Complex Consumers, Adults 40-59 are Less Brand Loyal and Spend More Than
Adults Under 40
Study Reveals Three Boomer Spending Traits: "Promiscuous Purchasers," "Free
Agent Shoppers" and "Savvy Switchers"
WASHINGTON, July 7 -- With 40 and 50-somethings at or near
the peak of their earning potential and typically having several financial
dependants ranging from small children to elderly parents, this prime Adult
demographic is making the majority of the household spending decisions,
according to TV Land's "Generation BUY: A Close Look at the Boomer Consumer"
Study. The findings from the study were expressed today during a press
conference at the National Press Club by Larry W. Jones, president, TV Land,
who was joined by Kim Alexis, host of TV Land's original reality series "She's
Got The Look" and Beverly Johnson, a judge on the same series. Not only are
40 and 50 year-olds spending more on themselves per month than Millennials and
Gen Xers but more interestingly they are spending twice as much as their
younger cohorts on others in their lives. With so many people to shop for,
Boomers are making several multi-generational purchase decisions at once and
-- contrary to common assumptions -- they are far less brand loyal than
Millennials and Gen Xers.
TV Land's "Generation BUY: A Close Look at the Boomer Consumer" Study,
fielded by OTX, includes input from almost 4,000 adults ages 18-65 nationwide.
Commissioned by TV Land, a division of Viacom Inc.'s MTV Networks, the study
provides information on the purchase decisions and brand loyalty of Adults
40-59. The study is part of TV Land's commitment to better understand and
superserve this dynamic adult audience. "She's Got The Look" is part of TV
Land's strategy of delivering programming that reflects the life stage and
attitude of the network's target demographic. This new original series has
resonated with TV Land's audience and concludes this Wednesday, July 9 at 10pm
(ET/PT).
"While we have always known that it's a mistake to underestimate the power
of people in their 40s and 50s, 'Generation BUY' once again shows us that
Boomers are a major source of consumerism in this country," states Larry W.
Jones, president, TV Land. "Knowing that this generation has so many
dependants, the means to buy the products that appeal to them and the
willingness to try new brands is powerful information to share with our
marketing and advertising partners."
"This research once again dispels myths about 40 and 50-somethings,"
states Laurel Wichert, vice president, Research, TV Land. "The lack of brand
loyalty coupled with their purchasing power makes the 40-59 audience an
extremely desirable target that should not be overlooked."
TV Land's "Generation BUY" study found three traits that make up the 40-59
consumer: "Promiscuous Purchasers," "Free Agent Shoppers" and "Savvy
Switchers." More often than not the breadwinners in the household, Boomers
make most or all of the family spending decisions. With the large amount of
purchase decisions they are making for others spanning multiple generations,
they are "Promiscuous Purchasers." The "Generation BUY" study found that
people 40-59 spend more than three times the amount of money per month on
spouses ($514) than adults under 40 ($169). Additionally, they spend nearly
twice as much per month on kids ($295 vs. $158) and three times the amount per
month on teen children ($494 vs. $136). With so many purchase decisions to
make for the household, these "Promiscuous Purchasers" are an important
marketing sector even when they are not the prime target.
TV Land's "Generation BUY" study also found that 40 and 50-somethings are
more open to new brands and less brand loyal than people under 40 making
40-59s "Free Agent Shoppers." Twenty-six percent of Boomers said they are not
at all brand loyal versus 21% of Gen X and Millennials. In fact, Gen Y are
the most likely to say that once they have made a commitment to a brand, they
will stick with it, no matter what. The willingness of 40 and 50 year-olds to
buy new brands carries over across virtually every product category including
electronics, personal care products, restaurants, automobiles and more. And
when compared to the Generation who came before them these "Free Agent
Shoppers" have very different spending habits. No longer will this age group
buy the same products based on lifelong brand decisions and spend less as they
age. This demo is redefining brand loyalty and determining purchase decisions
based on the effectiveness of products. Today's 40 and 50-somethings stick
with a product for as long as it's good and fulfills their complex needs.
They are not afraid to change for something they feel will improve their
lives.
Baby Boomers consider themselves open-minded and evolving. This is core
to their identity and key to their purchasing behavior. Another key finding
of the study is that while Boomers are very open to new brands, they will not
switch just because something is new. Adults 40-59 are "Savvy Switchers."
Ninety-one percent of people in their 40s and 50s want the brand to provide
more value versus 83% of Gen X and Millennials. Forty to 59s want substance
over style and care about the promise of a brand over the image of a brand.
Boomers will consider new brands if that brand is a better alternative -- the
product or service must be more useful, functional and provide the most
benefit/value. Unlike Millennials and Gen Xers they are less likely to be
influenced by the notion that the brand is more prestigious or the latest
style; instead, their purchase decisions are based on reliability and quality.
The product/service needs to have the best features, not necessarily the most
features.
Since Adults 40-59 tend to make purchasing decisions informed by what
products and/or services will make life easier for them, it follows that the
advertising that resonates with them is the kind that explains the products'
capabilities and describes why the product is superior. Boomers are less
interested in "teaser" ads that create a mood but do not offer much in terms
of substance. While this demo is more likely to enjoy ads with humor than
their younger cohorts, ads with popular songs and celebrities are less
appealing.
TV Land's "Generation BUY" study was done in two phases. First,
qualitative research focus groups were conducted to identify key insights and
hypotheses. Second, between January 4th and 12th, 2008, 2,900 Adults 18-65
took an online survey about brand loyalty and decision making. From February
22nd to 24th, 1,000 Adults 18-65 took an online survey about brands and
purchasing habits.
About OTX:
OTX is a global consumer research and consulting firm that has established
itself as a leading provider of online-based research. The company specializes
in providing innovative, cutting-edge online technology, products and analysis
to the marketing, entertainment and advertising communities. OTX has developed
the most innovative products available for online research today -- products
that work to uncover deeper and more profound consumer insight. Today the
company is one of the fastest-growing research companies in the United States
and has offices in Los Angeles, New York, Cincinnati, Miami, Chicago and
London, with strategic partners in Japan, Australia, Russia, China and Mexico.
About TV Land:
TV Land is dedicated to presenting the best in entertainment on all
platforms for consumers in their 40s and 50s. Armed with a slate of original
programming, acquired classic shows, hit movies and full-service web site, TV
Land is now seen in over 90 million U.S. homes. For up-to-the-minute and
archival press information including releases and photographs, please visit TV
Land's press-only web site at www.tvlandpress.com .
About MTV Networks
MTV Networks, a unit of Viacom (NYSE: VIA, VIA.B), is one of the world's
leading creators of programming and content across all media platforms. MTV
Networks, with more than 150 channels worldwide, owns and operates the
following television programming services -- MTV: MUSIC TELEVISION, MTV2, VH1,
mtvU, NICKELODEON, NICK at NITE, COMEDY CENTRAL, TV LAND, SPIKE TV, CMT,
NOGGIN/THE N, VH1 CLASSIC, MTVN INTERNATIONAL and THE DIGITAL SUITE FROM MTV
NETWORKS, a package of 13 digital services, all of these networks trademarks
of MTV Networks. MTV Networks connects with its audiences through its robust
consumer products businesses and its more than 300 interactive properties
worldwide, including online, broadband, wireless and interactive television
services and also has licensing agreements, joint ventures, and syndication
deals whereby all of its programming services can be seen worldwide.
SOURCE TV Land
CONTACT:
Rachel Sandler, +1-917-750-1687
Rachel.Sandler@tvland.com
or
Vanessa Reyes, +1-310-407-4727
Vanessa.Reyes@tvland.com
both of TV Land
/Web site: http://www.nick-at-nite.com
http://www.tvlandpress.com
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