Though members of the Baby-Boom generation are often lumped into a homogenous group by marketers, new research from STORES, the Boomer Project and BIGresearch uncovers differences among them that have important implications for retailers, STORES writes.
As a cohort, the 78 million Americans born between 1946 and 1964 spend an estimated $2.3 trillion each year on consumer goods and services.
An economic force to reckon with, Boomers lead differing lifestyles and are in different life stages; they also have diverse buying behaviors and varied political agendas.
Matt Thornhill, president and co-founder of the Boomer Project claims some retailers focus the bulk of their merchandising and marketing on young, less affluent adults. “Retailers that fail to acknowledge boomers today – thinking they’re past their spending prime – are limiting their success,” he is quoted as saying.
Below, findings of the research, as presented by STORES.
1. Older and Younger Boomers Are Different
The two groups have different frames of reference for decision-making, shopping, spending leisure time, cultural icons and involving themselves in media and popular culture.
Older Boomers (born 1946-1954) are more likely to…
Younger Boomers (born 1955-1964) are more likely to…
2. Single Boomers Have Clout
Though one-third of Baby Boomers, or 25 million people, head up single-income households, it doesnt mean theres only one person in the household. The average number of people in a single boomer’s household is 1.7; the average among married Boomers is 3.0.
Facts about single Boomers:
3. Boomers Value Both New and Traditional Media
Members of this generation use the internet, email and instant messaging. Some blog, some use iPods and many have PDAs. They also still read newspapers and listen to the radio, using a combination of both old and new media to make purchasing decisions:
4. Grandparents Are Young, Active and Well off
Grandparents are frugal, but they are involved and ready to spend money on their grandchildren.
5. U-Boomers Want Lots of Products at Reasonable Prices
Consultants McKinsey coined the phrase “U-Boomers” to describe the 24 million Baby Boomers who are “financially unprepared” yet unwilling to compromise demand for products and services. Though this segment is largely untapped by marketers, U-Boomers will account for almost 25% of total US consumption by 2015. Less-expensive, online delivery channels will make it easier to reach them.
Facts about U-Boomers:
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