MBA forecasts gains in home sales
Arlington, Va. — During the Home Improvement Research Institute Spring Conference, the Mortgage Bankers Association (MBA) forecast a 2.3% gain in 2012 existing home sales.
In a “Mortgage Market Outlook” presentation, Mike Fratantoni, VP of single-family research for the MBA pointed to the 2012 forecast of 4.391 million existing home sales, up 2.3% from 2010. The forecast for 2013 is for 4.646 million.
Fratantoni explained to the conference attendees, mostly home improvement research and marketing professionals, that the U.S. economy seemed to be on the path to a self-sustaining recovery, an assessment he qualified with a “but” and an “and.”
“The ‘but’ is that the U.S. economy is more impacted by global events than we ever have been,” Fratantoni said. Greece and pain cause concern. But what really keeps him up at night is the idea of “difficulties with Iran and the potential spike in oil prices.”
The MBA also forecast 324,000 new home sales, up from 303,000 in 2010. For 2013, the new home sales forecast is for 395,000.
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Obit: Bob Bukowsky of Ideal Industries
Electrical tools manufacturer Ideal Industries has announced the passing of Bob Bukowsky, 71, its former VP sales.
Bukowsky started his career with Ideal as national sales manager and in 1993 was promoted to VP sales. He successfully managed the Ideal sales team and built a network of distributors across the United States. During his tenure with Ideal, Bukowsky achieved many milestones, including the development of several distributor development programs, development of Ideal’s territory growth program, and the successful transition of the company’s position in the market from primarily selling wire connectors and hand tools into a supplier of a diverse range of installation and testing solutions across several markets, including construction, maintenance, data communications and original equipment manufacturing industries.
Bukowsky served as chair of the National Association of Electrical Distributors (NAED) in 2008 and was active in several other professional organizations.
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Most shoppers make impulse purchases
A study looking at consumer shopping behavior found that nine out of ten shoppers purchase something not on their intended list, according to The Integer Group and M/A/R/C Research.
Among shoppers who purchase off-list items, 66% say the reason was a sale or promotion, 30% say they found a coupon, and 23% say they simply wanted to pamper themselves, The Checkout study found.
"Our data shows that 6% of off-list shoppers purchase an additional 1-3 items," said Craig Elston, senior VP, Integer. "This shows that if you reach a particular shopper at the right moment with the right message — for example, using in-store signage to play into their desire to pamper themselves— it can end with that item being added to their basket."
When it comes to list-making, 61% of shoppers are influenced primarily by the brand of product they currently use, 57% report that coupons influence their list, and 56% are swayed by store ads or circulars. However, when shoppers are making lists, they typically do not write down brand names of a product, they write the product type. This means that although they may have their brand of choice in mind, there are factors that can influence a shopper to select one brand of a product over the other, telling marketers they need not worry that a shopping list excludes certain brands or creates a barrier to purchase.
Data for The Checkout comes from a national survey conducted by Integer and M/A/R/C where consumers are asked about their shopping attitudes, shopping behaviors, and economic outlook. Topics range from criteria shoppers use to select retailers, to which in-store stimulus is most likely to drive purchase, to factors that might lead shoppers to leave an aisle empty-handed. The Checkout is available for download at Integer’s blog www.ShopperCulture.com.
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