• by Jack Loechner , Staff Writer @mp_research, May 8, 2002

The Over 45 Market Can Be Switched

According to a new study, "The Truth About Brand Loyalty & The 45+ Market" conducted by Roper ASW and released by AARP, the buying public 45+ are just as likely as younger consumers to experiment with or switch brands. Stephen Frost, research director for AARP Publications, says "(this) survey defies the myths that brand loyalty always increases with age, and that people over 45 only change brands for lower prices. Even for product categories that traditionally demonstrate high rates of brand loyalty, such as cars, bath soap, and banking services, research shows that over half of the 45+ consumers of that product or service are not brand loyal."

There are more than 93.7 million adults aged 45 and over, who collectively hold more than $750 billion in discretionary household income. AARP identifies three segments within this age group that want different approaches to match their differing needs, lifestyles and lifestages:

The Leading Edge of Baby Boomers (ages 45 to 56)
– These consumers are in their peak years of careers, are juggling work and family. They have probably acquired many of their necessities and can spend on maintaining and improving their lifestyles.

The Gap Generation (ages 57 to 65)
– These adults are either maintaining their careers, or in some cases, making the transition to part-time work, volunteering or leisure activities. They’re asking themselves what kind of lifestyle they want for themselves, no longer for their families.

Life, Part 2 (age 66 and over)
– This group is living through the freedom years with fewer family and work responsibilities, and experiencing a host of changes in their lifestyles, work choices, leisure, housing, activities and interests.

In each of these groups the reality is that consumer experience, not age, dictates their brand choices. Furthermore, buying decisions are often driven more by category than by age. Brand loyalty does not rank high as a point of consideration when making purchases.

% Who Prefer One Product Brand or One Service Provider

	Total	18-44	45-54	55-64	65+
Auto Insurance	70%	63%	76%	78%	80%
Banking Services	61	61	63	61	63
Homeowner's Insurance	53	41	66	65	70
Bath Soap	49	46	53	55	50
Cars	46	43	48	51	56
Skin Care (Women)	42	41	41	38	46
Life Insurance	41	35	46	42	55
SUVs/Trucks/Vans	38	39	39	40	30
Home Computers	37	42	41	38	20
Cosmetics (Women)	37	37	36	36	37
Large Home Appliances	35	31	40	39	40
Televisions	33	32	31	32	38
Cell Phones	32	38	25	31	24
Fragrances	31	30	34	33	30
Athletic Footwear	29	35	23	28	20
Home Stereo Equipment	28	34	24	26	17
Auto Parts/Aftermarket	27	25	25	34	33
Credit Cards	27	23	25	32	39
Breakfast Cereal	26	24	24	30	33
Vitamins	26	23	29	27	31
DVD/Video Players	24	27	23	18	22
Stock or Bond Brokers	24	18	29	31	30
Financial Planning	20	17	27	25	18
Small Home Appliances	19	17	16	21	26
Mutual Fund Companies	19	15	20	24	25
Rental Car Companies	19	21	19	20	12
Airlines	18	18	17	22	17
Casual or Dress Shoes	16	16	12	15	20
Hotels/Motels	12	13	11	13	10
Athletic/Leisure Wear	10	11	8	9	8
Casual Sportswear	9	11	5	7	6
Careerwear	8	10	8	7	4
Cruiselines	8	8	7	9	9
Jewelry (Women Only)	7	9	7	2	5
Tour Operators	6	4	7	11	12
Belts/Ties/Scarves	4	6	3	2	5

Source: AARP/RoperASW Brand Loyalty Study