Are Canadians currently spending less because of higher gas prices?
1 November 2005
Synovate poll reveals that gas prices are negatively affecting consumer behavior
TORONTO, ONTARIO — A vast majority of Canadians have changed their consumer habits because of higher gas prices. According to a new survey by leading global market research firm Synovate, 82% of respondents who own or lease a vehicle have taken some action as a result of the recent increase in gas prices.
The top action taken was "filling up gas when I see a lower price even if the tank is not empty," according to the Synovate e.Nation poll. Consumers also indicated that they "Go shopping less frequently" and have "Cut down on 'non-essential' activities such as entertainment, dining out, etc." Of importance for retailers, 22% of those polled claim to be checking store flyers for sale items more frequently.
"Another interesting finding was that the impact on consumer behavior is greater outside big cities," said Robin Brown, Senior Vice President, Synovate Canada. Brown attributes this behavior to larger cities having better public transportation, where people have the option to not use their cars so often. Another factor may be that urban residents tend to have more disposable income than residents of smaller cities and rural areas.
According to the study, the proportion of respondents who declared that they go shopping less frequently as a result of the increase in gas prices was significantly higher among residents of small to mid-size cities (10,000 to 99,999 inhabitants) and small towns/rural areas (defined as less than 10,000 inhabitants). In addition, in small town/rural areas the proportion of respondents who were "cutting down on 'non-essential' activities such as entertainment, dining out, etc." was significantly higher. Areas with lower population density (99,999 inhabitants or less) have no or very limited public transportation systems , therefore their residents are more dependent on cars and more likely to feel the impact of the increase in gas prices.
The research also revealed that in English Canada respondents tended to change their behavior more as a result of higher gas prices compared to French Canadians (3.09 actions in English Canada versus 2.17 in French Canada).
Synovate interviewed 944 respondents who own a car in Canada through eNation – Synovate's national online research service – to generate the results of this study.
Contact(s) for this press release
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Jennifer Chhatlani
Vice President, Marketing & Communications |
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222 South Riverside Plaza |
Tel: +1 312 526 4359 |
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Robin Brown
Senior Vice President Canada |
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480 University Avenue |
Tel: +1-416-964-6262 ext.113 |
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Alain Ferron
General Manager |
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1200 McGill College |
Tel: +1-514-875-7570 ext. 254 |
About eNation
Interviews are conducted online every week from Thursday to Monday. Results are issued by end of business day on Wednesday. Each e.Nation survey is conducted on secure sites only allowing respondents on Synovate's panel access to the interview site.
About Synovate
Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 6,000 staff across 62 countries.
For more information on Synovate visit www.synovate.com.