brands
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- Figure 65: Items purchased as store brand vs. national brand – Light store brand preferences, by race/Hispanic origin, September 2014
Appendix – Other Useful Consumer Tables
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- Figure 66: Household income distribution by race and Hispanic origin of householder, 2012
- Consumer spending data
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- Figure 67: Average annual expenditures and characteristics of all consumer units, 2006-12
- Figure 68: Average annual expenditures and characteristics of all consumer units, Percent by category, 2006-12
- Financial outlook: Present vs. past 12 months
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- Figure 69: Financial outlook: present vs. last 12 months, by household income, April 2013-June 2014
- Financial outlook: Present vs. future 12 months
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- Figure 70: Financial outlook: present vs. future 12 months, by household income, April 2013-June 2014
- Budgeting habits
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- Figure 71: Budgeting habits, by employment, September 2014
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- Figure 72: Budgeting habits, by area, September 2014
- Reasons for budgeting money more vs. last year
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- Figure 73: Reasons for budgeting more, by gender, September 2014
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- Figure 74: Reasons for budgeting more, by presence of children in household, September 2014
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- Figure 75: Reasons for budgeting more, by repertoire of types of budget shopper, September 2014
- Budget shopping actions
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- Figure 76: Budget-minded actions taken, by household size, September 2014
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- Figure 77: Budget-minded actions taken, by visits websites daily, part 1, September 2014
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- Figure 78: Budget-minded actions taken, by visits websites daily, part 2, September 2014
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- Figure 79: Budget-minded actions taken, by visits social media websites daily, part 1, September 2014
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- Figure 80: Budget-minded actions taken, by visits social media websites daily, part 2, September 2014
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- Figure 81: Budget-minded actions taken, by budgeting habits, September 2014
- Type of stores shopped
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- Figure 82: Stores shopped for household or personal items, by household income, September 2014
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- Figure 83: Stores shopped for household or personal items, by presence of children in household, September 2014
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- Figure 84: Stores shopped for household or personal items, by repertoire of types of budget shopper, September 2014
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- Figure 85: Stores shopped for household or personal items, by budgeting habits, September 2014
- Shopping attitudes
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- Figure 86: Attitudes towards shopping, by gender and age, September 2014
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- Figure 87: Attitudes towards shopping, by household income, September 2014
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- Figure 88: Attitudes towards shopping, by household size, September 2014
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- Figure 89: Attitudes towards shopping, by presence of children in household, September 2014
- Brand preferences – strong store preference (always or usually buy store brands)
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- Figure 90: Items purchased as store brand vs. national brand – Strong store brand preference, by household size, September 2014
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- Figure 91: Items purchased as store brand vs. national brand – Strong store brand preference, by presence of children in household, September 2014
- Brand preferences – never buy store brand
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- Figure 92: Items purchased as store brand vs. national brand – Never, by gender and age, September 2014
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- Figure 93: Items purchased as store brand vs. national brand – Never, by household income, September 2014
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- Figure 94: Items purchased as store brand vs. national brand – Never, by race/Hispanic origin, September 2014
- Brand preferences – Always buy store brand
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- Figure 95: Items purchased as store brand vs. national brand – Always, by gender and age, September 2014
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- Figure 96: Items purchased as store brand vs. national brand – Always, by household income, September 2014
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- Figure 97: Items purchased as store brand vs. national brand – Always, by race/Hispanic origin, September 2014
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- Figure 98: Items purchased as store brand vs. national brand – Always, by repertoire of types of budget shopper, September 2014
- Brand preferences – Light store brand preference (sometimes or rarely buy store brands)
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- Figure 99: Items purchased as store brand vs. national brand – Light store brand preferences, by gender, September 2014
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- Figure 100: Items purchased as store brand vs. national brand – Light store brand preferences, by age, September 2014
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- Figure 101: Items purchased as store brand vs. national brand – Light store brand preferences, by household size, September 2014
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- Figure 102: Items purchased as store brand vs. national brand – Light store brand preferences, by presence of children in household, September 2014
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- Figure 103: Items purchased as store brand vs. national brand – Light store brand preferences, by repertoire of types of budget shopper, September 2014
- Budget shopper repertoire analysis demographics
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- Figure 104: Repertoire of types of Budget Shopper, by demographics
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Appendix – Economic Outlook Segmentation
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- Demographics
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- Figure 105: Economic outlook segmentation, by gender, April 2013-June 2014
- Figure 106: Economic outlook segmentation, by age, April 2013-June 2014
- Figure 107: Economic outlook segmentation, by race/Hispanic origin, April 2013-June 2014
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- Figure 108: Economic outlook segmentation, by gender, April 2013-June 2014
- Financial outlook
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- Figure 109: Financial outlook: present vs. last 12 months, by economic outlook segmentation, April 2013-June 2014
- Figure 110: Financial outlook: present vs. future 12 months, by economic outlook segmentation, April 2013-June 2014
- Figure 111: Financial outlook on American economy in coming 12 months, by economic outlook segmentation, April 2013-June 2014
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- Figure 112: Likelihood to purchase big-ticket item in next 30 days, by economic outlook segmentation, April 2013-June 2014
- Figure 113: Likelihood to purchase medium-ticket item in next 30 days, by economic outlook segmentation, April 2013-June 2014
- Life events experienced and/or expected
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- Figure 114: Life events experienced and/or expected in last 12 months or next 12 months, by economic outlook segmentation, April 2013-June 2014
- Attitudes and opinions about shopping/food/apparel
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- Figure 115: Attitudes and opinions about shopping, by economic outlook segmentation, April 2013-June 2014
- Figure 116: Attitudes and opinions about food, by economic outlook segmentation, April 2013-June 2014
- Figure 117: Attitudes and opinions about apparel, by economic outlook segmentation, April 2013-June 2014
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- Figure 118: General attitudes, opinions, and interests, by economic outlook segmentation, April 2013-June 2014
- Media consumption
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- Figure 119: General attitudes, opinions, and interests, by economic outlook segmentation, April 2013-June 2014
- Figure 120: Advertising outside the home noticed in last 30 days, by economic outlook segmentation, April 2013-June 2014
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- Figure 122: Social media website visitation, by economic outlook segmentation, April 2013-June 2014
- Figure 123: Attitudes and opinions about social media, by economic outlook segmentation, April 2013-June 2014
Appendix – Trade Associations
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- Food Marketing Institute (FMI)
- Grocery Manufacturers Association (GMA)
- National Association of Chain Drug Stores (NACDS)
- National Retail Federation (NRF)
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