RISMEDIA, Oct. 16, 2007-TNS, a leader in market insight and information, recently released highlights from a new survey focused on consumer reaction to the subprime mortgage crisis in the United States, including consumer spending practices, the parties responsible and the severity of the crisis. The research was conducted on the heels of the Federal Reserve’s most recent interest rate cut.
Among the key survey findings are the following:
- One-third of adult Americans plan to cut back on spending because of the effects of the subprime mortgage crisis, with consumers citing major cutbacks in home improvement/major furniture purchases, travel for leisure/vacations, and entertainment (e.g. movies, sports and concerts) at 17% /technology purchases closely follows at 14%
- Those with children under 18 years of age are significantly more likely to cut back on travel for leisure/vacations (21%) and home improvements (23%); only two percent of the population plans to cut back on their children’s education.
- When laying blame, seven out of 10 Americans charge subprime mortgage lenders with creating the crisis, followed by the real estate/housing industry at 60%, the subprime mortgage borrowers at 58% and investors at 57%
Research shows that 76% of consumers believe that the subprime mortgage crisis is ‘just as serious’ or ‘more serious’ than the dot-com crisis, however, there are other pressing issues on their minds. Another terrorist attack, the war in Iraq, and the U.S. healthcare system were ranked as Americans’ top three concerns ahead of the subprime mortgage crisis which came in 6th place.
While there certainly are other worries on consumers’ minds, these results show the subprime mortgage crisis will impact spending habits,” said Bob Neuhaus, executive vice president, Financial Services, TNS North America. “Coupled with the fact many people blame lenders, it is an opportune time for financial institutions to recalibrate their brand image and client interactions by tailoring services to address their customers’ financial anxieties.”
The study is based on a representative national sample of 2,500 people aged 18+ in the TNS 6th Dimension Access Panel. The Internet-based survey was conducted September 20th through September 23rd 2007.
For more information, visit http://www.tns-us.com.
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