As Baby Boomers (born between 1946 and 1964) age, the largest generation in American history may reshape the advertising industry, just as it did the country’s cultural landscape in its youth. Marketers have historically shunned the older population because it spent less and its smaller numbers did not make targeting cost-effective.
The Baby Boomer generation is rewriting the rules, however. Boomers’ behavior is similar to that of younger generations setting up households — but Boomers are establishing their retirement households, and they have the time and, in many cases, the money to do it just as they like. They differ from their younger counterparts by spending more on travel and leisure.
That is not to say the recession hasn’t affected Boomers; some have delayed retirement, some have taken early retirement, and some have moved into smaller homes or cut back on non-essential spending to ensure their money lasts the rest of their lives. Boomers (40%) are more likely than Gen Xers (28%) and Millennials (25%) to say their economic situation is poor, finds Digital Research and Think Vine. But they are optimistic for the future, with only 16% who believe they will be in a poor financial state in the coming six months. This compares to 8% of Gen Xers and 5% of Millennials.
Boomers are more likely than younger adults to say they are buying less as a result of the recession. They are doing less comparison shopping, compared to Gen Xers and Millennials. Instead, they are trading down and sacrificing quality, a savings tactic that Millennials and Gen Xers have not embraced. Boomers are leading the migration to dollar store shopping, with 44% shopping there more, compared to 28% of Gen Xers and 30% of Millennials. Boomers are also buying more in bulk, as are Gen Xers, while Millennials are not, which suggests this savings tactic may be driven more by household size.
Although Boomers have a less optimistic view of the economy, they exercise their spending power in-store. Nielsen notes that Boomers account for 38.5% of spending on consumer packaged goods. In fact, Boomers spend more than other generations in 1,023 of 1,083 CPG categories. That is despite the researchers’ estimation that only 5% of advertising dollars target those aged 35-65 (which includes the Boomer generation).
Like other shoppers, most Boomers go to the store with a shopping list in hand, notes M/A/R/C research. They put more effort into pre-planning their list and reference it casually in store. Boomers see brand and price as more important than do other shopper segments, and they are loyal to their favorite retailers. When composing the list, they are more influenced than other shoppers by the store ad or circular; they seek their preferred brands, but can be swayed by price. They do not buy many items that are not on their list and are disciplined about impulse shopping. They are also encouraged to buy when a coupon is available.
Boomers spend more than the average shopper per trip at certain types of stores, including:
• Walmart (+$45.86);
• Grocery stores (+$27.39); and
• Drug stores (+$32.71).
Perhaps because they have more time and practice cooking at home (see “Matures Are At Home…,” p. 12), Boomers are more likely than their younger counterparts to say that steak, burgers, fish, shrimp, and pasta they prepare at home are just as good — if not better — than what they get at restaurants. Younger and older Americans agree that pizza at home cannot compare to pizzeria made pies, but they also agree that casseroles and stir frys are best at home. [Mature Market, Consumer Spending & Attitudes]
Sources: “Grocery Shopper Behavior, Q1 2010,” Digital Research, Jane Mount, EVP, 201 Lafayette Center, Kennebunk, ME 04043; 207-985-7660, x121; jane.mount@digitalresearch.com; www.digitalresearch.com. Price: Call for information.
The Nielsen Company, Todd Hale, SVP Consumer & Shopping Insights, 770 Broadway, New York, NY 10003-9595; 646-654-5000; www.nielsen.com.
U.S. Census Bureau, Public Information Office, 400 Silver Hill Rd., Washington, DC 20233; 301-763-3030; pio@census.gov; www.census.gov.
“How America Spends,” Bundle, Jaidev Shergill, Founder, 149 5th Ave., 4th Fl., New York, NY 10010; jaidev@bundle.com; www.bundle.com. Price: Available online at no charge.
“Shopping Lists,” The Checkout, Issue 4.10, M/A/R/C Research, Merrill Dubrow, President, 1660 N. Westridge Cir., Irving, TX 75038; 972-983-0416; merrill.dubrow@marcresearch.com; www.marcresearch.com. Price: Call for information.
“Talking About Food Quality,” The Consumer Network, The Shopper Report May 2010, Mona Doyle, PO Box 42753, Philadelphia, PA 19101; 215-235-2400; shopperreport@cs.com. Price: $99 for a one-year subscription.
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