People Fear a Global Depression Says New TNS Study

NEW YORK, Jan. 14 /PRNewswire/ -- TNS, the global market insight and information group, has today released the results of its Financial Crisis study, showing that the majority of consumers across four countries expect a global depression. The study looks at how the global financial crisis is affecting customers in four key countries; the UK, France, Germany and the US. It has specifically investigated how people are changing their behaviors and attitudes towards financial institutions and financial decisions.

One of the most significant findings of the new report confirms that a majority of respondents across all countries believe that the crisis will continue for at least another one or two years, this figure is 59 percent for the UK, 57 percent in the US, 49 percent for Germany and 56 percent for France. More concerning is that the majority of people think the problems in the economy will soon lead to a 'Global Depression' -- approximately 72 percent in the UK, 72 percent in France, 66 percent in Germany but falling to 60 percent of respondents in the US who think that this is the case. When it comes to issues around the depression in individual countries even more people are concerned, with nearly three quarters saying they agree that this might be a side effect of the turmoil. Again the UK is the most concerned about the threat of depression in their own country at 81 percent, France 74 percent and 66 percent in Germany and the US.

"The most concerning result from our study is that the majority of consumers are expecting a global depression," said Bob Neuhaus, Executive Vice President, Financial Services for TNS in the United States. "Consumer expectations for the economy are plummeting and this is clearly reflected in US households' deep concerns about job prospects, financial security and even their ability to maintain their homes."

Other key results from the study include:

-- Only a fifth of respondents in the US (18 percent) and France (18 percent) believe that the crisis will have no direct effect on their personal situation. This is much higher in the UK (26 percent) and even higher in Germany (32 percent).

-- The US (33 percent) and the UK (29 percent) respondents are the most in fear of losing their jobs. France and Germany are more relaxed (18 percent and 19 percent respectively).

-- The fear of losing one's house is greatest in the US (mentioned by 11 percent).

-- Four out of ten people will not make any changes to their financial portfolio. 47 percent in Germany, 45 percent in France, 38 percent in US and 37 percent in UK.

-- In response to the financial crisis less than 10 percent of people say that they will only buy or plan to buy financial products if they are recommended to be crisis proof -- 10 percent in France, 6 percent in UK, 6 percent in Germany and 7 percent in US.

"We know from previous experience that in grave times, people's attitudes towards financial brands and financial decisions can change dramatically," Neuhaus states. This is heightened if a brand has weaknesses in its emotional ties with its customers. If someone is emotionally tied to a brand they will stick with it when times are hard, if not then they can often be tempted by better offers that come along. We wanted to look deeper into consumer attitudes, their outlooks and their feelings about the future, to get a better idea of how financial institutions can best address the needs of their customers at a time when they need them most."

TNS Omnibus online study of 4239 consumers in the UK, US, France and Germany aged 16-64 during December 2008.

About TNS

TNS is a global market information and insight group.

Its strategic goal is to be recognized as the global leader in delivering value-added information and insights that help its clients make more effective business decisions.

TNS delivers innovative thinking and excellent service across a network of 80 countries. Working in partnership with clients, TNS provides high-quality information, analysis and insight that improves understanding of consumer behavior.

TNS is the world's leading provider of customized services, combining sector knowledge with expertise in the areas of Product Development & Innovation, Brand & Communications, Stakeholder Management and Retail & Shopper. TNS is a major supplier of consumer panel, media intelligence and audience measurement services.

    TNS is the sixth sense of business(TM).

    http://www.tns-us.com

The Kantar Group

The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies -- including the recently-acquired TNS -- the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies. The Kantar Group is a wholly-owned subsidiary of WPP Group plc. For further information, please visit http://www.kantargrouptns.com