ThinkNow Pulse TM 2019 TOTAL MARKET CONSUMER SENTIMENT ECONOMIC OUTLOOK EMPLOYMENT PURCHASES with trend data from previous years
What is it? Methodology ThinkNow Pulse is a national survey that examines the consumer sentiment of Americans. The study looks at the market as a whole and by key race/ethnic segments. Results from 2018 are compared to 2017, 2016 and 2015. Survey Method Online via ThinkNow Research s Omnibus Study Field Timing December, 2018 Regional Coverage National Screening Criteria 18-64 years of age Base Sizes 507 Hispanics 258 Non-Hispanic Whites 257 African Americans 258 Asian Americans 1,280 Total 2
Who We Are An authority on creating and managing research products that help clients gather insights about rapidly changing consumer segments. Conduct online, in-person and telephone research. Research experience specifically in the Hispanic, African American, Asian and Total markets. Experience in hard-to reach demographic sub-groups. Only full-service market research company that owns & operates an inhouse Hispanic panel. Servicing Fortune 500 clients, ad agencies, nonprofits and other market research companies. 3
ONLINE MARKET RESEARCH COMMUNITIES Our Services QUANTITATIVE QUALITATIVE MIXED MODE CONCEPT AND COPY TESTING ADVERTISING EFFECTIVENESS ONLINE PANEL BUILDING WEBSITE USABILITY STUDIES OMNIBUS SURVEYS ATTITUDES & USAGE BRAND TRACKING ONLINE PANEL INTERCEPTS PHONE PRODUCT TESTING ONLINE & OFFLINE QUALITATIVE 4
ThinkNow Pulse Results
Key Findings Similar to last year s survey, approximately one-third of Americans 18-64 years of age say their household financial situation improved during the past year (2018). Nearly 20% say it worsened. Among the larger race/ethnic segments, Non-Hispanic Whites were the most likely to say their household income situation improved from one year ago. The results of ThinkNow s Pulse Study indicate that consumer sentiment has not changed significantly from one year ago. Approximately half of Americans feel their financial situation will improve in 2019. This is also consistent with our survey from one year ago. African-Americans hold the most positive outlook for their finances in 2019. As in our previous survey, roughly half of Americans feel the US economy is growing, at least slowly. The majority predict the economy will either continue growing or stay the same in 2019. The study shows that over the past two years (2017-2018), fewer Americans have experienced a job loss or a reduction of works hours compared to 2015-2016. The 37% who approve of the job the president is doing hold a more favorable opinion of the US economy and their outlook on 2019 is more positive compared to Americans in general. Despite mostly positive outlooks for the coming year, some concerns are still held by some, mainly of rising prices and the availability of jobs. 6
As in our 2017 survey, approximately one-third of Americans say their household financial situation improved during the past year. There were no significant changes over the last two years. Recent Trends in Household Income Total Market Thinking of all of the sources of income that contribute to your household, compared to this same time last year would you say your household financial situation has? Base: Total Market - 2015 (n=1285), 2016 (n=1250), 2017 (n=1270), 2018 (n=1280) 33% 42% 39% 38% 33% 35% 41% 39% 22% 20% 19% 19% Improved Stayed the same Worsened 2015 2016 2017 2018 Up/down arrows indicate statistically significant difference from previous year (95% confidence 7
Non-Hispanic Whites are the segment most likely to say that their household income situation improved from one year ago. Fewer than 30% of Hispanics said it improved, the lowest reported over the past four years. 2018 27% Hispanic (A) White (B) African American (C) Asian (D) 45% 38% 39% 31% Recent Trends in Household Income By Race/Ethnic Segment 32% 38% 41% 22% 17% 25% 19% Thinking of all of the sources of income that contribute to your household, compared to this same time last year would you say your household financial situation has? 2018 Base: Hispanics (n=507), Whites (n=258), African Americans (n=257), Asians (n=258) Up/down arrows indicate statistically significant difference from previous year (95% confidence) Year Results Improved Stayed the same Worsened 2017 35% 33% 32% 32% 38% 41% 41% 44% 17% 20% 18% 15% 2016 43% 39% 38% 32% 34% 41% 36% 50% 19% 18% 19% 14% 2015 35% 33% 40% 35% 41% 41% 38% 45% 19% 22% 17% 16% 8
Over the past two years (2017-2018), fewer Americans have experienced a job loss or a reduction of works hours compared to 2015-2016. Changes In Employment Total Market 54% 56% 49% 53% During the past year, have you or someone in your family had to deal with any of the following? Base: Total Market - 2015 (n=1285), 2016 (n=1250), 23% 24% 22% 20% 20% 15% 17% 15% 15% 11% 12% 10% 2017 (n=1270), 2018 (n=1280) Up/down arrows indicate statistically significant difference from previous year (95% confidence Lost a job Work hours wew reduced Work salary was reduced None of these 2015 2016 2017 2018 9
In 2018, there were no significant changes in employment across the four major race/ethnic segments. Hispanics and African-Americans are the most likely to have lost a job during the past year. Changes In Employment By Race/Ethnicity Year Results 2018 24% Hispanic (A) White (B) African American (C) Asian (D) 21% 18% 18% 16% 14% 13% 13% 13% 7% 15% 11% 47% 58% 42% 51% During the past year, have you or someone in your family had to deal with any of the following? 2018-Base: Hispanics (n=507), Whites (n=258), African Americans (n=257), Asians (n=258) Lost a job Work hours were reduced Work salary was reduced None of these 2017 19% 13% 18% 15% 17% 15% 15% 11% 9% 9% 15% 12% 50% 60% 45% 58% 2016 25% 21% 30% 16% 24% 19% 21% 15% 18% 22% 13% 14% 45% 52% 49% 61% 2015 27% 20% 28% 16% 25% 21% 18% 17% 15% 10% 14% 17% 45% 59% 51% 56%. 10
Financial outlook for the coming year has remained relatively unchanged since 2015. Consistent with past years, about half of Americans feel their financial situation will improve in the upcoming year. Outlook For Household Finances Total Market Thinking of your own personal and your family finances for (year), which of the following would you say best describes your feelings towards this upcoming year? 50% 50% 46% 48% Base: Total Market -2015 (n=1285), 2016 (n=1250), 2017 (n=1270), 2018 (n=1280) 33% 34% 32% 32% 11% 10% 9% 10% Better than previous year About the same Worse than previous year 2015 2016 2017 2018 11
Asian-Americans are less optimistic about their household finances in the upcoming year. Outlook For Household Finances By Race/Ethnicity 46% 50% 57% Hispanic (A) White (B) African American (C) Asian (D) Thinking of your own personal and your family finances for (year), which of the following would you say best describes your feelings towards this upcoming year? 2018 36% 36% 31% 33% 23% 10% 9% 8% 16% 2018 Base: Hispanics (n=500), Whites (n=255), African Americans (n=257), Asians (n=258) Up/down arrows indicate statistically significant difference from previous year (95% confidence) Results Better than 2017 About the same as 2017 Worse than 2017 2017 50% 45% 50% 45% 28% 35% 25% 28% 7% 9% 10% 14% 2016 56% 44% 63% 47% 29% 42% 21% 39% 8% 9% 8% 7% 2015 57% 45% 61% 42% 23% 38% 26% 37% 12% 12% 6% 12% 12
. As in past years, roughly half of Americans feel the US economy is growing, at least slowly Perception of U.S. Economy Total Market When you think about America's economy today, do you think it is... Base: Total Market - 2015 (n=1285), 2016 (n=1250), 2018: 51% Growing rapidly/slowly 2017 (n=1270), 2018 (n=1280) Up/down arrows indicate statistically significant difference from previous year (95% confidence 11% 18% 16% 20% 39% 38% 34% 31% 24% 23% 21% 23% 16% 10% 11% 10% 4% 3% 6% 5% Growing rapidaly Growing slowly Stagnating In a recession In a depression 2015 2016 2017 2018 13
. In general, perception of the US economy is largely unchanged across race/ethnicity 23% of Whites believe the economy is growing rapidly. This is the highest share among this group during the past four years. Perception of U.S. Economy By Race/Ethnicity When you think about America's economy today, do you think it is... Hispanic (A) White (B) African American (C) Asian (D) 2018 Base: Hispanics (n=500), Whites (n=255), African Americans (n=257), Asians (n=258) Year Results 2018 17% 23% 18% 15% 28% 33% 35% 26% 26% 27% 22% 22% 10% 10% 8% 9% 8% 6% 4% Note: Don t know / No opinion not shown. 4% Up/down arrows indicate statistically significant difference from previous year (95% confidence Growing rapidly Growing slowly Stagnating In a recession In a depression 2017 17% 15% 19% 15% 32% 36% 25% 36% 23% 20% 24% 19% 9% 13% 8% 14% 5% 7% 8% 1% 2016 19% 17% 16% 10% 38% 42% 35% 42% 25% 20% 25% 29% 9% 11% 11% 7% 3% 3% 6% 3% 2015 14% 7% 14% 9% 43% 38% 48% 45% 18% 28% 18% 24% 11% 18% 11% 10% 6% 2% 4% 2% 41% 14
As in previous years, the majority of Americans believe the U.S. economy will either improve or stay the same in the coming year. There has been a slow but steady rise in those who feel the economy will worsen in the coming year. Outlook for US Economy Total Market Thinking about the U.S. economy in general, which of the following would you say best describes your feelings about where things are headed over the next year? Base: Total Market -2015 (n=1285), 2016 (n=1250), 2017 (n=1270), 2018 (n=1280) 41% 35% 34% 33% 33% 26% 23% 26% 26% 27% 22% 23% 11% 10% 16% 13% Up/down arrows indicate statistically significant difference from previous year (95% confidence) Better in coming year About the same in the coming year Worse in the comig year Not sure 2015 2016 2017 2018 41% 15
The outlook for the US economy in the upcoming year is largely the same as it was one year ago across the four segments. Outlook for US Economy By Race/Ethnicity Hispanic (A) White (B) African American (C) Asian (D) Thinking about the U.S. economy in general, which of the following would you say best describes your feelings about where things are headed over the next year? 2018 Base: Hispanics (n=500), Whites (n=255), African Americans (n=257), Asians (n=258) Year Results 2018 34% 35% 29% 27% 28% 29% 29% 29% 27% 25% 26% 23% 12% 13% 13% 10% Up/down arrows indicate statistically significant difference from previous year (95% confidence Better in 2018 About the same in 2018 Worse in 2018 Not sure 2017 31% 36% 26% 34% 27% 21% 25% 24% 24% 27% 23% 23% 16% 15% 23% 16% 2016 44% 47% 23% 37% 24% 26% 25% 26% 21% 20% 34% 25% 10% 6% 17% 12% 2015 43% 32% 41% 34% 31% 31% 30% 37% 18% 27% 13% 19% 8% 8% 15% 9% 16
Planned purchases remained statistically unchanged from one year ago. Consumers planning to purchase a home has remained at roughly 20% over past four years. Purchases Planned for Next 12 Months Total Market Thinking about major purchases that people might buy for themselves or their family, are you planning to purchase any of the following in the next 12 months? 2015 2016 2017 2018 2018 Base: Hispanics (n=500), Whites (n=255), African Americans (n=257), Asians (n=258) Up/down arrows indicate statistically significant difference from previous year (95% confidence 37% 41% 41% 41% 37% 35% 38% 35% 30% 33% 31% 27% 41% 43% 39% 42% 28% 32% 28% 28% 35% 42% 35% 37% 19% 22% 23% 21% Smart phone New home electronics New tablet New computer or laptop Large kitchen appliance Brand new car or truck Home or Condominium 17
The economic issues of greatest concern to Americans are rising prices and availability of jobs. Mean Rank (1-7) Rising prices Economic Issues of Greatest Concern (2018 Survey Only) Total Market Total Market 3.2 If you were to rank the following economic issues in our economy as a whole where 1 is the issue you are currently most concerned about and 5 equals the one you are least concerned about, how would you rank the following? Availability of jobs 3.5 Base: 2018 (n=1280) Housing/Rental market 3.9 National budget deficit 3.9 Financial markets 3.9 Trade war 4.3 Rise of Artificial intelligence 5.2 18
Given the current political climate, nearly as many Americans have a pessimistic outlook for the coming year as do an optimistic outlook. This sentiment remained unchanged from one year ago. Outlook for Coming Year (Given Political Climate) What affect does the current political climate have on your personal outlook for the upcoming year? 41% 43% 36% 35% Base: Total Market - 2017 (n=1270), 2018 (n=1280) B 23% 23% Much/Somewhat MORE Optimistic No affect Much/Somewhat LESS Optimistic 2017 2018 19
In 2018, African American and Whites expressed the most optimism for the coming year, despite the current political climate. Outlook for Coming Year (Given Political Climate) Hispanic (A) White (B) African American (C) Asian (D) What affect does the current political climate have on your personal outlook for the upcoming year? Base: Hispanics (n=500), Whites (n=255), African Americans (n=257), Asians (n=258) 42% 45% 43% 39% 37% 34% 32% 39% B 22% 22% 24% 22% Much/Somewhat MORE Optimistic No affect Much/Somewhat LESS Optimistic 2017 40% 40% 44% 38% 23% 23% 24% 27% 36% 37% 32% 35% 20
The 37% who approve of the job the president is doing hold a more favorable opinion of the US economy and their outlook on 2019 is more positive compared to Americans in general. They are also more likely to have had an improvement in their household finances during the past year. Sentiment Among Those Who Approve of President President Approval Approve 37% Total Market (A) Approve of President (B) Disapprove 52% No opinion 11% 79% A 74% A Base: Total Market (n=1280), Approve of President (n=346) 57% A B 51% 43% 35% Household finances improved during past year Believe US economy is growing Haves a more positive personal outlook on 2019, given current political climate 21
Demographics
Sample Profile 2018 Hispanics Whites African- Americans Asians Male 51% 50% 48% 47% Female 49% 50% 52% 53% Hispanics White African- American Asian Born in the U.S. 60% 94% 93% 44% Moved here 40% 6% 7% 56% Age 18 to 34 45% 34% 41% 39% 35 to 64 55% 66% 59% 60% Mean age 37 42 39 40 Household Income Under $50,000 (Net) 49% 33% 56% 27% $50K $99K (Net) 28% 32% 24% 26% $100K+ (Net) 15% 31% 13% 37% Median income ($000) $46 $65 $38 $77 Census Region Northeast 14% 19% 17% 21% Midwest 9% 26% 17% 12% South 37% 35% 57% 23% West 40% 20% 9% 44% Educational Attainment High school grad/ged 37% 23% 30% 16% Some college/aa/ trade/technical school (NET) Bachelor's degree or higher (NET) 35% 34% 42% 26% 27% 43% 28% 57% 2018 Base: Hispanics (n=500), Whites (n=255), African Americans (n=257), Asians (n=258) 23
Sample Profile 2018 Hispanics Language Spoken at Home Spanish dominant 35% Spanish and English equally 35% English dominant 30% Country of Origin Mexican 63% Puerto Rican 14% South American 7% Central American 5% Cuban 4% Dominican 4% Acculturation Less Acculturated 23% Bicultural 48% More Acculturated 29% 2018 Base: Hispanics (n=500) 24