DVC Group/Harris Interactive Study Reveals Effects of September 11 On Consumer Behavior.

Business Editors

MORRISTOWN, N.J.--(BUSINESS WIRE)--Oct. 24, 2001

Cause-Related Marketing is "In" New Cars and "Uncensored" Media

are "Out"

DVC Group, a DVC Worldwide company that provides fully-integrated marketing, communications and technology solutions, and Harris Interactive(SM) (Nasdaq: HPOL), a worldwide market research and consulting firm, today announced the results of a study on the impact of the events of September 11 on consumer behavior. An online poll of nearly 2000 adults aged 25-54, conducted from October 4-8, found that consumers are changing their near-term behaviors in several areas, including travel, safety, finances, philanthropy, entertainment and health. And in some instances, the most dramatic change occurs among women.

Consumers now feel that it is even better to give than receive. One of the largest anticipated behavioral changes measured in this study is the increase in consumer philanthropy. Based on the poll, 50 percent of Americans aged 25-54 are more likely to buy a product because of a donation to the relief effort or another charity. Among women in this age group, the likelihood is even stronger at 57 percent.

While the study reveals consumers showing increased signs of cocooning, Americans aren't going to be snuggling on the couch watching nearly as much reality TV. Viewing of a particular reality television is expected to decline sharply, with 50 percent of consumers less likely to watch the program in the coming months. In fact, all media usage will be under closer scrutiny because 35 percent of consumers with children and 40 percent of women intend to more closely monitor what their children watch and read.

Happy hour business is also expected to be slightly off across the country, with 24 percent of bar patrons, including 29 percent of the women less likely to be going to bars with friends. However, consumers are more likely to entertain at home (20 percent), and to prepare a large meal at home (17 percent). And if you can't make it for dinner, your host will likely call just to say "hi": 40 percent of all consumers and 44 percent of women expect to phone their families and friends on a more regular basis.

This holiday season, "leaving on a jet plane" will sound more like, "over the river and through the woods to grandmother's house we go". Airline travel shows signs of continued decline, with 39 percent of all and 46 percent of female travelers less likely to use an airplane as the first choice of transportation. Conversely, the likelihood of planning a driving vacation is up slightly (20 percent).

The gym may also be a more popular place. Both males and females revealed they plan to pay more attention to living a healthy lifestyle (27 percent more likely). But interest in kicking the smoking habit has not changed much since September 11, with an almost equal number of smokers more (23 percent) and less (18 percent) likely to quit.

Consumers are also closely watching their dollars. Almost half (42 percent) expect to re-evaluate their finances, and 26 percent are more likely to increase the amount of money saved. Don't expect to see as many new cars being driven out of dealerships in the coming weeks. Shopping for a new car will likely be deferred by 30 percent of Americans.

Smaller changes in shopping behavior are expected in other areas. Coupon use should rise for about 19 percent of consumers, and 23 percent of consumers are more likely to stock up on household goods in the near term, perhaps mirroring the "bomb shelter" mentality of a past generation. Somewhat surprisingly, 18 percent of all consumers and 21 percent of women say they will be less likely to shop on the Internet or through catalogs versus visiting a store, a possible reflection of people's need to reconnect with others in a more social environment. In these cost-conscious times, a rush to purchase store brands over national brands is curiously absent, with statistically equal numbers of people more (14 percent) and less (9 percent) likely to favor established brands.

"The DVC/Harris Interactive(SM) study has some interesting implications for marketers," said George Valva, CEO of DVC Worldwide and Chairman and CEO of DVC Group. "Given the importance of women in the marketplace, it is critical to consider the impact of these changes on shopping as they will not only affect programs targeting mothers, but will also create challenges in marketing to children. Communication strategies, both messaging and placement, must take into account the mom's more active role in screening her children's media consumption."

Susan Furlong, President of DVC Group, noted that "marketers must obviously adapt programs to the temper of the times, ensuring that they reflect the mood of the consumer. Brands remain strong, perhaps indicative of the importance of the familiar, the tried-and-true in people's lives. But, while initiatives should never appear opportunistic, it is clear that consumers have reshuffled their priorities and marketers must be sensitive to that. DVC will be instilling these consumer insights into the marketing programs that we develop to best meet the business needs of our clients."

Methodology

The study was conducted by Harris Interactive(SM) via its QuickQuery(SM) online omnibus between October 4-8, 2001, interviewing 1,952 U.S. adults (aged 25-54). The margin of error is (+/-3) percentage points and the data were weighted to be representative of the total U.S. adult population.

About DVC

DVC Group, a DVC Worldwide company, is a professional services firm that provides fully integrated marketing, communications and technology solutions. The company uses behavioral marketing in its work, and is uniquely qualified to help leading and emerging brands and companies generate results, build customer relationships and improve efficiency. DVC Group, Inc. has three practice areas: DVC Communications (Promotion and Marketing Communications), DVC ActiveCare (Healthcare Marketing) and DVCi Technologies (e-Solutions). The company is headquartered in Morristown, NJ, with offices in New York City and Minneapolis.

About Harris Interactive(SM)

Harris Interactive(SM) (Nasdaq: HPOL) is a worldwide market research and consulting firm, best known for The Harris Poll (R) and its pioneering use of the Internet to conduct scientifically accurate market research via its multimillion member online panel. The company has more than 45 years of experience in supplying clients with actionable knowledge across multiple markets. Through its U.S. and Global Network offices, the company conducts international research in multiple, localized languages. For more information about Harris Interactive, visit www.harrisinteractive.com