Moms and the Economy: An Interview with C&R Research’s Susan Ford

By Patti Minglin

Today’s financial situation is indeed dire. You can’t seem to turn on the TV or flip through a newspaper without being reminded of home foreclosures, high fuel prices and the restructuring of major financial institutions. We have heard from the economic experts and those closely connected to Wall Street, but what about the real CEO of consumer spending? What do today’s moms think about the current state of our economy and how does this affect the way they connect with your brand?

Through recent longitudinal research, C&R Research set out to discover the impact today’s economic situation has on mom’s psyche, purse and shopping cart. Susan Ford, vice president of C&R and host of an M2Moms® Roundtable Lunch Discussion during this year’s conference, recently shared some of those findings with Patti Minglin, M2Moms® E-ssentials editor.

The Great Cut Back
“Moms from all economic levels are cutting back, not just those with less income coming into the household,” says Ford. “It is our hypothesis that even those moms that don’t need to cut back are doing so either proactively or subconsciously as a sign of solidarity. Moms that are not feeling an impact now don’t want to be caught off guard, or they don’t want to be seen as the mom who is flaunting that she hasn’t been hit yet.”

Their research found that across the board, moms are making major financial cuts in areas such as dining out, entertainment and fuel usage. While some categories like children’s clothing and grocery haven’t been hit quite as hard, moms are definitely cutting costs by looking at more cost-effective alternatives such as trading down to more generic brands. And as the media continues to monitor the progress of our economic woes, moms will be more inclined to follow suit. “Their emotional confidence in spending is driven by the media,” adds Ford.

The Kid Factor
“One third of moms say this is having a severe impact on their children,” says Ford. In addition to having an affect on kid-related purchases, the study found that the emotional stress of financial instability also trickles down to the children as well. “There is a bit of a sliver lining in the fact that moms now have the perfect opportunity to teach their children how to spend wisely.”

Another piece of good news? A downturn in the economy just may be good for the overall health of our children. “Some areas where moms are cutting back the most—fast food, fuel usage, entertainment—also tend to be the contributors of childhood obesity. Perhaps we are at a turning point with the health of our children,” states Ford.

Looking For Opportunity
Not everything about the poor economy is doom and gloom—especially when it comes to connecting your message with today’s moms. Moms are looking for solutions and those brands that deliver will continue to thrive despite a slow economy. “Marketers have a big opportunity to look like heroes or to look like heels,” says Ford. “If you keep touting the more expensive items moms will not hesitate to switch brands. However, if you offer them real solutions, you will solidify the relationship for the long term.”

Want to learn more? Join Susan during her M2Moms® Roundtable Lunch Discussion where she will dig deeper into the research findings and share her insights into how brands can continue to meet the needs of today’s moms.