An example of a fund making decisions based on primary consumer survey is Whitney Tilson when they shorted Netflix (NFLX). Now, the Wall Street Journal published an article on how Walmart is losing its edge. Key parts of the article are based on consumer surveys by equity research analysts on Walmart.
Some excerpts include:
A recent Goldman Sachs Group Inc. survey of store prices in Chicago found that Wal-Mart prices on identical toys, foods and health and beauty aids were lower than Target's across all categories and 6.2% less overall.....
Morgan Stanley surveys have yielded similar results. But when it recently polled 1,100 Wal-Mart customers to see what they thought, it found the perception was quite different. "We were shocked to see 60% of Wal-Mart shoppers no longer viewed Wal-Mart as having the lowest prices," says Morgan Stanley analyst Mark Wiltamuth
Some other examples were consumer choice could significantly impact revenue include (Warning: These examples could be dated by tomorrow!):
- Churn & New subscriber uptake because of price changes on Netflix (NFLX)
- Patient attitudes towards Lipitor when it goes of patent & its impact on Pfizer (PFE)
- Are price conscious shoppers preferences for MetroPCS (PCS) changing when compared to ATT & Verizon Vs T-Mobile Vs Sprint in overlapping regions?
- Are regular New York Times (NYT) readers going to upgrade to the subscription plan in the next 12 Months?
- How are consumers reacting to cable offerings (CMCSA, TWC, CHTR, CVC) Vs FiOS/uVerse (VZ/T) when both offered in the same markets?