Ease On Through Election Uncertainty

The stock market dislikes uncertainty it can’t control. The same with retail shoppers. The “Deloitte 2012 Annual Holiday Survey” of 5,089 consumers, conducted in mid-September, found that about 29% of men and about 20% of women said they’d hold off or delay holiday shopping until they see who wins the election. Higher income consumers were somewhat more likely to wait than lower-income consumers. This might be because lower-income consumers interested in layaway plans need to make selections early.
     Note that the majority of consumers in the sample did not say they’re waiting. In fact, half of the number of respondents said the election will not change their spending plans. On last year’s survey, 50% of the sample said we’re still in a recession. That’s down to 37% this year.
     Fortunately for retailers wondering how to market to shoppers still feeling the uncertainty, research findings lend certitude.

• In product retailing, expect movement to the extremes. In your merchandising, feature both premium and bargain choices for product lines. If you need to save on inventory expenses, deemphasize the midrange choices. For any midrange lines you do carry, project a strong lifestyle personality of staying the course and showing perseverance in the face of uncertainty.
• In services retailing, keep to time commitments. When you set an appointment, be ready to greet the client promptly if they arrive on time. It’s best to start delivery of the service on schedule, but if you can’t, at least welcome the person with a promise of how long they’ll need to wait.
• Maintain a clear impression of competence. Researchers at University of California-Los Angeles found that consumers describe competent retailers as reliable, intelligent, and successful. Impressions of being daring, spirited, and exciting can detract from the image of competence.
• Countenance superstitious thinking. Superstitions are most likely to influence consumers at times of uncertainty. Researchers at University of Texas-Pan American, Ohio University, and China’s Chongqing Technology and Business University differentiate between consumers who do things like carry good luck charms and those who believe in the power of fate or karma regardless of what lucky charms they're packing. For those who respect karma, show extra perseverance in resolving service complaints. Research at St. Louis University and Oklahoma University suggests the other type of superstitious consumer will become a fan if you pair positive shopping experiences with a reminder tchotchke, like a small item carrying your store logo.

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