Prof Simpson said financial flexibility and confidence are two key barometers that could help understand how different groups from different social classes are coping with the crisis in different ways.
Prof Simpson was speaking at the 2009 Annual Conference hosted by Future Publishing at the Wanderers Club in Illovo.
“First of all, there are what our study called the prime-timers, who are over-40 and in the 8-10 LSM,” he said.
“These people are armed with a high degree of confidence and are financially strong, with low levels of debt and are recession-resistant because they know how to handle it due to past experiences.
“For this kind of people, brands need to know that experience is more important than ‘things' and that exceptional service and customer treatment are not only expected but demanded.”
Then there is a group called the strugglers, 5-10 LSM consumers, whose life is a constant struggle for survival, as they spend most of their ‘small' income on food, electricity, transport, rent, kids and other basic needs.
“These people are highly confident but lack financial resources and are constantly hunting for bargains,” Prof Simpson noted.
“This group of people used to be brand loyalists but that has since changed due to the recession, which now represents an ultimate test of loyalty.”
With limited resources their possibilities are also limited, and what they want now is the right product with the right price at the right time of the month, as necessity becomes the name of the game and luxuries are out of their lives, he explained.
Prof Simpson also spoke about the youth, who he believes are full of confidence but lack money.
“For the youth, brand relevance is still important despite the crisis, as it is all about me, me, and me.”
For young families, however, highly confident they can be, it must be said that they have been hardly hit by the recession and most of them dependent heavily on debt, he pointed out.
“Family visits get scarce and funeral attendances are declining, opting to send money as a way of solving extended family problems rather than personal visits.”
But he said the lesson to learn here is that there is always an upside to a downside and always remember that one size does not fit all.
“When will the recession end? Nobody knows - even though some say the situation will normalise before the end of the year. “Even if after it has ended, the effects will still be felt long and memories will linger.
“However, one thing for sure is that many consumers blame the crisis on corporate greed.
“As a result, consumers are putting an emotional price on brand integrity and deserving brands are likely to enjoy long-term brand loyalty.
“And the brands battles of the future will likely be fought around issues of sustainability, environment, and ethics, among others.”
The conference was facilitated by eNews Channel anchor and The Annual editor Jeremy Maggs.
Go to www.futurepublishing.co.za for more information.
