IRI Point of View introduction
Americans rang in the new year on Jan. 1, but they did not ring in a sunnier outlook. In fact, IRI’s Shopper Sentiment Index fell at the end of 2013 to 102.2, the lowest point for the year.
IRI’s Shopper Sentiment Index provides deep insight into how the economy is impacting consumers and changing how they approach grocery shopping, according to IRI editor Susan Viamari. The index provides perspective in terms of price sensitivity, brand loyalty and changes in spending required to maintain desired lifestyles. With a benchmark score of 100 based on Q1 2011 information, a Shopper Sentiment Index score of more than 100 reflects consumers who are less price driven, more loyal to favorite brands and better equipped to maintain their desired lifestyle without changes.
The decline in the index for the fourth quarter is an indication that while consumers are more comfortable today than they were at the start of 2011, they are nonetheless finding it difficult to maintain their desired lifestyle without making changes, Viamari said. As a result, they are becoming more price driven and less loyal to their favorite brands. Indeed, results of IRI’s Q4 2013 MarketPulse survey clearly validate this notion and plot a path for consumer packaged goods (CPG) marketers looking to thrive in a challenging consumer marketplace, Viamari said.