Gen Y turns to the Web with medical questions
Think it’s only Baby Boomers visiting health and wellness resources online? Over 50 percent of young people ages 13-24 are accessing health and wellness information on the Internet. Youth are also using confessional sites and posting anonymously on message boards to get personal advice more often than traditional support services such as phone hotlines, according to a national survey conducted by Ypulse, a Chicago research company; YouthNoise, a San Francisco young-leader support organization; Internet Sexuality Information Services Inc. (ISIS), an Oakland, Calif., nonprofit; and Peanut Labs, a San Francisco research company.
“Youth have always gotten information about sensitive and personal health issues from their peers,” says Deb Levine, executive director, ISIS. “What’s changed today is that they’re communicating with their peers online within their social networks.”
WebMD was cited by 15 percent of respondents, making it the most popular site among young people who say they use the Web for information about health and wellness. More young people, in fact, refer directly to WebMD rather than use search engines to research health and wellness issues. Of the 17 percent of respondents who reported visiting online confessional sites or message boards to share personal information, 87 percent considered the experience a positive one.
Across the board, respondents cited STDs/HIV and drugs/substance abuse as their top health concerns, while issues related to the Internet, such as cyber-bullying, ranked low on their list of concerns.
Asked what they would want from a health and wellness-related Web site, young respondents said “both accurate, accessible information and a community where users can interact and obtain personal support from both peers and professionals.” Being fun and interactive, safe and anonymous are also qualities that young people are looking for in a good information site, according to the survey results. For more information visit www.isis-inc.org.
Mobile marketing recipients want personalized promotions
Mobile/SMS marketing recall rates are high compared to other forms of media, according to The 2008 Mobile Response Survey, sponsored by HipCricket, a Kirkland, Wash., mobile marketing company. Of the respondents who received mobile marketing messages within the past year, more than half recalled at least one brand. Further, 96 percent remembered the promotion’s call-to-action, and more than one-third reported that the promotion made them more likely to buy the brand’s product or service. Thirty-seven percent told a friend about the message, and 6 percent forwarded the promotion to a friend.
The survey also found that 58 percent of consumers are interested in receiving mobile coupons and nearly 40 percent would be willing to receive location-based, time-related offers and coupons (e.g., a pizza coupon during the commute home from work). Forty-seven percent of those surveyed said if they received a mobile coupon it would be likely or very likely that they’d redeem it, with 70 percent of those respondents expressing interest in redeeming mobile coupons both online and in-store.
Consumers said they would also use their mobile phone to locate a store or restaurant (39 percent), enter a contest (28 percent), download a ringtone or wallpaper (27 percent), visit a mobile Web site (20 percent), sign up to receive future offers and promotions (14 percent) and view nutritional facts while at a restaurant (13 percent). More than half of respondents never access the mobile Web, and only 5 percent would use their phone to click on a mobile ad.
Consumers are most interested in receiving messages on their mobile phones regarding food and beverage (51 percent), entertainment and media (40 percent), retail (24 percent), apparel (23 percent) and mobile carriers (21 percent). For more information visit www.hipcricket.com.
Video gaming culture moves out of the basement
While video gaming has in the past been stereotyped as a solitary activity, statistics point to the fact that video gamers are now more likely than non-gamers to play sports, attend a concert or even go out on a date. In addition, video game players may be evolving into a surprisingly diverse crowd, with the average age of gamers now topping 30 and more than half of gamers married with kids, according to research from IGN Entertainment, a Brisbane, Calif., media company, and Ipsos MediaCT, a division of Paris-based research company Ipsos.
The study also identifies new segments of gamers - highlighting groups such as Social Troopers, Family 3.0, Weekend Warriors and Traditional Core - in order to specifically define usage habits, purchasing patterns and other aspects of the lives of video gamers. The segments also delve into media consumption, identify decision makers within households and generally break down the lifestyle interests of each group in order to define their value as consumers.
“This study looks at how video games and video gamers are breaking away from stereotypes that have been in place since Pong,” says Roy Bahat, general manager of IGN Entertainment. “This was more than a quantitative survey - we visited gamers in their homes and received feedback about how video games influence, enhance and affect their daily lives, familial relationships and friendships.”
So, are you game? According to the study, people from a diverse demographic set would answer this question in the affirmative. Fifty-five percent of gamers polled were married, 48 percent have kids, and new gamers (those who have started playing video games in the past two years) are 32 years old on average.
Both quantitative and qualitative evidence points to the increasingly social nature of video games. According to the research, more than 75 percent of video gamers play games with other people either online or in person. In addition, more than 47 percent of people living in gaming households said that video games were a fun way to interact with other family members. The study also indicates that gamers are actually more social and more active than non-gamers: Gamers were twice as likely to go out on dates as non-gamers in a given month. In addition, gamers were 13 percent more likely to go out to a movie, 11 percent more likely to play sports and 9 percent more likely to go out with friends than non-gamers.
Gamers have not only become more social, but they have also surpassed non-gamers as pop culture influencers, especially in terms of television and movies. According to the data, 37 percent of gamers said friends and family relied upon them to stay up-to-date about movies, TV shows and the latest entertainment news, compared to only 22 percent for non-gamers. The data also points to gamers as early adopters of technology and gadgets, with 39 percent indicating that friends and family rely upon them to stay up-to-date about the latest technology.
Gamers have evolved not only in terms of demographics and activities, but also as consumers. In terms of hard dollars, the average gaming household income ($79,000) is notably higher than that of non-gaming households ($54,000), but the value of the gamer as a marketing target can be seen in a variety of ways. As early adopters, gamers have also shown a willingness to pay extra for the latest and greatest. Gamers are twice as likely as non-gamers to buy a product featuring new technology, even if they are aware that there are still bugs. Gamers are also twice as likely as non-gamers to pay a premium for the newest technology on the market. Gamers also consume media in different ways than non-gamers, with hard-core gamers spending - per week - five more hours on the Internet, two more hours watching television and two more hours listening to music than non-gamers. For more information visit www.ipsos-na.com.
Shaken consumers want to spread bank assets around
Personal insecurity was an undercurrent of third-quarter interviews in the National Consumer Banking Study conducted in September by Omaha, Neb., research company The MSR Group. Twelve percent of U.S. consumers reported they are likely to move existing accounts to a different financial institution within the next 12 months. Sixteen percent cite market uncertainties and the stability of their bank as a reason to move accounts, and another 9 percent say they don’t want all their money in one bank.
According to the 2008 Independent Community Bankers of America (ICBA) Community Bank Technology Survey, 89 percent of community banks maintain an Internet banking site that allows their customers to conduct banking transactions, up 6 percent from 2006. Consumer use of online banking has increased 11 percent during this same period of time. However, between first-quarter 2007 and third-quarter 2008, customer satisfaction scores related to online banking have declined an average of 4 percent.
The reason for the disparity may come as a surprise to many banks: online support. The MSR Group’s National Consumer Banking Survey consistently shows that customers find a lack of online support to be a major dissatisfier. Yet results of the ICBA study show that 56 percent of banks have no interest in offering a customer service FAQ area on their Web site, and 84 percent have no interest in offering live chats with customer service representatives.
According to a study conducted for the ICBA, mobile banking tops the list of technologies banks plan to implement in the next 24 months, while another three are related to online banking services. Sixteen percent of consumers nationally have considered switching to another bank but have not done so. When asked why they decided to stay, the hassle of switching was the most commonly-cited reason. Having multiple connections to a single bank, in the form of Internet banking, automatic deposit and bill-pay setup, makes moving accounts more difficult. While multiple connections to a bank will delay defection for a period of time, there will come a point when frustration with multiple facets actually encourages leaving. Inconvenience is trumped by wide-ranging dissatisfaction.
Other findings from survey include: When compared to other financial institutions, slightly more than half (only 56 percent) of consumers rate service at their bank as excellent; only half of all customers rate the convenience of branch hours as excellent; nearly two in every 10 customers say they waited 5 minutes or longer during their last branch visit - a wait most of these customers consider unreasonable; while use of online banking continues to increase, ratings of online support services is on a downward trend; consumer ratings of ATMs have declined an average of 3.5 index points since first quarter 2007; two in five consumers reporting to be very or somewhat likely to switch banks would do so simply for lower fees and/or more favorable interest rates. For more information visit www.themsrgroup.com.
Age is just a number, especially online
Marketers targeting consumers based on their chronological age instead of on their engagement and participation in youth culture may be missing out on 25-34-year-olds, a group often overlooked as part of the youth market, according to the Golden Age of Youth, a study from Viacom Brand Solutions International (VBSI), a London brand-focused sales house.
Kevin Razvi, executive vice president and managing director of VBSI, says, “People are trying to stay younger for longer ... 25-34-year-olds are continuing to consume music, gaming and the Internet and are enjoying the pursuits of their younger years. We need to rethink what ‘youth’ actually means and how to approach this constantly-evolving group of people.”
Though those age 25-34 remain youthful, there are some important differences among them and their younger and older counterparts. The study identified three distinct stages of youth: Discovery (16-19 years old), Experimentation (20-24 years old) and Golden (25-34 years old). Goldens are happier and more confident/secure, and they gravitate toward premium, understated and often luxurious brands and experiences to affirm their identity. In contrast, those in the Discovery group are focused on material gain and employ brands to define their identity.
Goldens are most likely to agree that they are happy or content with their personal life and are 24 percent more likely than teens to agree that they love life. More than 80 percent of the global respondents say that the 20s should be about exploring life and having fun.
Teens feel pressured to figure out who they are and where they are going and are 23 percent more likely than those 25-34 to agree that their life is more stressful. This is particularly true in Europe and in the U.S. Seventeen percent of the global sample who said they had made some major decisions in life too early were the most unhappy and stressed group of 25-34-year-olds among all the respondents.
Traditional adult brands can adopt a more youthful tone to avoid being seen as irrelevant, according to the study. Twenty-three percent of the 25-34-year-old global sample feels that financial institutions are aimed at those older than they are, though youthful brands have a new market beyond the core teenage target. In the traditionally-young area of technology, one-third of 25-34-year-olds agree they’re really interested in new technology, and 66 percent say that they take the time to learn how things work to get the most out of them.
The study also found that from a global perspective, 25 is the ideal age overall. Other key findings include: Respondents age 25-34 who are married are significantly more likely to be happy (66 percent) compared to singles (30 percent); only 36 percent of Europeans and 39 percent of Asians age 25-34 feel like they’re struggling with their current financial situation compared to 55 percent in Latin America and 51 percent in America; 71 percent of 25-34-year-olds agree they feel comfortable with who they are, and those who feel most settled with their identity live in Mexico (84 percent), India (83 percent) and Saudi Arabia (82 percent); those who are least comfortable are the Japanese (26 percent); 35 percent of Europeans would find it strange if someone got married in their early 20s compared to only 20 percent of Americans and 18 percent of Japanese; in general, 78 percent of 25-34-year-olds are optimistic about their future, and this is highest in Latin America (85 percent), lowest in Asia (67 percent) and the U.S. (72 percent); 62 percent of Latin Americans felt they made life decisions too early compared to only 24 percent Japanese, 37 percent of Europeans and 50 percent of Americans. For more information visit www.viacombrandsolutions.co.uk.
Consumer misconceptions can cause risky online behavior
Eighty-two percent of consumers are concerned about their credit card numbers being stolen online, while 72 percent are concerned that their online behaviors are being tracked and profiled by companies. Although 68 percent of consumers have provided personal information in order to access a Web site, 53 percent are uncomfortable with Internet companies using their e-mail content or browsing history to send relevant ads, and 54 percent are uncomfortable with third parties collecting information about their online behavior, according to a poll released by the Consumer Reports National Research Center, Yonkers, N.Y.
The poll revealed that 93 percent of Americans think Internet companies should always ask for permission before using personal information, and 72 percent want the right to opt out when companies track their online behavior. Thirty-five percent use alternate e-mail addresses to avoid providing real information. Twenty-six percent have used software that hides their identity, and 23 percent have provided fake information to access a Web site.
Consumers are aware that information about their surfing habits is being collected online, but many are not aware of what companies are able to do with their information. Among the other findings of the poll, 61 percent are confident that what they do online is private and not shared without their permission. Fifty-seven percent incorrectly believe that companies must identify themselves and indicate why they are collecting data and whether they intend to share it with other organizations, and 48 percent incorrectly believe their consent is required for companies to use the personal information they collect from online activities. Additionally, 43 percent incorrectly believe a court order is required to monitor activities online. For more information visit www.consumerreports.org.
Top trends for 2009: take control, keep it simple
Around the world, people have been shaken into uncertainty by the economic crisis. But the November U.S. presidential election has given rise to feelings of hope and optimism. Chicago research company Mintel sees five major ways that consumers will adapt and make the best of 2009. As a backlash against the fast pace of the modern world, people will try to take greater control of their lives and find pleasure in the simple things. Faced with financial insecurity, shoppers will seek out businesses and products they feel they can trust. And although they will cut back on spending, people will continue to treat themselves to little luxuries and fun activities.
Over the years, people have become more confident and demanding about how they live their lives and spend their money. Even as a recession hits, they’ll want to stay in control of their choices wherever they can. Consumers will seek out products and services that give them exactly what they want, when they want it, especially as their budgets tighten. And the Internet will be key. It shows people every option available and gives them the power to demand more while also allowing them to influence others through user reviews and feedback.
Manufacturers will respond with products that suit people’s specific needs and lifestyles. “Those companies that give consumers precisely what they want or give them the freedom to customize their purchases will do well. Companies that fail to do this will see consumers walk away,” says Joan Holleran, director of research at Mintel. In addition, Baby Boomers will be of particular interest to businesses. Companies will move beyond traditional “old age” products and services to ones that embrace the active, healthy lifestyles of many older consumers.
Faced with fast-paced modern life, many people will value convenience and simplicity. As people take control of their everyday lives, they will also demand that companies communicate with them honestly and openly. From understandable ingredients to clear company practices, consumers will want transparency when it comes to the products they buy. Old-fashioned skills such as cooking at home, sewing and gardening will become increasingly popular. As an added benefit, these home-based activities will also help people stretch their budgets further.
As consumers look for more authentic, easy-to-understand products, companies will market their brands in a simpler, more direct way. Fresh, clean and pure will become essential values, as manufacturers focus on clear ingredient labels and product positioning. Additionally, with people staying in their homes to save money, companies will create better products for dining, relaxing and entertaining at home.
Today’s consumers have high standards and will demand value for money, as well as consistently high levels of quality, safety and service. Crumbling economic markets, food scares and toy safety problems have fueled an era of doubt and insecurity. And so in the coming year, people will seek out trusting, open relationships wherever they can. People will want to know all about the products they buy, from where they were sourced to how they were manufactured. Because of this, people will cling to the long-standing, nostalgic brands they know and love, looking for products with a real sense of familiarity.
For many companies, especially those in the finance sector, the road to rebuilding trust with consumers will be long and difficult. But it will be a priority. Manufacturers will need to back up their words with actions and conduct business in a more open, honest way. Reassuring consumers that they are acting in the customers’ best interest will become a primary concern for businesses. Also, as companies see shoppers sticking to already-familiar products, long-standing brands will move into new markets to exploit their position as trustworthy companies.
As purse strings tighten, consumers will look for every possible way to make their pennies stretch further. For example, people will trade down to cheaper store brands, eat out less or simply choose not to update their wardrobes. But everyone will still crave a little treat now and again. The result? Shoppers will likely trade down to budget-friendly solutions to save money. But occasionally, they will also need to indulge in small, affordable luxuries, like premium chocolate, designer sunglasses or a favorite moisturizer.
As consumers split between the low and high end of the market, manufacturers will invariably follow suit. Many companies will start to focus on value brands, but there will still be room for products that bring a little luxury to the everyday. “The middle market will increasingly be squeezed and is going to have to prove its worth when faced with competition from newly-improved basic lines,” says Holleran. Beyond this, many companies will position their products as a more-affordable alternative to going out. For example, expect premium ready-meals that give a restaurant experience at home or beauty products that bring a spa-like feel to the bathroom.
In tougher times, people not only crave life’s little luxuries, they also need to enjoy themselves. Small, playful distractions such as neon makeup, fun-to-eat food or interactive stores like Apple will gain popularity as people look to let their hair down and have some fun.
Companies will focus on products and experiences that are light-hearted, and those that offer real entertainment will have a significant competitive advantage. Beyond this, manufacturers will launch products specifically designed to enhance people’s moods in unique ways. From food and beauty to household cleaners, Mintel expects to see a widening range of products that soothe, energize or simply lift the spirits. For more information visit www.mintel.com.