Key Trends in Consumer Policy

Background Paper to Creating Confident Consumers

May 2003

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Future Consumer Characteristics

• "Traditionals"
• "I-Cons"
• "Evolvers"

In a paper presented at the Creating the Future conference held in Brisbane on March 15 2002, Ross Honeywill from the Centre for Customer Strategy [5] identified three distinct consumer social types: "Traditionals", "Evolvers" and "I-Cons". The study on which he based his findings surveyed 250,000 respondents living in a number of countries, including New Zealand, over a five year period. The study suggests that consumers can be typified in the following way:

"Traditionals"

• focus on basic need consumption
• are motivated by price and a fair deal
• focus on functionality and the transaction
• trust and respect institutions
• like someone else to organise them.

MCA is familiar with the expectations of "Traditionals", and the research suggests that this group places the greatest reliance on government to provide them with information that allows them to make decisions with a high level of certainty. It is also suggests that they prefer information that is instructive and requires few choices. As "Evolvers" age and replace this group, the information that the Ministry currently provides may lose relevance.

"I-Cons"

• focus on discretionary choice consumption
• are motivated by choice and information
• focus on the relationship ahead of the transaction
• do not trust institutions
• insist on organising their own lives.

"I-Cons" are the new breed of knowledgeable consumer who do not rely on government to provide them with information unless it is relevant to them. They consume constantly and have an appetite for technology to accelerate that consumption. They do not fit into traditional demographic descriptions, as they can be identified across all age groups by a range of characteristics which are hinted at above.

"Evolvers"

As their title suggests, evolvers share elements of both the other groups.

Although the above is a simplified representation of Honeywill's detailed study, for present purposes this data may become more relevant when the Ministry chooses future strategies for reaching classes of consumers with very distinct characteristics and expectations. Although "Traditionals" currently make up more than half of the population, "I-Cons" are increasing in number and in Australia account for nearly half of discretionary consumer spending. It is also worth noting that the New Zealand experience of an ageing, culturally diverse population, coupled with strong technologically savvy consumers, is not unique.

[5] National Fair Trading Futures Workshop, held in Brisbane 14 March 2002. More information is available at the website of the Centre: www.customerstrategy.com.au.

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