Consumer Mindset - March 2024
This report is informed by the Credit Union Consumer Sentiment Index,
in partnership with Core Research.
WE ARE IN LIMBO LAND
The Collins English dictionary define Limbo as “a situation where you seem to be caught between stages and it is unclear what will happen next.”
This month has been marked by a series of poignant events and developments that have gripped the nation's attention; reflecting both global and domestic challenges and more to come even before the month is out. Right now, the only certainty it seems, is constant uncertainty.
INFORMATION WE CONSUME ALTERS OUR FRAME OF MIND.
Our inherent optimism, known as optimism bias, tends to shine brightest when life is stable and secure. But throw in some major stressors, like enduring global crises or recent national instability, and our perspective shifts. We find ourselves drawn more towards the negative.
This month, we decided to test this theory. We reviewed the news stories that people attended to and prioritised. We compared how people described their mental state when consuming daily information nearly a decade ago versus today. It turns out, our frame of mind when consuming day-to-day information has taken a significant hit. We're far less likely to say we feel connected, entertained and involved and significantly more likely to say we are anxious, stressed and fed-up.
So what? Despite the prevailing negativity, consumers still crave engagement and interaction. Brands need to foster meaningful, entertaining connections and provide moments of joy. “If you can’t get them in a good mood, put them in a good mood”
PREDICTED EASING, BUT CONCERN IS HOLDING.
At the start of 2024, a gradual easing of the cost-of-living crisis throughout the year was predicted. Inflation now stands at half of what it was this time last year, however this doesn’t mean prices are falling – just that they are rising less fast. This has yet to translate into tangible benefits for half of adults in Ireland who remain very or extremely concerned.
So what? There's a prevailing sentiment, trained by a lasting period of financial turmoil, of 'expecting the worst until proven otherwise'. Until there's sustained progress, this apprehension is likely to persist among the public.
THERE ARE SOME POSITIVES
There are many factors that impact people’s state of mind, confidence and outlook beyond War, Covid and Cost of living. Going forward Core Research will provide a holistic view of the nation. We will track people's hopes and concerns generating a Direction Score. The first reading of this in March suggests there is a slight uptick in upbeat feelings fuelled by aspects of life perceived to be within our control, namely; relationships, leisure activities, and health.
The impending introduction of two significant initiatives in Ireland (i) the new auto-enrolment pension scheme and (ii) the soft opt-out organ donation bill are viewed as crucial steps forward in enhancing pension coverage and potentially saving lives across Ireland.
So what? As discussions surrounding the importance of future preparedness gain momentum, these initiatives are poised to play a pivotal role in shaping the nation's socio-economic landscape.
