More PowerPoint Examples:International Business: "Nielsen Consumer Confidence Index"
(Summer 2007)
Some Background Information:The Nielsen Consumer Confidence Index is calculated based on consumer's confidence in the job market, status of personal finances and their readiness to spend. I presented it together with a personally developed feedback model during the summer 2007 seminar 'International Marketing'.
The key element of these feedback loops is the personal perception of 'pressure' caused by macro-economic variables. These pressures are inflicting the domestic culture of a nation and alter both the perception of influential peer groups and individual customers. Perception is changing values, needs and wants of consumers and this - together with real influence of economic variables - affects both directly and indirectly specific brands or entire industries.
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The Index in April 2008 - a brief update
The last Nielsen Global Online Consumer Survey was conducted by Nielsen Customized Research in April 2008 among 28,150 internet users in 51 global markets.
Consumers around the world are struggling with the same global issues: soaring oil and commodity prices which have impacted grocery prices, rising interest rates and increasing inflation are paired with falling property values, decreasing industrial output levels and weakening labor markets with growing unemployment rates.
There are only a few optimistic countries left: Taiwan was posting a significant 14 point increase in the past six month, Netherland's index improved by 5 points and Russia, Poland, Czech Republic (all +3), Brazil (+2) and Belgium (+1) looked good too. But the vast majority has a far more pessimistic look into the future. 56% of global online consumers think their country is currently in a recession. The consumer confidence worldwide has fallen to its lowest level in several years - the latest Nielsen Consumer Confidence Index dropped to 88, down six points in the last six month before April 2008. Consumer confidence fell in 39 out of 48 countries - with the deepest declines in New Zealand, USA and Latvia.
In the world's second largest economy, Japan, confidence plunged 19 points reflecting the country's rapidly aging population matched by a massive pension crisis and no confidence in the government's ability to resolve the problem. New Zealand's index dropped to the lowest level in a decade due to skyrocketing interest rates. Latvia is struggling with a runaway inflation (17.5% in April). While Spain suffered the biggest fall in consumer confidence globally this time (24 points down), the country with the biggest fall in the last survey, Italy, fall another four points - and nine in ten Italians see their country now in a recession.
The United States also suffered one the biggest fall in the Index, dropping 17 points (compared to an average drop of six points in Europe). With Middle Class household incomes stagnating for several years now Consumers' wages have been stretched to the maximum like never before. One in four Americans said they have 'no spare cash' after monthly essentials have been paid. One in five Belgians, Germans, French and British feel likewise.
Consumers ranked inflation as their biggest concern (61%), followed by unemployment (53%) - and it is no surprise that North Americans topped global regions for concern about falling property prices (24%).
An interesting finding was the fact that only one in ten consumers anticipates a global recession in 2009. With this recession being unfortunately a reality now it is more than likely that this number will dramatically change in the next survey.
David Parma, global head of Customized Research at Nielsen, summarized the economic situation with these words: "Consumers have many reasons to feel pessimistic right now and the stark reality is that there's not much out there to feel optimistic about." [Nielsen press release from May 29, 2008]
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Academia©2008 Stephan Kroker-Bode