Retail: Will that be Cash or Credit?
New STORES Consumer Credit Survey Answers
Critical Question: Will That Be Cash or Charge?
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New STORES Consumer Credit Survey Answers
Critical Question: Will That Be Cash or Charge?
--Inaugural Study Examines Payment Landscape and Consumer Credit Behavior--
Washington, DC, November 5, 2003— With a variety of payment options and benefits available, consumers are able to make more payment choices today than they were just a year ago. The STORES Magazine 2003 Consumer Credit Survey, conducted by BIGresearch, examines today’s changing payment landscape, studying which cards consumers carry and how they are using them.
According to the survey, the average consumer has at least two credit cards in his wallet; affluent consumers have several more. The majority of consumers carry VISA (64%), and nearly as many carry MasterCard (54%). Ranked third was the Discover Card (24%), and 11 percent hold American Express cards.
One interesting finding in the study is how consumers are using debit cards, said Rick Gallagher, NRF Vice President and Publisher of STORES Magazine. “The study demonstrates that people are using debit cards responsibly, using them for consumables like grocery and gasoline,” he said. “Consumers are clearly using debit cards as a replacement for cash and checks.”
Through an analysis of what cards consumers own and use for specific purchases such as apparel, groceries, gasoline, electronics/furniture, health and beauty aids and utility bills, the study takes an in-depth look at three key trends that emerged: the power of the affluent shopper, the rise of the practical consumer and the dynamics of debit cards.
“Consumers are clearly changing the way they shop,” said Phil Rist, Vice President of Strategy for BIGresearch. “Understanding how consumers choose to pay is the first step on the path to improved marketing campaigns, more precise targeting of rewards and understanding what motivates the consumer to make a purchase.”
The study also addresses the effectiveness of incentives for consumers when choosing payment options such as lower interest rates, cash back, airline miles and rewards programs.
Key findings of the survey:
- VISA is the most popular card to own (64%) and use (42%) for personal purchases.
- Most consumers said they would be motivated to use a credit card if their interest rates were lower (62%). Cash-back (51%) was the second largest motivator and rewards/points programs (40%) were third.
- Women are more likely than men to use debit cards.
- Most consumers use a credit card (41%) when purchasing big-ticket items such as furniture or electronics.
- The majority of consumers prefer using cash (33%) or their debit card (32%) when purchasing groceries.
- Consumers were fairly split on how they buy apparel with 25 percent each choosing cash, debit card and credit card.
- When paying utility bills, the majority (72%) chooses checks, with 9 percent choosing debit cards.
About the Survey
The 2003 STORES Consumer Credit Survey was designed to gauge consumer behavior and shopping trends related to various payment options. The survey of 8,399 consumers was conducted September 4 –11, 2003. The consumer poll has a margin of error of plus or minus 1.0 percent.
STORES Magazine is the official magazine of the National Retail Federation.
BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch’s syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,000 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.
The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet and independent stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.4 million U.S. retail establishments, more than 20 million employees – about one in five American workers – and 2002 sales of $3.6 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.
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Complete results for the STORES Consumer Credit Survey are available in
the December issue of STORES Magazine and online at www.stores.org.
Posted by Craig at November 5, 2003 06:37 PM