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Distateful Ads Hurt Brand Appeal

Thirty-five percent of respondents said they have chosen not to purchase a certain brand because they found the advertisements distasteful. Another 22% said they have not done so but have thought about doing it, and 43% said they have never done so, writes MarketingCharts.

In addition, 28% of respondents said they have chosen not to purchase a brand because they didn’t like the spokesperson being used, with 22% having thought of doing so and 50% having never done so. Twenty-seven percent of respondents said they chose not to purchase a brand because they did not like a program or event sponsored by it, with 20% having thought of doing so and 52% having never done so.

In all three cases of respondents choosing not to purchase a brand because of advertising, spokesperson or sponsorship, a majority have made that decision in the last year as opposed to more than a year ago.

Gender, Age Make Varying Differences

The gender and age of a consumer can have a varying impact on whether they will choose not to buy a brand due to distaste for some part of its promotional strategy. Slightly more women (36%) have chosen not to purchase a brand due to its advertising than men (35%). However, more men have chosen not to purchase due to its spokesperson (32%) than women (25%). More men have also chosen not to purchase a product due to a program or event sponsored by it (29%) than women (22%).

Interestingly, respondents aged 18-34 generally had similar rates of choosing not to buy a brand due to distaste for its promotion as respondents aged 55 and up, with middle-aged respondents having lower levels of severe promotional distaste.

Thirty-seven percent of both respondents aged 18-34 and 55-plus have chosen not to purchase a brand due to its advertising, compared to 34% of respondents aged 35-44 and 32% of respondents aged 45-54. Thirty percent of respondents aged 55-plus have chosen not to purchase a brand due to its spokesperson, followed closely by 29% of respondents aged 18-34 and smaller percentages of respondents in the middle two age groups.

The one exception to this pattern was with sponsorship issues: 26% of all age groups have chosen not to buy a brand due to a program or event sponsored by it except 55-plus (30%).

College Grads, Wealthy More Easily Offended

College graduates and respondents earning more than $75,000 a year had the highest levels of choosing not to purchase a brand due to some part of its promotional strategy. Forty-three percent of college graduates have chosen not to purchase a brand due to distasteful advertising, compared to 37% of respondents with some college and 29% with a high school degree or less.

In addition, 33% of college graduates have chosen not to purchase a brand because of the spokesperson, compared to 31% of respondents with some college and 23% of respondents with a high school degree or less. And 33% of college graduates have chosen not to purchase a brand because of a sponsorship issue, compared to 27% of respondents with some college and 24% of respondents with a high school degree or less.

Americans Trust Soft Drink Advertising

Brands seeking to avoid losing customers due to distaste with their advertising may want to examine the promotional strategies of the soft drink industry. Among five major industries, Americans trust soft drink advertising the most, according to another recent Harris Poll.

Thirty-four percent of respondents 18 and up said soft drink advertising was the most trustworthy, while the next-most trusted industry, fast food, only had its advertisements rated most trustworthy by 22% of all respondents 18 and up. Pharmaceutical companies came in third place (18%), auto companies came in fourth place (14%), and financial services companies came in last (13%).

About the Survey: This Adweek Media/Harris Poll was conducted online within the United States February 2-4, 2010 among 2,194 adults (aged 18 and up). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Where appropriate, this data were also weighted to reflect the composition of the adult online population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

Credit Card Usage Remains Low

Credit Card Usage Remains Low

 Although Census Bureau estimates indicate 181 million Americans will own credit cards this year, their usage rate remains low, according to recent research from compete.

Many Credit Card Owners Use Them 3x/Month or Less
Almost half of credit card owners only use them an average of three times a month or less. compete data indicates that 19% of credit card owners use them less than once a month, and another 28% use them one to three times a month. However, the largest single bloc of credit card owners (37%) uses them one to six times a week, and another 16% use credit cards seven or more times a week.

Debit Cards Skew Younger, Female
A large proportion of credit card owners, 81%, also own debit cards. While debit card ownership often spurs greater usage of credit cards, it also means that four in five credit card owners have an alternative method of card-based payment.

Debit card owners tend to be younger, with 86% of credit card owners ages 18-34 owning one compared to 79% of credit card owners ages 35-54 and 55% of credit card owners ages 55 and older. In addition, a greater percentage of female (83%) credit card owners also owns a debit card, compared to 75% of male credit card owners.

Interestingly, middle class credit card owners with a household income of $60,000 to $99,000 a year are the most likely to own a debit card (85%). This is followed by affluent credit card owners earning a household income of $100,000 or more (81%), and working class credit card owners earning a household income of less than $60,000 (74%).

Credit Cards Used for Infrequent, Expensive Purchases
Credit cards are generally used for travel and other more expensive, but less frequent, purchases. For comparatively less expensive products/services such as groceries or eating out, all three modes (credit, debit and cash) seem to be commonly used. However, debit cards seem to be more commonly used for such expenses as compared to cash. For smaller expenses like buying a coffee or for going for a movie, however, credit card holders still prefer to use cash.

In essence, while credit cards have a broad distribution, debit cards are used for specific types of purchases and are not used frequently as substitutes. However, to increase frequency of use, credit card issuers could try to get more card holders to use their credit cards for smaller expenses like groceries, common personal items, as well as small daily expenses like a coffee.

Wallet Share Competition is Open
compete draws the following three key conclusions from this data:

  • The competition for share of wallet is still open. Although widely distributed, credit cards are still not the primary mode of payment.
  • Credit card issuers must target increasing the usage of each credit card, instead of just focusing on increasing number of credit card holders.
  • To do so, credit card issuers need to find different ways to make it more attractive for card holders to use credit cards for most expenses. Carving niches for usage may be one approach for card issuers to drive further differentiation and usage. For example, co-branding with frequently visited points of purchase may help drive more usage of their cards.

Revolving Consumer Credit in Downward Pattern
Although continued strong performance in the non-revolving U.S. consumer credit sector drove an increase in the overall U.S. consumer credit score for January 2010, revolving consumer credit, which mostly consists of credit card debt, fell 2.3% in January 2010. As reported by Retailer Daily, in some respects this drop may be seen as good news for credit card issuers, as it moderated a trend of severe revolving credit declines that included drops of 12.9%, 18.5% and 13.3% in the three preceding months.

Simultaneous TV/Web Usage Jumps

Simultaneous TV/Web Usage Jumps

 More people spent more time simultaneously viewing the internet and TV in December 2009 than in June 2009 or December 2008, according to the Three Screens Report from The Nielsen Company.

TV and Web: The Perfect Pair
In December 2009, 59% of Americans used TV and the internet simultaneously, compared to 56.9% in June 2009 and 57.5% in December 2008. On a year-over-year basis, participation in this activity increased 2.7%.

Counting individual users, 134,056 Americans used TV and the internet simultaneously in December 2009. This compares to 128,047 in June 2009 and 128,167 in December 2008. On a year-over-year basis, the number of people using TV and the internet simultaneously increased 4.6%.

Time Spent in Simultaneous Usage Rises 34.5%
The time spent per person simultaneously using the internet and TV was three hours and thirty minutes in December 2009, compared to two hours and 39 minutes in June 2009 and two hours and 36 minutes in December 2008. On a year-over-year basis, time spent simultaneously using these two forms of electronic media grew a significant 34.5%.

TV Time Bites into Web Time
TV usage appears to be spilling into time spent on the internet, rather than vice versa. Panelists spent an average of 34% of their internet time also watching TV in December 2009, compared to 27.9% in June 2009 and 29.9% in December 2008. On a year-over-year basis, the amount of internet time panelists spent watching TV rose 13.9%.

In contrast, panelists only spent 3.1% of their December 2009 watching TV time also using the internet, compared to 2.7% in June 2009 and 2.4% in December 2008. Despite the much smaller percentages, it is worth noting that the TV-watching time spent also using the internet grew at a much higher annual rate of 29.7%, more than double the growth rate of internet time spent also watching TV.

Facebook, Google and Yahoo Top Sites for Major Event TV Viewers
Viewers of major TV events, such as the Super Bowl and the Academy Awards, favor Facebook, Google and Yahoo as destinations for their simultaneous surfing, according to previous Nielsen research. Almost 13% of 2010 Super Bowl viewers simultaneously used the internet, while almost 9% of 2010 Academy Awards viewers did the same. The top three most visited sites for Super Bowl viewers were Google, Facebook and Yahoo. Academy Awards viewers preferred the same top three sites, but switched the ranking of Facebook and Google to numbers one and two, respectively.

About the Survey: Nielsen’s Three Screen Report tracks consumption across TV, Internet and mobile phones.

Reverse Outsourcing Means Job Opportunities in US.

How to Work From Home

Reverse Outsourcing Means Job Opportunities in U.S.

By TORY JOHNSON

Feb. 15, 2010—

We often hear about Americans' losing jobs as employers send the work overseas to save money. But have you heard of reverse outsourcing: foreign companies hiring American workers, especially when a specific skill can only be found among U.S. talent?

I looked at two global Web sites where this is happening: Elance.com and oDesk.com, popular online marketplaces that connect freelance talent with businesses of all sizes around the globe, both of which say the growth in non-U.S. companies' hiring Americans is accelerating at a rapid pace.

Sure, companies can -- and do -- hire low-cost workers worldwide to perform technical tasks and other back-end work. But in many cases, Americans have the edge when it comes to customer service and support, public relations, Web site content, branding and marketing to a U.S. customer base.

American freelancers earned more than $15 million in 2009 from non-U.S. companies for work performed through Elance and oDesk, and many of them earned even more money by building relationships with the same businesses on their own. That figure is expected to double this year as companies in India, Singapore, Thailand, Germany, Israel and beyond seek U.S. talent for short- and long-term project work.

Here's how to grab some of that money for yourself:

Create a thorough profile. Visit Elance.com and oDesk.com to create profiles. (You can work for one or both sites. They're free to join, and they take a commission of about 10 percent on earnings.) Just limit your profile to the basics: Go in-depth instead by adding links to your work history and take the system assessments to certify your skill level. That gives businesses more confidence in your skills when considering you for projects.

Don't wait for businesses to find you, start bidding on projects. Just as it's unlikely that an employer will find and select your resume among thousands submitted to databases, the same is true on these sites. You're more likely to be hired if you apply -- or bid -- for projects instead of waiting for someone to discover you.

Reverse Outsource

Consider low-rate projects to get started. This is a common complaint about both sites: The wages are so low, making it impossible for U.S. workers to compete effectively with overseas talent for jobs. While not everyone has experienced that challenge, those who do -- and have overcome it -- suggest accepting a low rate for the first few jobs just to get a foot in the door, so to speak. That helps you build a track-record, amass positive feedback and develop credibility in the marketplace.

Think globally but small world. When bidding on projects or connecting with companies, find a connection. Have you ever vacationed in their country? Do you have friends or family from there? Do you like the cuisine? Have you seen a movie made on their turf? Make it personal, to let the company know you're interested in where they are and who they are.

Be flexible with hours. Flexibility is never more important than when working with overseas clients who are likely in a different time zone. You may have to take a conference call at 3 a.m. It won't happen every day, but don't be surprised if it's required occasionally.

Embrace technology. Instant messaging and Skype make it possible to see and speak to businesses anywhere and everywhere at anytime, which can eliminate barriers of distance and culture. If you're not yet comfortable with such programs, ask a friend or family member for a tutorial. You'll pick it up in no time.

Tory Johnson is the CEO of Women for Hire and the workplace contributor on ABC's "Good Morning America." Talk to her directly at Twitter.com/ToryJohnson.

Click here to return to the "Good Morning America" Web site.

Market Research

Here's another article I enjoyed! I'm share with you...LaTanya Junior

Whether expanding a new line or starting a business, market research for your small business is a necessary component for success. As any business owner learns soon enough, risks are part of business. With limited resources, entrepreneurs know risk needs to be calculated. Employing market research helps you sort out the risks involved.

The benefits of market research for small business range from finding hidden niches and preserving capital to building customer loyalty and identifying more business opportunities with existing customers.

Before you take the path to greater customer understanding by market research, it's important to know the common pitfalls encountered by small business. Avoid these 6 common mistakes in market research for small business.

Think It's Costly: Bob Kaden, market research expert and author of "Guerrilla Marketing Research" knows too well the challenge small business owners face to afford the costs of conducting market research. Small businesses believe focus groups and surveys are unaffordable. Marketing research costs can range from a few thousand dollars to $25,000 annually.

Should you hire a professional or go it alone? "If you have the time and interest to learn what it takes to do effective research, there is no reason you can't execute the studies yourself at a fraction of the cost it would take you to use a professional," states Kaden in "Guerrilla Marketing Research." On the contrary, Kaden feels a solid market research professional is invaluable. Spend the time to learn what you don't know and need to know.

Try Secondary Research Only: Research comes in 2 forms: primary and secondary. Primary research is first hand knowledge you gain directly from the marketplace and often uses techniques as focus groups and surveys. Secondary research is usually published studies available online or from your library providing broad knowledge about your markets. Learning about your business and industry from secondary research is a good start but primary research allows you to target your efforts and understand customers' attitudes in real time.

Use Web Searching: The Internet has opened up a flood of business information that was once available to big companies or those with money. No doubt conducting secondary market research on Yahoo or Google saves time and money for small business. Search engines mine only a portion of the web and often the good info you need will be part of the deep web or on a paid search like Lexis Nexis. To save money, visit your local library, business center, or college to gain access to the quality information you need at zero cost.

Hit the Wall: Any sizable research project runs into the U-shaped curve. Your enthusiasm and motivation are high at the beginning but as the project progresses you reach a wall. As you start to take in more information, the level of complexity rises. At this point it's easy to lose motivation and cut the research efforts short. Those who persist soon realize it all comes together in the end. To best manage your cycle of motivation for the project, start your secondary market research by getting an understanding of your industry. Don't wait too long to get in the field and talk to potential customers.

Rely on Family Focus Group: A common mistake of new startups is asking those close to you for feedback on your product and service. Those who know you will want to guard your feelings. Friends and family make the worst possible selection of a focus group. You need to talk to real customers about the pros and cons of your offer and use your friends and family as support not market research.

Big Company Attitude: You spent years in your industry and understand customers... who needs market research? You carry plenty of baggage and preconceived notions of customers needs and wants. Test your assumptions on the market for real insight on customer attitudes and behavior.

All too often business owners will downplay the importance of gaining customer insight by market research. It's absurd how many businesses are launched without ever talking to a single potential customer. Avoid the common errors and use market research wisely to position your business for success.

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