Indiantelevision.com Team

(10 July 2008 8:00 pm)

MUMBAI: With 40 and 50-somethings in the US at or near the peak of their earning potential, this prime adult demographic is making the majority of the household spending decisions, states TV Land's latest consumer study.

US media conglomerate Viacom's TV Land has released Generation Buy: A Close Look at the Boomer Consumer Study, that looks at the impact of the spending decisions from various age groups.

The study finds that not only are the 40 and 50 year-olds in the US spending more on themselves per month than Millennials and Gen Xers, but 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 study, fielded by OTX, includes input from around 4,000 adults between the age group of 18-65. The study provides information on the purchase decisions and brand loyalty of adults between 40 to 59.

TV Land president Larry W Jones says, "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."

"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," Jones adds.

The 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 that span multiple generations, they are Promiscuous Purchasers.

The study found that people between 40 to 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 and three times the amount per month on teen children. 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.

The study also found that 40 and 50-somethings are more open to new brands and less brand loyal than people under 40, thereby making 40-59s Free Agent Shoppers. 26 per cent of "Boomers" said that they are not at all brand loyal unlike the 21 per cent of Gen X and Millennials.

TV Land VP research Laurel Wichert says, "This research once again dispels myths about 40 and 50-somethings. The lack of brand loyalty coupled with their purchasing power makes the 40-59 audience an extremely desirable target that should not be overlooked."

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. Adult 40-59 are "Savvy Switchers."

91 per cent of people in their 40s and 50s want the brand to provide more value versus 83 per cent of Gen X and Millennials.

Since adult 40-59 tend to make purchasing decisions informed by what products 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.

Also, "Boomers" are less interested in teaser ads that create a mood but do not offer much in terms of substance.