Survey shows slight rise in consumer confidence

The value of the research business was worth Bt2.5 billion in 2005 and increased to Bt2.9 billion last year. This year, Viriya estimates the business to be worth Bt3.5 billion.

She said the finance, information-technology and health industries - including hospitals and pharmaceutical companies - had significantly increased their hiring of marketing-research companies, while the consumer-product industry had always used their services.

She said that running a business right now required more energy than before. Companies need marketing information in very deep detail. Marketing-research companies not only provide figures, but also help analyse the data.

While businesses need more advertising and marketing activities to approach their targeted consumers, there has been a reduction in large-scale projects.

Evidence confirming a slackening in consumers' willingness to spend is a recent survey entitled "Thai View 6", conducted by TMRS from February 28 to March 1. The survey involved 505 Bangkok residents, aged 18 and up with family income of Bt10,000 a month.

The survey found a slight increase in confidence in the economy among Bangkokians over the last 12 months. Nevertheless, since the economic situation is still not back on track, they prefer to save money rather than spend easily like before. One statistic showed 82 per cent of the sample group goes straight home after work rather than spending time and money elsewhere.

Consumer products continue to witness solid spending, but luxury products tend to be the first thing cut. The market for large expenditures like new homes is sluggish.

The survey showed 73 per cent of Bangkok residents saved by cutting unnecessary expenses, 69 per cent by depositing more money in commercial banks and 63 per cent by comparing prices before making a purchase.

Viriya said emotional marketing would still work to attract consumers in the early stages, but marketers needed to focus on using clear reasoning to convince them.

In terms of forecasting changes within the next year or two, positive family relationships were likely to increase, but Bangkok residents believed unrest in the South, drug problems and crime were likely to worsen.

Overall, Bangkok residents were content with their lifestyles. Their desires were good health (90 per cent), financial stability (83 per cent), post-retirement happiness (78 per cent) and career success (72 per cent).

To commemorate His Majesty the King's 80th birthday, 86 per cent of Bangkok residents felt Thais should abide by his sufficiency-economy philosophy.

Nitida Asawanipont

The Nation