MANILA, Philippines - Filipino consumers are generally able to predict their spending habits based on their perception of whether trying or better times are ahead, a study showed.
Market research group Kantar Worldpanel conducted a study among 3,000 households nationwide last year to determine their outlook on their purchasing power for 2011.
The company noted that their consumer outlook on spending mirrors their actual purchases of fast moving consumer goods (FMCGs) this year.
FMCGs are products that are sold quickly, such as grocery items.
Below are the results of the study, which were released on Wednesday:
- Those who are expecting to have less purchasing power this year (14%) showed an increase in purchases by 3%, lower than the inflation rate (5.1%).
- Those who are expecting to have the same purchasing power this year (48%) showed an increase in purchases by 5%, almost the same as the inflation rate.
- Those who are expecting to have more purchasing power this year (38%) showed an increase in purchases by 9%, higher than the inflation rate.
"Budgets are adjusted and allocated according to what FMCG items and/or purchases are deemed most important to the households," Luz Barra, commercial director for Kantar Worldpanel, said in a statement.
Different results, however, were seen among socioeconomic classes.
The study showed that those who belong to classes A and B spent more on FMCGs regardless of their outlook for this year, with actual spending growing by 44% (negative outlook), 10% (neutral outlook) and 13% (same outlook).
Those in class C who expected a decrease in purchasing power showed a 15% rise in FMCG spending, while others with an optimistic outlook recorded zero growth.
Class D and E homes, meanwhile, had actual purchases reflecting their outlook.
"The 38% of households who predicted improving purchasing power in 2011 spent more with a 10% increase in spending recorded, and those who were more pessimistic (14%) spent less with a negligible 1% growth," Kantar Worldpanel said.
"Class D and E consumers surveyed who predicted the same purchasing capacity relatively maintained their spending habits with a minimal 6% increase on FMCG spending. This segment clearly proves that their FMCG spending does indeed reflect their purchasing power," it added.