African-Americans powerful, tech-savvy and diverse
The U.S. African-American population is expanding both in pure numbers and in buying power and has a sizeable influence on technological and media trends. However, African-Americans are not a monolithic group; instead, the black population can be better understood when broken down into seven distinct groups defined by similar characteristics, including buying power and habits, media consumption, and influences, according to African-Americans Revealed, a study conducted by BET, Washington, D.C.
African-Americans in 2008 accounted for a 10 percent increase in population from 2008 vs. 2000, while African-American buying power increased more than 55 percent during the same period to $913 billion. By the year 2013, black buying power is expected to reach $1.2 trillion dollars, a 35 percent increase over 2008.
African-Americans Revealed indicates African-Americans are very tech-savvy, with roughly 31 percent of African-American discretionary spending dollars ($39 billion) going toward the purchase of computers, cell phones and electronics - a proportionally-higher percentage when compared to non-African-Americans. African-Americans also spend more weekly time online (18 hours) than watching television (15 hours). Further, 93 percent of African-Americans go online traditionally via their PCs, while 76 percent access the Web via their cell phones. Approximately 60 percent of African-Americans have downloaded music, a TV show, movie or ringtone in the previous month, while 50 percent regularly update and access a social networking account.
The segments of African-American respondents defined by the study include the following:
Strivers are mostly in their late-20s to early-40s and are adventurous, fashionable, social mavens and opinion leaders who have their eyes on climbing the executive ladder. Conscious Sisters are selfless women that are spiritually connected and highly conscious of their culture.
Tech-Fluentials are digitally savvy and travel in globally-conscious circles. Bright Horizons are young adults in high school and college that are aware of all available technology and electronic gadgets. Inner-Circle Elites are working women rich in their cultural, ancestral and spiritual roots.
Urban Dreamers are young, urban adults who are social magnets and trendsetters focused on living life to the fullest. Survivors are a group of risk-taking teen and young adult males who are hustling to keep their existence in check. For more information visit www.bet.com.
Digital couponing growing at a nice clip
Coupon clipping in the U.S. is taking on a new image, as the average coupon user is becoming richer and smarter - and no longer clipping at all. In fact, despite common perceptions of avid coupon users, consumers who printed digital coupons in 2009 had an average household income of $97,000, 23 percent higher than the average household income of about $79,000. In addition, 34 percent of digital-coupon users in 2009 held a college degree, compared to 30 percent of newspaper-coupon users and 27 percent of the general population, according to Coupons.com, a Mountain View, Calif., couponing Web site.
During 2009 the growth rate of digital coupons outpaced the typical annual growth rate of freestanding insert (FSI) coupons by a factor of more than 10:1. Coupons.com annual data indicates that savings U.S. consumers obtained from digital coupons grew 170 percent in 2009, compared to a typical annual growth rate of 8-16 percent for FSI coupons. Printed savings from Coupons.com and the Coupons.com digital coupon network in 2009 exceeded $858 million, a 170 percent increase from more than $300 million in 2008. Key factors influencing the growth included increased consumer adoption of online printable, save-to-store loyalty card and mobile coupons and increased use of digital coupons by brand marketers.
A significant increase in the number of Americans using digital coupons drove their growth in savings. More than 45 million U.S. consumers used digital coupons in 2009, an 18.4 percent increase from 38 million in 2008. Roughly 20 percent of the U.S. population used digital coupons in 2009.
The top 10 digital-coupon categories for 2009 are ready-to-eat cereal, yogurt, sweet snacks, refrigerated dough, salty snacks, quick-service restaurant/casual dining, nutritional snacks, entertainment, condiments and pizza.
Atlanta topped the list of the most-frugal U.S. cities, with the average Atlanta Coupons.com user saving more than $531 with digital coupons from the site in 2009. As measured by the Coupons.com Savings Index, Tampa, Fla., followed closely in the No. 2 position. The top 10 digital couponing cities are Atlanta; Tampa, Fla.; Cincinnati; St. Louis; Minneapolis; Nashville, Tenn.; Charlotte, N.C.; Cleveland; Pittsburgh; and Kansas City, Mo. For more information visit www.coupons.com.
Consumers cutting back on the small things to save money
Where economic recovery is concerned, are Americans behaving as if they believe things are getting better? When it comes to small things people can do each day to save money, consumers are still acting cautiously. For example, almost two-thirds of U.S. adults say they have purchased more generic brands in the past six months to save money, while an additional 12 percent say they have considered doing so, according to Rochester, N.Y., research company Harris Interactive.
Besides buying private-label items, almost half of U.S. adults say they are brown-bagging lunch instead of purchasing it, with 8 percent having considered doing so; 39 percent are going to the hairdresser/barber/stylist less often and 8 percent have considered doing so; 34 percent have switched to refillable water bottles instead of purchasing bottles of water, while 10 percent have considered doing so; 22 percent say they have cut down on dry cleaning; and 21 percent have reduced purchasing coffee in the morning.
The media has also taken a hit. Thirty-three percent have cancelled one or more magazine subscriptions; 19 percent have cancelled a newspaper subscription; and 22 percent have cancelled or cut back on cable television service, with an additional 20 percent having considered doing so. The only thing a majority of U.S. adults say they have neither done nor considered doing is changing or cancelling their cell phone service (52 percent), and only 15 percent have done so.
There are also some generational differences in what people are doing to save money. Generation X (those ages 34-45) is more likely to brown-bag lunch (56 percent) and cut back on hair styling (43 percent). Matures (those 65+) are more likely to cancel a magazine subscription (45 percent). Echo Boomers (those ages 18-33) are more likely to cancel their landline service and only use their cell phone (20 percent) and to carpool or use mass transit (26 percent). For more information visit www.harrisinteractive.com.
Wegmans named Americans’ favorite over goliath grocers
Wegmans and Costco are the No. 1 grocery retailers as ranked by U.S. consumers, and data shows it has more than a little to do with service and quality - not just convenience - according to research from Market Force Information Inc., a Louisville, Colo., research company. Wegmans was the consumer favorite in the supermarket category, and Costco ranked highest in the mass grocer category.
When respondents were asked to select their single favorite from a list of the country’s 118 top grocery supermarkets, Kroger received the highest number of votes from consumers across the country. This initially placed Kroger atop the list with 11 percent of the votes (followed by Publix and Safeway with 8 percent and 7 percent, respectively), but not all retailers are created equal. While Kroger has almost 2,500 stores in North America, Wegmans - with just 75 stores - has less than one-thirtieth that number. Yet Wegmans scored 3 percent of the total votes for favorite supermarket. When the number of store locations was factored in, Wegmans moved to the top ranking position with a 9 percent score, followed by ShopRite (5 percent) score, and Albertsons and Whole Foods (4 percent each). Wegmans’ top score was reinforced by the answers to follow-up questions that asked consumers about the characteristics they appreciated most about these leading supermarkets, such as high-quality produce, courteous staff, cleanliness and inviting atmosphere.
When looking at mass grocers such as Walmart, Sam’s Club, Target and Costco, Market Force found similar results. While Walmart garnered the highest number of total votes, with 42 percent of the total, its store count must also be factored in. When re-indexed based on the number of stores, Costco took the lead. Like Wegmans, that lead is substantiated based on the consumer ranking of mass grocers against the attributes they care about most. Costco scored highest on 12 of 16 attributes, and tied for first for the remaining four. For more information visit www.marketforce.com.
TV trumps online, radio and print mediums for ad campaign impact
Are television ads more impactful and memorable than their radio, online and print counterparts? Data from Innerscope Research Inc., Boston, on behalf of the Television Bureau of Canada (TVB), Toronto, suggests that may very well be the case. Innerscope’s biometric and eye tracking study revealed television spots were more effective at generating high emotional engagement and aided next-day recall than online video, online display, radio and newspaper. The study observed 100 male and female participants ages 18-49 as they experienced ads within each of these media environments.
Results showed that television ads delivered three times more high emotional engagement and three times higher aided next-day recall than radio ads; 1.8 times more high emotional engagement and 1.4 times higher aided next-day recall than online video ads; five times higher aided next-day recall than online display ads; and 5.5 times more total emotional engagement and comparable aided next-day recall than newspaper ads.
TV ads were viewed within a 30-minute episode of Two and a Half Men; radio ads were heard while listening to 15 minutes of Toronto’s CHUM FM during a virtual drive; online ads were viewed while surfing msn.ca for 15 minutes; and newspaper ads were viewed while reading the Vancouver Sun’s Life section for 30 minutes. For more information visit www.innerscope.com.
Americans going green, paying a premium for it
Even in the midst of our Great Recession consumers haven’t entirely abandoned their efforts to be environmentally-conscious, even if that means paying a few more dollars for the greater good. Many consumers are still willing to pay more for a variety of green products, and 90 percent of respondents have incorporated some level of greenness into their daily lives, according to Burlington, Mass., research company Burst Media.
Few (8.8 percent) are 100-percent green, and most are aspirationally-green - having incorporated a few green behaviors into their daily life. To help lead green lives, respondents cite the Internet as the best source of information on green products and practices.
Consumers are willing to pay a premium for products they know are made out of green or environmentally-friendly, organic materials. Not surprisingly, aspirationally-green and 100-percent-green consumers are the most willing to pay a premium. The aspirationally-green consumers are most willing to pay a premium for food and household products they know to be green, including produce (66.6 percent), juices and other bottled drinks (61.1 percent), household cleaners (59.2 percent), laundry detergents (58.7 percent) and packaged food (58.2 percent). Meanwhile, among the 100-percent-green respondents, over 80 percent are willing to pay a premium for all product categories, including food, garden/landscaping supplies (84.4 percent), home improvement supplies (84 percent), bedding (83.3 percent) and health and beauty products (82 percent).
More than one-third of respondents cite the Internet as the best source of information on green products and practices, followed by television (18.4 percent), friends and family (9.2 percent), newspapers (7.1 percent), magazines (6.5 percent) and books (4.6 percent). While men search for information on alternative energy and green technologies, women look for healthy recipes, recycling, simple living and natural remedies.
More than half of all respondents believe to some extent advertising claims that promote a product as green or environmentally-friendly. However, one-quarter do not believe the claims or find them confusing or misleading and one out of 10 respondents say they never believe green claims made in an advertisement. Two-thirds of aspirationally-green respondents believe green claims in advertising, compared to 58.2 percent of 100-percent-green respondents and 32.3 percent of respondents who are not green at all. Interestingly, women in all key age segments are more likely than men to purchase a product that is advertised as being green or environmentally-friendly. However, men still lead women for being completely green, 12.1 percent vs. 5.3 percent, respectively.
Interestingly, there is a distinct difference in the motivation to go green between aspirational greens and those self-identified as 100 percent green. While aspirational greens clearly point to working for a better environment (61.3 percent) as the reason for incorporating green behaviors into their daily lives, only 38.1 percent of 100 percent greens point to this cause. Among 100-percent-green respondents, reasons include living a better quality of life (36.6 percent), good for the community (35.4 percent), desire to make a difference (32.9 percent) and setting an example for others to follow (31.5 percent). Among this segment, being green identifies a lifestyle rather than personal activity. For more information visit www.burstmedia.com.