Consumer Perceptions Of Pawn Shops

And in at the moment’s risky financial setting, they could be a saving grace to people who find themselves in want of fast money however have poor or no credit score, no checking account, or no bank card. Nevertheless, pawn outlets will not be proof against the results of the financial system, with stiff competitors from companies like payday loans and stringent authorities laws. Most notably, they’ve ongoing picture issues, a lot of which is attributed to how they’re portrayed within the media and films (e. . Pulp Fiction).

Extra lately, a extremely profitable actuality tv present set in a pawn store has elevated constructive visibility for the trade and the Nationwide Pawnbrokers Affiliation (NAP) is hoping to construct off of that momentum by endeavor a brand new promotional marketing campaign. The marketing campaign would have two targets: to enhance the picture of pawn outlets and to get extra folks to step foot into the shops. In late summer season of 2010, the NAP sought the help of a Communication Analysis masters-level class on the college of SST.

Thomas in Minneapolis, MN.With Help from the category, the NAP would profit from the findings of final, small, qualitative analysis research. The data collected could possibly be helpful to the NAP in creating messaging and positioning methods for a nationwide marketing campaign. This report is a results of one of many qualitative analysis research carried out.

The intent of our research was to not give attention to current pawn store clients, however quite to gauge basic consciousness and opinions of pawn outlets and their relevance in peoples’ lives. We have been conscious that our research pattern would probably not replicate the typical pawn store buyer.The Question Assignment we had was whether or not our research pattern would signify potential awn store clients. Our research targeted on information, expertise and perceptions of pawn outlets, in addition to lending and buying habits. In our Assessment, we discovered that folks didn’t fully perceive the providers and worth that pawn outlets can supply. Moreover, folks didn’t take into account them as an possibility for short-term loans, both as a result of they weren’t conscious of the service or they weren’t thought-about counterintuitive as handy.Folks did take into account pawn outlets as a retail buying possibility for bargaining and getting good offers.

As for basic opinions, there was lots of indifference. Folks don’t appear to care to make use of them; nonetheless, they aren’t prepared to ignore them. This offered a possible alternative to extend consciousness, tackle frequent misconceptions and alter opinions. We concluded that the one approach to do these is to shut the schooling hole. Pawn outlets want to higher promote their providers and discover methods to teach customers. Furthermore, pawnbrokers ought to take into account putting an elevated emphasis on retail alternatives.As short-term loans are the first driver of income for many outlets, we additionally suggest that they proceed offering this service and enhance upon it if attainable.

Analysis Downside Our workforce expanded upon the cost supplied by the Nationwide Pawnbrokers Affiliation (NAP) and developed the next analysis downside: The unfavourable notion of pawn outlets are protecting customers from utilizing them for lending and/or retail. The aim of our analysis undertaking was that of understanding. We needed to be taught extra about folks’s habits, information and expertise with pawn outlets and the way that influences their perceptions.Methodology We began our analysis with a preliminary literature Assessment. We reviewed the NAP web sites, participated in a convention name with NAP employees, and seen a beforehand accomplished research about pawn store customers. Up up to now, the Nap’s most dependable supply for understanding pawn store clients was a research finished in 1998 by the Credit score Analysis Heart College of Enterprise at Georgetown College. The research, referred to as “Pawnbrokers within the U.

S. : A Profile of Prospects,” supplied an in-depth take a look at the operations of pawn outlets and the traits of their clients.Whereas the research supplies useful perception, it’s 12 years outdated. We additionally created an inventory of media by which we had seen pawn outlets portrayed, together with the fact present Pawn Stars and the film pulp Fiction. From our preliminary analysis, together with the 1998 research and 1 999 Census SHIP information, we have been in a position to be taught the traits of the typical pawn buyer. ; Age 36 ; Family revenue Of $29,00zero ; All ethnicities ; 82 p.c have a highschool diploma or equal ; Most are UN-banked or under-banked.We additionally discovered about frequent misperceptionsmisconceptions, which embody: ;Pawn outlets are in unhealthy elements of city.

; Pawn outlets promote stolen items. ; Most individuals assume pawning is promoting – they don’t perceive the mortgage. Idea. ; Getting a pawn mortgage will harm your credit score rating. Using pawn outlets contributed to the present monetary disaster. ; Pawn outlets decrease property values within the neighborhoods they’re in. Another key factors that got here out of our convention name with the NAP included: ; The largest problem for pawn outlets is getting clients within the door.

Most pawn loans are for surprising bills, often by folks dwelling paycheck- to-paycheck. ; Widespread competitors for pawn outlets within the lending companies are payday mortgage shops and money for gold companies. Competitors within the retail enterprise embody Crag’s Checklist (scraggliest. Com), [email protected] (eBay. Mother), and used items shops. Protecting this data and our objective in thoughts, we started to debate the format and content material of our survey. We first mentioned our unit of research, which we decided to be people.

The pattern we used for our analysis was a pattern of comfort.We referred to as on our buddies, household and associates to take part in our survey pattern. Given this, we anticipated that almost all of our pattern would comprise principally center class folks of their ass and ass. Contemplating our pattern, we decided that an internet survey could be the simplest format for reaching them. We knew that the majority of our pattern inhabitants spent quite a lot of time on-line, notably on social networking web sites, and felt that an internet format could be best. We then started to debate Question Assignment content material and order.As a way to tackle the analysis downside, we targeted on the next key matter areas: ;Lending and buying habits ; Data of pawn outlets ; Expertise with pawn outlets ; Notion Of pawn outlets In figuring out the Question Assignment order, we mentioned the truth that we would have liked to learn about folks’s present behaviors earlier than we might ask about their perceptions of pawn outlets.

Provided that, we used a funnel format, beginning with broad base questions on expertise and information after which honing in on extra particular data.In figuring out the demographic data to be collected, we thought-about what data we needed to cross-tabulate to drag out findings for the NAP. We additionally took care to offer all kinds of reply response classes for our demographic questions to make sure our respondents didn’t really feel alienated or turned off from responding. General, our survey design embodied the positivist paradigm, specializing in the gathering of quantitative information. We selected to give attention to quantitative information to low for higher ease in assortment and Assessment, in addition to to accommodate the restricted time and pattern constraints we have been confronted with.To do that, we used a wide range of Question Assignment varieties, however didn’t use any open-ended questions (excluding the choice for folks to offer element when choosing “different” on some questions). As soon as the survey was full, we distributed it utilizing a hyperlink through e-mail and thru messages on Spine.

We every crafted our personal “tee-up” for the survey, however targeted on the truth that the survey was on pawn outlets, took 5 minutes to finish, and could be nameless. Anonymity was an vital piece to notice for our respondents, as we have been requesting private data reminiscent of revenue.In complete, the survey was despatched to 488 folks. 1 13 folks responded to the survey, representing a response charge of 23. 26%. Relaxation Its Nearly all of respondents have been feminine (68%) and not less than half Caucasian (97%). Age was negatively skewed, with most respondents falling between the ages of 26-35 (65%).

Most respondents have been within the middle- to upper- class, with annual family revenue comparatively evenly dispersed (See Determine 1). Lastly, nearly all of respondents had a four-year diploma (52%).Determine 1: Annual Family Earnings ending Habits When requested how respondents would cope with an surprising want for money, the bulk acknowledged they might use private financial savings (77%) or a bank card (48%). They depend on family and friends quite than utilizing exterior sources (e. G. , financial institution mortgage, pawn) to acquire extra funds. Solely 17% stated they might promote a private belonging or use it as collateral for a short-term mortgage.

Different choices respondents listed included utilizing different investments, reminiscent of residence fairness and bonds. Determine 2 illustrates respondents’ most well-liked technique of acquiring money if offered with an surprising want.Determine 2: most well-liked Means Of Acquiring Money if offered with an Surprising Want #Reply 1 Use private financial savings 77% 2 Use bank card three Borrow cash from a buddy or relative 35% four Take out a financial institution mortgage 17% 5 Promote possession for money 6 use possession as collateral for a short-term mortgage 7 Get money advance in your subsequent paycheck 6% eight Different (Please checklist) four% When requested to charge what’s most vital in searching for a short-term mortgage, rate of interest was ranked first, adopted by reimbursement time interval, ease of lending course of and repute Of lender.Lastly, when requested what the minimal quantity was for which respondents would take into account getting a mortgage room a pawn store, 68% stated they might not take into account taking a short-term mortgage from a pawn store. Of those that chosen a determine, the bulk chosen $251-$500 because the minimal quantity they might take into account pawning. Buying Habits The survey discovered that 89% of respondents had bought used items apart from a car. Of these, the bulk had finished so at storage gross sales (84%) and thrift shops (72%).

One notably fascinating discovering was that, when examined by gender, pawn outlets have been the one used good retail outlet frequented extra by males than females (See Determine three). Determine three: Used Items Retail Outlet by Gender Institution Male Feminine Thrift retailer 27% Consignment Retailer 17% 83% Different Used Product Tales% 59% Vintage Store Pawn Store 53% 47% Graveyard Sale Property sale In-Individual Public sale 30% 70% on-line Communicates Web site Different (Please checklist) 50. 0P. 00% Those that had not bought used items acknowledged the first motive was a desire to buy new gadgets. Pawn outlets will probably not see these respondents of their shops, and there may be probably little they will do to vary their minds. Data of Pawn Shops The survey confirmed that 65% of respondents had visited a pawn store previously. It additionally confirmed that 75% of respondents had bartered throughout a sale or urarches/p>Nevertheless, when requested to establish providers supplied by pawn outlets, there have been a number of misconceptions: zero 47% thought pawn outlets supplied payday loans 014% thought pawn outlets supplied bail bonds 03% thought pawn outlets supplied auctions Moreover, there was little information of the particular pawn service: whereas 89% of respondents have been conscious they may promote one thing, solely 64% have been conscious that they may get a short-term mortgage.

The retail alternative was clear: of respondents knew that pawn outlets supply retail for used items. Two respondents made notice that they dididn’tnow what providers can be found at awn outlets.Determine four illustrates the share of respondents who believed every listed service is obtainable at pawn outlets. Providers in crimson textual content will not be usually supplied within the trade. Determine four: notion Of pawn Store Providers Reply Payday loans 47% Quick-term loans utilizing private property as collateral Auctions three% Retail for brand spanking new items 29% Retail for used items Change of non-public property for money Bail bonds Different (Please checklist) 2% Expertise with Pawn Shops Of the 72 respondents who had visited a pawn store, solely about 57 (79%) really used a service there.Of these 57, roughly 47 (82%) had urresearchesn merchandise, 20 (35%) had offered an merchandise, and just one (2%) pawned an merchandise for a mortgage. The opposite 15 individuals who had visited a pawn store probably didn’t do any enterprise there; nonetheless, since this was not an possibility, we can’t be sure.

Of those that had visited a pawn store, 69% rated their expertise(s) “impartial,” and 27% rated the expertise both “constructive” or “very constructive. ” Solely four% reported a “unfavourable” expertise, indicating that, total, experiences have been extra good than unhealthy.Perceptions of Pawn Shops We requested respondents to charge numerous frequent beliefs or perceptions of pawn outlets recognized in our preliminary analysis. Determine 5 exhibits the imply rankings (on a five-point scale) for every recognized ‘bother spot,” with the best imply equating to one of the best ranking. The desk is sorted from the bottom rating to one of the best. Determine 5: Private Emotions relating to Pawn Shops Question Assignment Imply Pawn outlets are a superb possibility for getting a short-term mortgage. 2.

19 Pawn outlets are clear. 2. 71 Pawn outlets are secure. three. 03 Pawn outlets are law-abiding. three. 04 Pawn store staff are approachable/pleasant.

. 08 Pawn outlets are a superb place to buy used and new items. three. 21 Nearly all of responses have been comparatively impartial. Nevertheless, 67% of esexponentsaid that pawn outlets will not be a superb possibility for getting a short- time period mortgage (disagree or strongly disagree). Solely 6% agreed that this was a superb possibility. Of these surveyed, 20% stated that pawn outlets will not be law- abiding.

Throughout the course of our analysis, an anecdotal instance of this perception got here up. A workforce member’s buddy that lives in Billings, Montana had her automotive damaged into and numerous helpful gadgets stolen.When requested if that occurs loads she famous, “Break-ins occur on a regular basis in Billings as a result of there’s a pawn store on virtually each nook. It’s simple to promote stolen stuff. ” Of those that expressed this opinion, 75% have seen pawn outlets portrayed in tv and/or motion pictures. This was the strongest correlation discovered between media portrayal and unfavourable photos of pawn outlets. Nevertheless, you will need to notice that almost all of individuals have seen pawn outlets portrayed within the media, and basic consciousness is excessive.

Key Conclusions Based mostly on the survey outcomes, we formulated the next tentative conclusions.It is very important notice that these conclusions are tentative, as our survey didn’t use random sampling. Our conclusions Help set up the muse for our suggestions on how the NPNAPnd pawn store wnwinnersay probably enhance enterprise. Training Hole One of many main conclusions is that there’s a important schooling hole across the want for pawn outlets, the providers supplied, and their relative worth in peoples’ lives. It is very important start by stating that our outcomes didn’t establish a lack of know-how of the existence of pawn outlets.Nevertheless, the findings confirmed that some folks assume that pawn outlets supply payday loans and bail bonds, that are providers that pawn outlets usually don’t present. Of the providers that pawn outlets do present, way more folks have been conscious of the retail alternatives versus the short-term loans.

teTersestates In analyzing the individuals’ borrowing habits and preferences, we famous that extra respondents listed bank cards as a most well-liked technique over loans, regardless of the a lot larger rate of interest usually related to bank cards.If pawn outlets can keep that they persistently present decrease rates of interest, past simply aggressive charges, this could be a chance to construct worth and consciousness. Lending Preferences Our survey outcomes present that folks look to what they know as handy fast money choices. Pawn outlets don’t overtly qualify as being handy or a top-of-mind possibility. Within the case of our individuals, they don’t signify typical pawn store clients based mostly on the info supplied by the NPNAPMany of those folks presumably have the creditworthiness to make use of financial institution financial savings and loans or bank cards.These choices appear embedded within the lives of the bulk Of the individuals, making the necessity for quick money a call Of comfort. The probability and quantity at which respondents would think about using a pawn store for a short-term mortgage counsel that the folks we surveyed will not be a key demographic for pawn store loans.

If pawn outlets are fascinated by doing enterprise with white, middle- to upper-class younger adults, hey shouldn’t count on quite a lot of loans. It’s vital to notice that repute of lender was ranked the least vital issue when searching for a short-term mortgage.This means the assumed poor repute of pawn outlets wouldn’t be as vital an element as price for these searching for short-term loans. Retail Preferences Whereas nearly all of respondents had bought used items, pawn outlets weren’t extremely used as a used good retail outlet. Due to this, there could also be a chance to additional research the retail facet of the enterprise to study what forms of merchandise folks need to buy from locations ho promote used merchandise. We additionally discovered that many individuals have bartered throughout a sale or buy.This means there may be probably no hesitation to go to pawn outlets based mostly on worry of the bartering that always takes place through the gross sales course of.

Indifference Towards Pawn Shops Our findings counsel that there’s extra indifference towards pawn outlets amongst these We surveyed versus emotions of disdain and mistrust. When it got here to non-public emotions about pawn outlets, nearly all of individuals felt impartial in all classes starting from security, cleanliness and the friendliness of staff. Suggestions We suggest the next suggestions to the NPNAPs they work in the direction of enhancing the picture of pawn outlets and growing use. . Promote and educate. To enhance basic consciousness across the worth of pawn outlets and their potential relevance in peoples’ lives, we suggest considerably growing promotion and schooling about key providers, particularly short-term lending, as our survey discovered it is a service of which not many individuals have been conscious. Since our survey confirmed a basic feeling of indifference towards pawn outlets, the NPNAPhould additionally take a look at what could be finished to maneuver folks towards trtrotterositive emotions about pawn outlets normally.

. Broaden enterprise technique to focus extra closely on retail buyers. Enterprise homeowners are all the time searching for methods to develop their enterprise into associated areas that their similar clients need to purchase. Our findings counsel that for enterprise development alternative, stronger positioning focused to center class and upper-middle class women and men as a retail possibility for used items is required. This may occasionally embody the necessity for extra partaking storefronts, extra merchandise choices and extra consumer-centric service personnel.We suggest inspecting ptoptionso improve stock selection, reminiscent of constructing merchandise and managing stock at a regional degree to give attention to gadgets which may be fashionable in a selected neighborhood or area. Pawn outlets must also consider what sort of products middle-class buyers are searching for and work to take care of or replace their stock accordingly.

three. Proceed to help and retain present mortgage clients. It is very important state that we’re not recommending that pawn outlets cannibalize the mortgage enterprise.We extremely suggest protecting this enterprise and retaining present clients as greatest as attainable. Our advice is o modestly put money into constructing this a part of the enterprise with the demographic surveyed. Until pawn outlets can keep that they persistently present decrease rates of interest, past simply aggressive charges, the actual worth proposition is that pawn outlets are quicker than making use of for and receiving a bank card; they don’t require sophisticated paperwork; and they don’t have an effect on one’s private credit score.And since the mortgage is backed by merchandise, the particular person merely loses that merchandise.

With financial institution loans, an individual might lose their home or automotive. LeLearningverall, we felt that an internet survey was a terrific technique for our analysis. We probably wouldn’t have been in a position to accumulate 1 13 responses had we used an in-person or phone survey. The net format was comparatively palms off, which allowed us to be more practical. It additionally allowed us to succeed in folks throughout the nation, which we might not have been in a position to do with in-person surveys.We felt that utilizing FaBackbones a approach to distribute our survey was extraordinarily efficient. It allowed us to succeed in a lot of folks in a brief time period.

It additionally eradicated any limitations from not having contact data, reminiscent of an e-mail tackle, for potential respondents. Nevertheless, sing FaBackboneay have restricted the age vary of respondents. The literature Assessment we accomplished was extraordinarily useful in framing our survey. It helped us be taught what some frequent misconceptions have been about pawn outlets, which helped inform our questions.Had we not finished this preliminary analysis, we could have missed some key points in our survey. Whereas we really feel our survey was designed properly total, there was one Question Assignment we might have altered if we have been to do it over. Question Assignment 9 requested, “If sure [you have visited a pawn shop], what providers have you ever used? ” The choices have been: oPpawnedtem(s) for short-term mortgage oSsoldtem(s) for money o Bought items Nevertheless, we didn’t present the choice of “none/simply regarded.

This made it troublesome to investigate this Question Assignment and put it to use as a lot as we could have favored for cross tabulation. After reviewing the outcomes, we have been shocked to see how lots of the respondents have been white. Though we have been not sure of the precise trigger, this underscored the significance of getting a various survey inhabitants. It could possibly be that the folks of different ethnicities to whom we distributed the survey weren’t correctly motivated to reply for some motive; in fact, additionally it is probably that different ethnicities have been merely not properly represented within the survey distribution.