According to TV Land's "Generation BUY: A Close Look at the Boomer Consumer" study, 40 and 50 year-olds are not only 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.
The study reports 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 buyers are an important marketing sector even when they are not the prime target.
Larry W. Jones, president, TV Land, observes that "... it's a mistake to underestimate the power of people in their 40s and 50s... 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... "
The study also found that 40 and 50-somethings are more open to new brands and less brand loyal than people under 40. 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, and automobiles.
Laurel Wichert, vice president, Research, TV Land, says "This research... 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..."
No longer will this age group buy the same products based on lifelong brand decisions, says the report. 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.
Boomers will consider new brands if the product or service is 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. They are not afraid to change for something they feel will improve their lives, notes the report.
Ninety-one percent of people in their 40s and 50s want the brand to provide more value versus 83% of Gen X and Millennials. The study found that Boomers are less interested in "teaser" ads that create a mood but do not offer much in terms of substance, though more likely to enjoy ads with humor than their younger cohorts.
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, concludes the report.
For more about this study, please visit this site.