|
17 October 2006
Taipei
iving cost remains on the high level while personal income nimbles. Consumers in Taiwan are increasingly price conscious as they spend yet there is a discerning group who is ready to pay a premium for products that are of high quality. These are the so-called ‘Splurge-and-Scrimp Consumers’ which made up of about 8.7 million consumers in Taiwan. Capturing this group of vast rational consumers have become one of the most important subjects for marketers.
Nielsen Media Research (NMR) recently held a seminar 'Trend of Polarising: Splurge-and-Scrimp' which explained the rationale behind consumers who are willing to spend beyond their means for certain premium goods, splurge on appliances, automotive products and apartments, while they're bargain-hunting for everything else. In addition, NMR study also zooms into the profile of these ‘Splurge-and-Scrimp Consumers’ and how they decide to shop for price or quality.
'These so-called "Splurge-and-Scrimp Consumers" are most difficult to please and have become a very powerful consumer group in Taiwan. They are typically well educated, from 20 to 39 years old and in the middle or upper class in urban area. Their main shopping behaviour is “a mix of Splurge-and-Scrimp”. When buying some specific things, price is their major concern, however, they would go for quality for premium products and services,' said Angel Chen, Associate Director, Nielsen Media Research Taiwan.
'Providing good products, nice design and great services are essential already. Companies thrive by catering to the penny-pinching impulses of consumers, or "spanning the poles" and appealing to both the high and low ends. Therefore, for individuals who splurge-and-scrimp, companies have to adapt to the polarization of the marketplace to get the survival key—strengthening the perception of value for money and offering an emotionally satisfying experience.’
'Easy going money and lack of consumer confidence led to people's binge-spending and scrimping. Consumers start to search for product information of what they want or shop via internet. In other words, consumers never stop searching for greater value and have become experts in "saving a penny”,' added Ms. Chen.
These Splurge-and-Scrimp consumers will go for price when buying Fast Moving Consumer Goods, fashion apparels and accessories on one hand while consider quality highly when choosing 3C (computer, communication, consumer electronics) products, household goods, cars, and tourist services.
Splurge-and-Scrimp consumers are also habit-forming to science. They are fast adopters of hi-tech and electronic products. Nearly 70 percent of Splurge-and-Scrimp consumers 'search information via the internet mainly', 30 percent 'can do nothing without a computer'.
Though Splurge-and-Scrimp consumers tend to polarise consumption behaviour, their media consumption remain focused on main mass media. 97 percent read the four biggest newspapers and nearly 99 percent internet users surf through five main portals. While they need media, they don’t quite trust them which giving rise to celebrity testimonial and product placement advertisements which are in general considered attractive and trusted with important product information.
'The key to capture these growing "Splurge-and-Scrimp" population is to have a good media planning and integrated communication strategy based on the media characteristics and benefits. For example products which Splurge-and-Scrimp consumers would pay a premium for their quality, it is best for marketers to use traditional mass media and internet as main channels for building up brand image and awareness. As for categories where Splurge-and-Scrimp consumers would after their price, it is wise for marketers to combine mass media and in-store display along with direct mail as the main promotion tools,' Ms. Chen added.
About Nielsen Media Research
Nielsen Media Research is the world leader in international media research and analysis. The company is active in 40 markets, offering television and radio audience measurement, advertising information services, print readership and customised media research Nielsen Media Research measures advertising expenditures and creative content in 30 of the world’s leading advertising markets. Through a network of affiliates, coverage is extended to more than 70 countries, representing 85 percent of the world’s advertising spending.
Back to Top
|
