Pet owner dependence on the veterinarian is a significant indicator of spending behavior.

In January 2009, Trone^® reported the results of a consumer study that identified six unique segments of pet owners. These attitudinally and behaviorally based groups displayed distinctly different relationships with their pets which were reflected in their pet-related spending.

As a follow-up, in December 2009, Trone launched another pet owner survey utilizing our opinions@trone database and infrastructure. This study, while confirming the findings of the previous work, uncovered interesting new information about the relationship between pet owners and veterinarians. The degree to which pet owners are dependent on the veterinarian is also a strong predictor of spending behaviors. And, it is not limited to spending exclusively done in the clinic.

Of the 945 pet owners surveyed (559 dog owners and 386 cat owners), 43% of dog and 34% of cat owners were deemed to be veterinarian dependent. Many of the behaviors distinguishing this group were definitional. As you would expect, owners who are veterinarian dependent are appreciably more likely to take their pet to the veterinarian two or more times a year. And they expect to spend significantly more on veterinary services over the lifetime of their pet than do their non-vet-dependent counterparts.

Veterinarian-dependent pet owners and their non-dependent counterparts share many common attributes.

Not surprisingly, dependence on a veterinarian is somewhat income driven. The vet-dependent group was 72% more likely to have an HHI over $75,000. But, households with incomes greater than $75,000 were less than 23% of the sample. Trust in the veterinarian and concern for the pet are even less likely than income to explain the dependence. 95% of the vet-dependent audience indicated a high level of trust in their veterinarian’s recommendations which was mirrored by the 90% of non-vet-dependent respondents who also trust their vet. The study included a number of measures of concern about their pets. On most of the questions there were only marginal differences demonstrated by the two groups. For example, when asked about the importance of protecting their pets from common parasites (fleas, ticks and heartworm), agreement numbers didn’t vary as much as 10% for the two groups.

The level of engagement differences between veterinarian-dependent and non-vet-dependent pet owners is evident in a range of behaviors.

While both groups have modified their pet-related spending as a result of the economic downturn, the veterinarian-dependent group has widened the spending gap. They’ve reduced their already higher spending levels less than the non-vet-dependent segment.

The vet-dependent group demonstrates a higher degree of product brand loyalty. They are 22% more likely to agree with the statement that they shop the stores that carry the brands they like rather than buying the brands that the store they like carries than their non-vet-dependent counterparts. As a result of this attitude, they are much more likely to shop the breadth of available outlets, including online. The sole exception is mass merchants which attract more non-vet-dependent customers in all categories from food (77% v. 56%) to flea and tick medications (43% v. 22%).

Veterinarian-dependent owners are also much more likely to have consulted with their veterinarian on purchases made outside the clinic. For example, they are more than three times as likely to have sought input on non-prescription food choices. And, they are more likely to act on the input they receive. 62% of vet-dependent pet owners have changed a basic product (i.e. food, shampoo, flea/tick treatment, etc.) in the past two years based on advice they received from their vet while only 11% of the non-vet-dependent group has taken such actions.

The challenge for marketers is to influence the influencer.

The challenge for marketers is leveraging the power of this highly influential veterinary group. In some cases the need is obvious. If a product is sold through the vet channel, some degree of engagement is necessary to achieve shelf space. But, taking the relationship beyond the basics and making your brand the preferred and hopefully, recommended choice is key. For products not sold within the veterinary channel the challenge is even greater. How do you engage the veterinarian to speak well of your brand? Must you rely on the pet owner to broach the subject or can your product interject itself into the conversation via the veterinarian? To answer these and the myriad of other questions that arise requires a unique understanding of the brand, the target, the influencer and the environment in which they interact.

If you are interested in connecting with pet owners, email Kimberly, our pet team lead.

Find out more about how we talk to pet owners»

Technology is changing faster than people can grasp. You almost cannot go a day without hearing about online destinations such as Facebook, MySpace or Twitter or hearing about mobile devices and the 3G network. Seemingly, it’s all too easy for older generations to say, “Oh, that’s for the young people.” But actually technology adaptation and someone’s online behavior have very little to do with age.

Trone, Inc. recently (December 2008) conducted a nationwide survey of over 2,600 consumers about their attitudes and behaviors regarding internet usage, social media and mobile devices. Trone also wanted to understand people’s likelihood of actively participating on emerging Web 2.0 platforms and whether or not they were contributors or consumers of information posted on blogs, wikis, social bookmarking and networking.

Through the research, Trone identified six segments of users online. Surprising to some, the segments are fairly independent demographic characteristics of age, children at home, ethnicity, education and income level and more identifiable by behaviors and interactions with technology. The segments are defined as:

• Social Expressionists (18%)
• Technological Drivers (10%)
• Savvy Users (15%)
• Convenient Users (18%)
• Information Supplementers (20%)
• Technological Minimalists (19%)

The most notable insight out of the segmentation is that online behaviors parallel an individual’s offline world. For instance, the Social Expressionists were identified through psychographic data as the most extroverted segment. 50% of this group was a member of one or more social networks that they visit multiple times a week. The prime reason this group uses technology is to connect and maintain their social life through activities such as texting, email, social networking and photo sharing.

Social Expressionists are a contrast to the Technological Drivers, who are the most active online, especially with emerging technologies. Offline, Technological Drivers have a general thirst for new information and the exchange of information. Web 2.0-friendly properties allow this to happen on a grander scale. This segment helps create conversation and dialogue online through blogs, wikis, bookmarking, virtual communities and message boards. They also have a greater likelihood to establish and maintain relationships with individuals solely online.

As we move into 2009 and further into the digital age, marketers must become even more diligent at evolving their traditional segments as media becomes even more fragmented. The industry must also accept that we can no longer define our target as one generalization, but rather micro-targets that shape our messaging, media spend and tactics to create brand connections.

Why consumer-brand relationships are at risk.

It’s no secret the economy is in bad shape. With the bailouts, the unemployment news and falling stock markets, consumers hear about it everywhere. So, it’s also no surprise that consumers are reacting. Even consumers who haven’t been directly affected are thinking twice about what they really need and what they can do without. But, just how bad is it? What are they really thinking about the economy? How do they plan to spend their money? Do brands still matter? These are just a few of the questions we asked in a recent Trone Brand Connections survey of 3,300 consumers.

The study found that most everyone is looking to make spending cuts somewhere because they aren’t feeling good about the future.

• 93% believe it will take a year or more to repair our ailing economy
• 64% expect it to take three or more years to return to our former levels of prosperity

Loss of trust

Fifty-five percent of respondents indicate that the current situation has significantly altered their view of the federal government, while banks (25%) and non-banking financial institutions (33%) have also seen their reputations tarnished.

Big ticket items: Hold off or downgrade

The spending cuts will hit all over. For many, it will be deferring big expenditures. Car buyers may move from an Accord to a Civic or from Honda to Hyundai. Fifty-seven percent of the respondents who had planned to acquire a car or truck plan to delay that purchase beyond 2009. Of those still in the market, 48% are looking for something less expensive.

Cars are not the only category affected. Similar repercussions will be felt in other high-ticket categories from flat panel TVs and computers to home repair and remodeling. Vacation spending will also be curtailed. In many cases (55%), that will mean spending more leisure time at home, but it will also result in 41% of vacationers staying in less-expensive hotel properties and 59% eating at cheaper restaurants.

Everyday behavior changes

Of those hardest hit by the economy, the focus will be on day-to-day spending and familiar brand names may be the first to get the axe. Adults, particularly moms, plan to cut spending on themselves. To accomplish this, 73% will shop less-expensive retailers and 68% will switch to less-preferred brands. Expenditures for children will also be impacted. The willingness to change brand affiliations will be evidenced here as well, at both the retailer (80%) and product levels (77%). Even the family pet will be affected. Seventy percent of respondents indicated they will reduce vet visits and 73% will buy products on sale even though they are not preferred brands.

Is this as bad as it’s going to get?

No one knows for sure, but the situation is likely to get worse before it gets better. A recent release by the National Association of Realtors reported that 75% of U.S. homes have declined in value in the past year, while only 45% of the survey respondents indicated their property value had diminished. What happens when consumers fully appreciate the severity of the situation?

Can you weather the storm?

The implications for marketers is significant. Marketing is often looked at as a dispensable luxury, but a down economy can often be a great opportunity. One brand’s recession is another brand’s chance to make an impression. For a low-end brand, it’s a chance to prove themselves. For high-end and established brands, it’s a chance to live up to the full potential of their brand promise. Not everyone will think this way. There will be more big brands and businesses falling by the wayside. But a marketer that plays the right cards will not only survive this recession, they’ll be better brands for it.