Going out of Business

by Maureen McCabe on May 28, 2009

If you don’t advertise people think you are going out of business?

New Ad-ology Study: Reduced Advertising During Recession Negatively Impacts Consumer Perception

“More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. Likewise, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business.”

Do you pay attention to ads?  I have seen some ads lately that have surprised me… I have thought … “did they advertise previously?”  Maybe they did and I just did not notice them. Maybe it’s my perception….

I noticed the “Going Out of  Business” signs on the IDG  Jewelers ( International Diamonds and Gold) sign at Polaris recently.  Not just that store, but all four Columbus locations are going out of business.  Their website confirms that.

They say other key findings of the study were:

  • 40% of consumers use coupons more now than a year ago
  • Most consumers are as willing or more willing to pay more for ‘healthy’ or ‘organic’ products than they were a year ago
  • A ‘deeply discounted price’ was the number-one factor that would make consumers more likely to purchase a big-ticket item (+$1,000)

Are you using more coupons?  I recently admitted that a coupon prompted us to try Mimi’s Cafe at Polaris finally.

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