US CONSUMER PERCEPTIONS - OF COVID-19 Ipsos SMX Syndicated Online Community 031120

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US CONSUMER PERCEPTIONS - OF COVID-19 Ipsos SMX Syndicated Online Community 031120
US CONSUMER
PERCEPTIONS
OF COVID-19

Ipsos SMX Syndicated Online Community
March 5 – 9, 2020

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and Proprietary information and may not be disclosed or
reproduced without the prior written consent of Ipsos.
US CONSUMER PERCEPTIONS - OF COVID-19 Ipsos SMX Syndicated Online Community 031120
US Consumers’ top of mind associations with COVID-19 are emotionally charged
and opinion-driven.

                                                                                WHAT WORDS DO YOU ASSOCIATE WITH THE CORONAVIRUS (COVID-19)?
                                                                                          Based on AI text analytics processing; (n=824)
  "I am indifferent. I'm a little nervous about it,
  but I'm not obsessing about it. I am traveling

                                                                                                                                              c on
  on a plane in April and May and am a little

                                                                                                                                                                  fast
                                                                                                                                               t agi

                                                                                                                                                                                  ry
                                                                                                                                                                                 sca
  concerned about it. I am not taking any

                                                                                                                                                    ous
                                                                                                             m
  precautions except staying away from people                                                                     ed
                                                                                                                       ia

                                                                                                                                                              S p re
  that are visibly ill and really making an extra

                                                                                                                                                                ad
                                                                                          dea                                                                                                   n                r
  effort to wash my hands more."                                                                dly
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                                                                                                                                                                                 Em
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                                                                                                                                      a tio
                                                                                                                                              n
                                                                                                                                                                                                            worried
  "I’m aggravated that the press is continuously                                         unknown
  stirring this up so that some people are in a full-
                                                                                                                                                                                                          concerned

  blown panic!.. I’m not going to limit my
                                                                                           hy pe
  activities to the point of become a hermit                                                       t er i
                                                                                                         a

                                                                                                                                              on
                                                                                            hy s

                                                                                                                                                                         Di
  because of what ‘might happen‘. My chances

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                                                                                                                                                                                                          us

                                                                                                                                       pi
                                                                                                                  us

                                                                                                                                                                                 as
                                                                                                                                  O
                                                                                                             io
  of getting in a serious car accident are greater                                                        er

                                                                                                                                                                                 e
                                                                                                      s

  than getting the coronavirus. I still drive my car

                                                                                                                                 s
                                                                                                                             ou
                                                                                                                            er
                                                                                                                            ng
  everyday though."

                                                                                                                                                           n
                                                                                                                       da

                                                                                                                                                                         flu v
                                                                                                                                                       blow

                                                                                                                                                                          irus
                                                                                                                                                     O v er
            Source: Ipsos SMX Online Community; Corona Virus Discussion Board   Note: Themes are not mutually exclusive as the respondents can express
2 © Ipsos                                                                       more than one theme. Counts are reproportioned to illustrate relative share
            (March 5 – 9, 2020; n=824)
Consumers feel they are receiving mixed messages on COVID-19 across media outlets
– sparking concern, frustration, fear and confusion.

                                                                                                                    THE FRUSTRATED CONSUMER:
                                                                                                                     “The amount of misinformation and hysteria is
                                                                                                                    frustrating!”

                                                                                                                    THE RELAXED CONSUMER:
                                                                                                                    “All that's happening is people trying to get others to
                                                                                                                    freak out about it, but nothing much is really going on.”

                                                                                                                    THE FEARFUL CONSUMER:
                                                                                                                    “It makes me nervous because of the unknowns and
                                                                                                                    misinformation.”

                                                                                                                    THE CONFUSED CONSUMER:
                                                           *Member provided image                                   So much information that I don't know what to do or
                                                                                                                    where to turn if it gets bad.

3 © Ipsos   Source: Ipsos SMX Online Community; Corona Virus Discussion Board (March 5 – 9, 2020; n=726)
            Now, we want you to upload an image that represents how you feel today about Coronavirus? Then tell us why you chose that image.
Emotions aside, inconsistent messaging surrounding the virus leads to a
behavioral split, ranging from…

                  “It’s just another                                                                                                 “I’m preparing for
                         flu season”                                                                                                 the worst”
      Social media prompts dismissal                                                                                                  Social media fuels fear through the
        through shared discussion of:                                                                                                 virality/shareability of:
                  Ø Potential misinformation                                                                                          Ø Empty shelf images
   Ø A sense of ‘distance’ from the outbreak                                                                                          Ø Increased pricing on everyday goods
         Ø Comparisons to the traditional flu                                                                                         Ø Personal testimony shared online

   “I think it has been overblown by the media. It                                                                                    “The situation feels very chaotic and scary because
  may be for political reasons. I'm not sure. But the                                                                                 of all the unknowns. There aren't any definite ways
regular flu has killed so many people in prior years                                                                                  to control or treat the virus yet. We are all just doing
     but did not have the hysteria surrounding it.”                                                                                   our best and waiting for the worst, in a way.”

   © Ipsos       Source: Ipsos SMX Online Community; Corona Virus Discussion Board (March 5 – 9, 2020; n=726)
                 Now, we want you to upload an image that represents how you feel today about Coronavirus? Then tell us why you chose that image.
Though only 1 in 4 report a change in their shopping habits already, the quickly
changing environment forces consumers to adjust across the board.

23%            REPORT ALREADY CHANGING
               THEIR SHOPPING HABITS                                                              77%             SAY THEY HAVEN’T CHANGED
                                                                                                                  SHOPPING HABITS YET.

                                                                                                          Yet even these consumers report forced mindfulness in
                                                                                                           navigating empty shelves and abnormal crowd flow.
                                         “I will have to spend
                                         more time shopping,
                                         will add to my
                                         stockpile of water,                                                  “People are
                                         food and supplies,                                               clearing shelves,
                                         and I will have to                                                  and I am not
                                         shop around more                                                       sure why.”
                                         since stock is out.”

                                                                                                                                            *Member provided image

 © Ipsos   Source: Ipsos SMX Online Community; Corona Virus Discussion Board (March 5 – 9, 2020; n=726)
           Have you changed your shopping habits in any way? If “yes”, please explain.
A number of consumers believe they haven’t changed their shopping routine.
In reality, they are ready to.

   NO, I HAVEN’T CHANGED MY ROUTINE, THOUGH…                                                                  WHAT WOULD BRIDGE THIS GAP
   “I have always gone grocery shopping in the store, and I
   might use Instacart now instead to avoid germs.”                                                           FROM THOUGHT TO ACTION?

   NO, I HAVEN’T CHANGED MY ROUTINE, BUT…                                                                 •   Virus spread reported in
   “I grabbed some extra Lysol wipes and toilet paper,                                                        their proximity
   because of the crazy people who are buying crates. Who                                                 •   Limited product supply and
   knows when these things will become restocked
                                                                                                              worry of delayed restocks
   permanently.”
                                                                                                          •   Spiking concern from poor
                                                                                                              performance in the stock
   NO, I HAVEN’T CHANGED MY ROUTINE, HOWEVER…                                                                 market
   “I have considered purchasing more canned goods or
   frozen foods, so we wouldn’t need to go to the store.”

 © Ipsos   Source: Ipsos SMX Online Community; Corona Virus Discussion Board (March 5 – 9, 2020; n=726)
           Have you changed your shopping habits in any way? If “yes”, please explain.
Those who have already broken routine adjust how and what they shop for.

     HOW CONSUMERS SHOP                                                                                        WHAT CONSUMERS SHOP FOR

     Consumers cut down their number                                                                           They default to trusted brands for
     of trips to the store, where possible                                                                     their ‘preparedness kit’. Local
     – opting to buy in bulk or online.                                                                        sourcing is important to some.

     ü     Use of online & delivery                                                                            ü   Hand sanitizer
     ü     Shopping in bulk                                                                                    ü   Immune boosting items (i.e. vitamins)
     ü     Shopping at less crowded times                                                                      ü   Paper goods (i.e. TP, paper towels)
     ü     Sanitizing before and after visits                                                                  ü   House Cleaner (i.e. soap, disinfectant)
     ü     Expecting longer trips in-store                                                                     ü   Food (i.e. canned, frozen goods)
     ü     Local-focused retailers                                                                             ü   Domestically sourced products
     ü     Visiting different stores (i.e. limited                                                             ü   Local items preferred when possible
           supply at their preferred retailer)

 © Ipsos        Source: Ipsos SMX Online Community; Corona Virus Discussion Board (March 5 – 9, 2020; n=726)
                Have you changed your shopping habits in any way? If “yes”, please explain.
A number of emotional pulls impact the severity of shopping changes.

                                                     THE SEVERITY OF CONSUMERS’ REACTION STEMS FROM…

    FEAR OF THE UNKNOWN                                            OVERCORRECTION FROM                                       CRAVING CONTROL
                                                                    CONFLICTING MEDIA
 In the face of unknown impact, some                                                                                   Some combat perceived helplessness
consumers simply prepare for the worst.                   Disconnected, conflicting news updates trigger               by intentionally overpreparing – which
                                                              some to resort to extremes ‘just in case’.                     makes them feel in control.
    “I'm scared of all the unknowns
  regarding the virus. How long will it                   “I am positive that the news media is just trying              “Just stay in control with preventive
 last? How many will die? How much                         to get everyone in a panic. And it is working               measures such as hand sanitizer, gloves
            will it impact?”                              because the Costco in my area has crazy lines                 and masks. Keep things disinfected.”
                                                          and carts over flowing with paper towels, toilet
                                                             paper, and water. Then in other areas I’ve
                                                                  heard that rice is in shortage.”

             Source: Ipsos SMX Online Community; Corona Virus Discussion Board (March 5 – 9, 2020; n=726)
             Based on what you know today, how do you feel when you think about Coronavirus (COVID-19)? Why is that?
8 © Ipsos    Have you changed your shopping habits in any way? If “yes”, please explain.
             What changes do you anticipate making in the coming month(s)? Why do you expect to make those changes?
Retailers can reassure consumers by…

                                                                                           PROVIDING CONVENTIONAL SANITIZING:
                                                                                           “I now wipe down all shopping carts with the sanitizing wipes
                                                                                           provided - you can't be too careful.”

                                                                                           PROMOTING ONE STOP SHOPPING:
                                                                                           “I minimized the store that I go to, and have stocked some
                                                                                           emergency food just in case.”

                                                                                           OFFERING OFF-HOURS OR ONLINE SHOPPING OPTIONS:
                                                                                           “I am shopping more on line and tend to go early in the
                                                                                           morning when the stores aren't so crowded.”

                                                                                           COMMUNICATING SOURCING OF PRODUCTS CLEARLY:
                                                                                           “I do my research on products I buy. I try to buy American
                                                                                           made/locally produced whenever possibly to begin with.”

                                                                                           STOCKING OF NECESSITIES – WHEN POSSIBLE:
                                                                                           “I'm more concerned about shortages than the actual virus. It
                                                                                           wouldn't be uncalled for to have a weeks supply of extras such
                                                                                           as canned goods, water, toilet paper, medicine,
                                                                                           etc. Realistically having a weeks supply would probably be
                                                                                           good just in case of anything.”

 © Ipsos   Source: Ipsos SMX Online Community; Corona Virus Discussion Board (March 5 – 9, 2020; n=726)
           Have you changed your shopping habits in any way? If “yes”, please explain.
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