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Times & Trends:  Zero-Moment of Truth: Redefining the Consumer Decision-Making Process

October 2009

No doubt, consumer packaged goods is a whole new ballgame today.  It’s a game centered on the consumer.  It begins and ends with the consumer mindset.  CPG marketers with an intimate understanding of how the consumer is wired and a deft ability to market to the new consumer will win the game in the long run.

This issue of Times & Trends provides insight into the mind of the new CPG shopper.

 
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 Times and Trends
The intensity of this year’s Hurricane season illustrates the dire need for effective disaster planning by consumers and government, as well as retailers and manufacturers.

This second report focuses on purchase behavior during the week following the hurricane (August 29 – September 4) within key Gulf Coast markets (New Orleans, La./Mobile, Ala.; Birmingham/Montgomery, Ala; and Mississippi) as well as surrounding regions, in which thousands of Gulf Coast refugees are now residing.

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The demand for convenience has been a long-standing driver of consumer purchase behavior. However, the face of convenience is changing, as underlying demographics shift, new products raise consumer expectations, and health concerns wield more influence.

This assessment provides an in-depth look at purchase trends among convenient meal solutions, snacks, beverages, personal care and household categories to highlight current and likely future growth opportunities among products with convenience benefits.

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In the wake of Hurricane Katrina, which hit the U.S. Gulf Coast on Monday, August 29 and left sheer devastation in its path, consumer packaged goods (CPG) manufacturers and retailers are seeking opportunities to not only offer aid to victims of this tragedy, but also plan for future catastrophic events to ensure quick access to and adequate supplies of essential products.

This first report focuses on purchase behavior across three affected areas in the week preceding the hurricane’s arrival: New Orleans, La./Mobile, Ala.; Birmingham/Montgomery, Ala; and Mississippi.

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This report provides an assessment of CPG spending patterns during three time periods throughout the past year in which average gas prices reached significant new levels (less than $2.00; $2.00 - $2.25; >$2.25 per gallon.) It is intended to provide manufacturers and retailers with industry benchmarks by which to evaluate their category, brand and store performance, and insights into likely future consumer behavior.
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As mass media’s ability to effectively reach consumers continues to erode, and consumers’ drive for value increasingly guides shopping behavior, merchandising has become one of the most powerful tools available to manufacturers and retailers to influence consumer behavior.

This unique report provides an in-depth assessment of merchandising activity and effectiveness across categories to enable CPG marketers to benchmark their merchandising practices and performance and highlight potential improvement opportunities.

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