CD Blogs – burningpants

Archives

CoreData’s Digital Intimacy Report finds people are more likely to take action when allowed to experience the brand on their terms and not have messages pushed onto them. A quarter’s response to online marketing depends on how much they trust the brand in question.

Stocks and shares Isa ownership among women is low. If levels of stocks and shares (S&S) Isas are brought in line with those of males, the industry could see an estimated pot of £8.83bn flowing into these products.

24.5% of people were primarily motivated to start thinking about estate planning by starting a family, 23.1% claimed they had simply reached a certain age, and 14.3% were encouraged to think about estate planning by financial advisers.

28.8% of women and 14.3% of men claim their most trusted adviser on estate planning issues is a family friend.

25.0% of 45-54 year olds and 33.3% of 65-74 year olds say they openly discuss wealth in their families, as well as 61.5% of the 35-44 age group.

Investors believe UK and European shares will dominate the first half of 2014, with sentiment shifting heavily in their favour at the expense of both emerging and frontier markets.


Solutions

Services

Our Bespoke research capabilities include research to promote client market presence, client branded white papers, competitor benchmarking and satisfaction, strategy quantifying business opportunities, products testing and development as well as market dynamics and shifting trends analysis.

Methodologies

We design results-focused strategies.

Core Functions

We deliver high quality insights.

Savings Inhibition

October 2011

[ View the full report ]

The study explores eight core identified drivers as to why people do not save enough and involves a deep level analysis to understand how these drivers impact the different segments of UK consumers. Many factors combine to influence consumer perception and action to saving, making it a challenge for Governments and financial services companies to efficiently and effectively encourage and induce behaviour. A range of drivers combine in countless ways to collectively drive behaviour and opinion. Essentially, the rationale behind one person’s decisions is unlikely to consist of the same combination of drivers that lead the next person to reach their own conclusions.

A qualifying round of analysis was conducted to identify the primary reasons that inhibit people when it comes to savings. As a result of this, eight key determinants were identified called collectively as the UNFUNDED Index©:

  • Understanding – This category covers the influence of matters such as consumer understanding of financial products and the financial services market.
  • Need This category covers the influence of matters such as consumer sense of whether people know how much they need to be saving and the future implications of not saving now, how much is needed in the future, life expectancy etc.
  • Fear – This category covers the influence of matters such as the degree to which fear impacts on savings behaviour – whether that be fear of poor returns, uncertainty in the market or of high levels of volatility etc.
  • Unable (Inability) – This category covers the influence of matters such as the degree to which individuals simply don’t have enough spare funds to allocate to saving.
  • Numbness – This category considers the notion of apathy and the level to which individuals bury their heads in the sand. Plus an assessment of whether making no decision is often easier than making a decision.
  • Distrust – This category covers the influence of matters such as consumer perceptions of the financial services industry, specifically the notion of trust – or the lack thereof – on savings behaviour.
  • Expectation of price – This category covers the influence of matters such as the effect that pricing, fees and charges have on consumer attitudes to save.
  • Decisions – This category covers the role of intertemporal choice on behaviour (the notion of consumers being inclined to spend and enjoy today rather than wait until some point in the future) and its effect on consumer utility.

The study deconstructs each of these eight key determinants and how they influence and impact consumer attitudes and affect long term savings levels.  A survey of respondents from United States, United Kingdom, Australia and China were asked questions regarding how they save and how they plan for the future. The findings are then further explored through gender, age and wealth differences among each of the countries involved in the study.

Back