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How to protect your finances through COVID-19

During uncertain times, many feel anxious about how they will cope with unanticipated changes or hardships. Here are top tips to protect your finances during Covid-19.

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Communities around the world are feeling the impact of temporary closures of businesses, schools and public facilities. During uncertain times, many feel anxious about how they will cope with unanticipated changes or hardships.

“COVID-19 is an unprecedented… emergency and we must all work together to reduce its overall impacts to allow families to recover once it has passed,” said OnPoint Community Credit Union CEO/president Rob Stuart.

Below are OnPoint Community Credit Union’s top tips for protecting finances amid COVID-19:

Your first actions  

  • Prioritize expenses and review your budget. If you’re concerned about a loss of income or unplanned expenses and don’t have emergency savings, you may need to prioritize which expenses you cover first and update your budget accordingly.
  • Deal with creditors proactively. If you face challenges in paying your monthly obligations, you have a better chance of working out an agreeable payment plan with creditors when you contact them early.
  • Know your options. Look into options that may be available for any loans you have – e.g. Home Equity Lines of Credit, Small Business Loans, and more.
  • Secure access to digital banking. If you aren’t able to physically visit your financial institution’s branch or call wait times are longer than expected, be prepared by downloading the most recent version with their app and test your login.

Protect yourself from scams
Scammers can be more active during uncertain times. To protect yourself and your family:

  • Be aware. Stay up to date on current scams and how to take action if you think you’ve been a victim. There are already national reports of email phishing scams targeting remote workers, offering economic stimulus checks and selling health insurance. OnPoint’s data security team has seen more debit and credit card fraud than average, and believes fraudsters are using the distraction of COVID-19 to get information.
  • Be vigilant. Scrutinize emails, texts, calls and social media posts that offer financial relief or promote the sale of cure-all products or limited-time special offers. Scam tactics can include masquerading as a delivery company such as UPS, claiming to offer advice from the World Health Organization (WHO) and fake lending emails related to the interest rate drop. These messages often contain links to malicious sites that closely mirror the legitimate sites. Ensure that you hover over the link to validate the site before clicking.
  • Be cautious. Never disclose your online banking credentials or PINs. Scammers often claim to be from your financial institution calling about a fraudulent card charge. They will then ask you to confirm information like card number, PIN, online banking credentials, etc. Also, beware of those striking up long distance relationships online. Sweetheart scammers often fake an emergency that necessitates money. Victims then willingly act on the fraudster’s instructions to “help” through mobile deposit, external transfers and wires.

Know your resources for job loss
With mandatory and recommended closures of businesses and large numbers of people staying home, the crisis is bound to impact the income of workers and business owners. During this time, it’s important to understand what options are available from financial institutions, utility companies, and governments that may be offering new programs, special considerations, or grace periods.

The coronavirus relief bill, which was signed into law last week, significantly expands unemployment insurance for out-of-work Americans, including larger checks, a longer eligibility period, and an extension to previously ineligible workers.

Address investment concerns
Your investment strategy should match where you are in your retirement planning and for some, that may mean your portfolio will move to lower risk options as you near or enter retirement.This can help protect you from market fluctuations.

If your retirement is still a ways off, it’s likely best for you to take a long-term approach to financial planning and try not to fixate on the day-to-day valuations of your 401k or other assets. If you are feeling uneasy or want to ensure that your retirement plan is still on track with your goals, seek the guidance of a Financial Advisor with a reputable affiliation.

Engage the family
Children may sense your stress but not understand how your financial situation has been affected, causing them to feel uneasy. When appropriate, explain the need to cut back temporarily and discuss the news calmly and simply. Making time to discuss what changes you are anticipating and how everyone can contribute toward the family, including:

  • For older family members, sharing the responsibility for paying the bills or deciding which expenses to reduce.
  • Designating financial chores, such as having small children count out the penny jar and having older children sit alongside you to read through the utility bills.
  • Taking 20 minutes to ask each family member how they could contribute to the family next week via finances or chores.
  • Writing down everyone’s commitments and pop it up on the fridge or door; getting everyone involved may reduce stress and create a feeling of unity.

Strategies

Consumer openness to smoke-impacted wines, offering new market opportunities

Consumers, particularly those that like smokey flavors in food and beverages, are open to drinking smoke-impacted wines. Also, the type of information on the label can modulate consumer acceptance.

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Certain groups of consumers appear to be open to drinking smoke-impacted wines, a finding in a new study that could provide market opportunities for winemakers increasingly dealing with the effects of wildfire smoke on grapes.

The study by researchers at Oregon State University and in New Zealand found that consumers, particularly those that like smokey flavors in food and beverages, are open to drinking smoke-impacted wines. They also found that the type of information on the label can modulate consumer acceptance.

“This research provides vital information for the wine industry,” said Elizabeth Tomasino, a professor of enology at Oregon State. “It demonstrates that with certain wine drinkers there is a potential market for these smoke-impacted wines.”

As the number and size of wildfires grow globally, the wine industry has been heavily impacted. For example, an economic analysis of the 2020 wildfires on the West Coast of the United States estimated wine industry losses up to $3.7 billion.

Following the 2020 fires, a research team, led by Oregon State scientists, received a $7.65 million grant from the U.S. Department of Agriculture to study the impact of smoke on wine.

Since then, the researchers have made several key advances. They discovered a class of compounds that contribute to smoke impact in grapes. They also developed spray-on coatings for grapes that have shown promise in preventing off flavors in wines that result from contact with wildfire smoke.

The latest research, published in the journal Food Research International, focuses on consumer attitudes toward smoke-impacted wine, a topic that has received very little attention.

For the study, Tomasino and Jenna Fryer, a doctoral student in her lab, sent smoke-impacted and non-smoke wine made from Oregon pinot noir grapes to New Zealand. There, working with Amanda Dupas de Matos and Joanne Hort at Massey University, they recruited 197 participants for the study.

They conducted the research in New Zealand, a region where winemaking has not been significantly impacted by wildfire, because they were interested in how people would respond to the wines. Future research will compare the results from New Zealand to findings from tasting panels in Oregon and Ohio.

With the research in New Zealand, two clusters of consumers were identified, one that liked the smoke-impacted wine (110 people) and the other that disliked it (87 people).

Findings of the study included:

  • The smoke-liking group had an average liking score of 6.86 out of a nine-point scale.
  • The smoke-disliking group had an average score of 3.26.
  • The introduction of labels, versus unlabeled wine, increased liking of the smoke-impacted wines for the smoke-dislikers from just over three to more than five on the nine-point scale. One of the labels overtly referenced wildfires with the words “Smoke Stack, experience the 2020 vintage with this unique, lightly smokey wine.”
  • The different labels didn’t have much of an impact on the smoke-likers, but their average scores were still above six, outpacing the dislikers.

The findings indicate that there are potential tools winemakers can use to make a smoke-impacted wine viable for the market, the researchers say. One option is blending, a common winemaking technique that in this case could involve mixing a smoke-impacted wine with a non-impacted wine. Winemakers can also take different approaches to labeling and marketing to specifically target the smoke-liking group.

“Our findings indicate that there is more forgiveness among consumers for these smokey wines than winemakers think,” Tomasino said. “It seems winemakers have a lot more options if they want to sell wine made with these grapes.”

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BizNews

Women more likely to choose wine with feminine labels

The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

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To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.

A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.  

“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”

Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.

In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.

The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.

“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.

A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.

However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.

Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.

“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.

In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.

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Strategies

Tips that businesses should consider during the holiday shopping season

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

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As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond. 

SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.

Plan for the Holiday Rush

Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.

“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.

If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts. 

Create an Experience for Customers

“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.

Stand Out from the Crowd

Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

Be E-Commerce Friendly

As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.

“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”

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