Newspapers - in some form - still part of most Americans’ lives
Rochester, N.Y., is the top U.S. city for newspaper readership, and a higher percentage of adults in Rochester are reading newspapers in print or online than in any other U.S. market, according to Integrated Newspaper Audience (INA) data from Scarborough Research, New York. The INA of Rochester is 87 percent, meaning that 87 percent of adults in the Rochester area read a printed newspaper, a newspaper’s Web site or both during the past week.
Following closely behind are Cleveland and Buffalo, N.Y., each with an INA of 86 percent. In the 81 local markets measured by Scarborough, 75 percent of adults read the newspaper weekly in print or online.
“This data begs the question: Is the constant negative news feed on the industry warranted when newspapers are actually being read by three-fourths of the adult population? When you look at audience data, it seems irrational that advertisers are leaving newspapers because the numbers speak for themselves,” says Gary Meo, senior vice president, print and digital media, Scarborough Research. “If you are an advertiser seeking to reach a large, upscale audience, newspapers are among the most effective media for doing so. Further, readership rates vary market by market and frequently defy local generalizations about declining audience. In order to obtain an accurate, in-depth portrait of newspaper health, in print and online, one needs to drill down to this local level.”
More than half of the adult population reads the newspaper, even in those cities with lower-than-average INA. For example, in Bakersfield, Calif., and Las Vegas (the two lowest-ranking markets for INA), 59 percent of the adult population read a printed newspaper, a newspaper’s Web site or both during the past week. For more information visit www.scarboroughresearch.com.
Bilingual Hispanics pick and choose best of both worlds
U.S. Hispanics, regardless of whether their language preference at home is English (43 percent) or Spanish (52 percent), are turning to both languages to meet their needs. Mixing languages does not complicate the lives of U.S. Hispanics who are living with ease in both worlds. Hispanics’ skill to utilize either language is an advantage in functioning in U.S. institutions while preserving their Hispanic heritage. When Hispanics turn on their televisions over half of them are tuning into an English-language program, according to an Ipsos U.S. Hispanic Omnibus study conducted by Paris research company Ipsos.
Younger viewers are not the dominating presence in front of the English-language small screen. Hispanics age 18-34 are actually less likely (54 percent) than older Hispanics (age 55+) to prefer English-language television (61 percent), and 52 percent of Hispanics age 35-54 prefer English-language television. While 45 percent of Hispanics with children in the household say that they prefer Spanish-language television, 63 percent of Hispanic households without children are highly likely to prefer English television. Eighty percent of college-educated Hispanics prefer English-language television.
Fifty-five percent of all Hispanics said that their language preference for the Internet is English, but 39 percent of Hispanics age 18-34 prefer Spanish-language Internet sites. Forty-two percent of Hispanic females prefer Spanish when surfing the Web compared to just 29 percent of Hispanic men.
Fifty-three percent of Hispanics read the news and they are looking for information in both languages. Of that 53 percent, 53 percent read the news in English to find out the current affairs in their local U.S. city and 33 percent in Spanish to follow up with the news in their home country. Forty-four percent read Spanish newspapers that cover news in their community in the U.S. For more information visit www.ipsos-ideas.com.
HSA consumers track health expenses and get involved
Consumers who have health savings account (HSA) plans are more cost-conscious and engaged consumers than enrollees in other traditional health insurance plans, according to a survey conducted by the Chicago-based Blue Cross and Blue Shield Association (BCBSA). The 2008 Consumer Driven Health Plan (CDHP) Member Experience survey found that 72 percent of HSA owners track their health expenses, compared with just 40 percent of their non-CDHP counterparts. In addition, 38 percent of HSA owners estimate future health expenses, compared with 22 percent of non-members; 24 percent of HSA owners contacted their insurer to discuss health expenses, compared with 18 percent of non-members; 38 percent of HSA owners discussed health expenses with their physicians, compared with 27 percent of non-members; and 34 percent of HSA owners developed a budget for health expenses, compared with 18 percent of non-members.
HSA owners are also more engaged in health and wellness. For example, 43 percent of HSA owners participated in health screenings, compared with 30 percent of non-members. In addition, 25 percent of HSA owners reported exercising regularly, compared with 14 percent of non-members.
CDHP members with HSAs are more likely to access preventive care services than are CDHP members without such accounts or non-CDHP members. For example, 69 percent of HSA-eligible CDHP plan members with HSAs had regular checkups, physicals or preventive health screenings, compared with 64 percent of HSA-eligible CDHP members without HSAs and 62 percent of non-CDHP members.
CDHP members with employer-sponsored coverage are much more likely to open HSAs when their employers contribute to the accounts. Seventy-one percent of members who received some employer contribution either have already opened or plan to open an HSA, compared with 48 percent of CDHP members who did not receive an employer contribution to the accounts. For more information visit www.bcbs.com.
Consumers spending less on prescription drugs
Consumers say they are spending an estimated 3 percent less on prescription drugs in 2009 versus 2008 thanks, in part, to the economic downturn, according to Kurt Salmon Associates (KSA), a New York consulting firm. The decline is likely the result of a continued shift toward lower-cost generic drugs and an increasing number of consumers who are looking to save money by self-prescribing or simply reducing overall drug consumption. KSA’s analysis suggests that retailers that can manage consumers’ perceptions of price - as much as price itself - are the most likely to be successful in the prescription drug category.
For example, many retailers have adopted discount and generic drug programs, and retailers with a value orientation are winning the share war in this economy. Wal-Mart has been the most successful at marketing its discount drug offering and grew its customer base 9 percent over the past year. The share gains for value-based retailers come at the expense of the stores that consumers perceive as having higher prices. Rite Aid lost a disproportionate amount of market share to Wal-Mart (approximately 2 percent over the past year) because consumers believe it has higher prices. Consumers give Target high price-to-value scores.
Prescription drug users are increasingly price-sensitive. In January 2009, 20 percent of prescription drug consumers cited price as a reason for switching retailers, up from 16 percent in 2008. Yet despite the increasing importance of price perception, location remains the No. 1 reason why consumers choose a particular retailer for prescription drug purchases. Walgreens and CVS continue to maintain share based primarily on convenient locations.
Price-sensitive consumers are responding to discount prescription drug programs. More than half (57 percent) of Wal-Mart pharmaceutical shoppers cited the retailer’s $4-generic-drug program as a main reason for their choice of retailer. For more information visit www.kurtsalmon.com.
ED pill takes top honors as most-recalled drug ad of 2008
Indianapolis pharmaceutical company Eli Lilly produced three of the top four most-recalled prescription drug and vaccine ads on TV last year. Cialis was the most often-recalled new pharmaceutical ad in 2008, recalled by viewers at a rate 55 percent greater than the average based on all new prescription drug ads launched over the past year, according to data from New York researcher The Nielsen Company. The erectile dysfunction drug ad features a couple interrupted from an intimate moment by a surprise visit from their daughter.
“Prescription drug and vaccine advertisers have learned to adjust to the obstacles that they encountered back in 2007,” says Fariba Zamaniyan, senior vice president of the health care practice at Nielsen IAG. “They’ve found a way to deliver more memorable ads that resonate with the audience.”
An execution for the antidepressant drug Cymbalta was the second most-recalled pharmaceutical ad of 2008, with a creative extending from its “Depression Hurts” campaign. The ad indexed at 151, meaning it was recalled 51 percent more often than the average prescription drug ad. Another Cialis spot - featuring a man and woman seated on an elevated spot overlooking a beach - placed fourth with an index of 127. Loestrin24 Fe, a birth control pill manufactured by Warner Chilcott, was the only non-Eli Lilly drug ad to break into the top four, with an index of 143. For more information visit www.nielsen.com.
Health coverage is important but doesn’t trump cable
While some Americans are tightening their belts, not everyone is prepared to make the financial sacrifices required to keep their health insurance coverage. Only about half of Americans would be willing to cut back on certain expenses such as cell phone payments (53 percent) and cable TV (49 percent) in order afford health insurance, according to a consumer survey conducted by Kelton Research, New York, and commissioned by insurance provider eHealthInsurance, Mountain View, Calif.
Almost four in five (79 percent) of those with employer-provided health insurance would be more willing to cut back on or give up their vacation time than their health insurance coverage. Just four in 10 would be willing to pay $200 or more per month to insure themselves or their family if they lost their current jobs. Those currently covering three or more people on their health plan would be willing to part with about $318 per month for insurance if they found themselves unemployed, compared to an average of $169 for Americans covering less than three people if they were to find themselves in the same situation.
Four out of five (81 percent) employed Americans are not feeling extremely confident about job security, and, if they were to lose their job, many are not prepared for the health insurance costs awaiting them. Additionally, 34 percent who are employed right now think they’re more likely to lose their job than get a raise in the next year. Almost two in three respondents predict they’d be unable to afford health insurance for longer than six months, if at all, if they lost their jobs and had to use their current savings. Thirty-two percent admit they wouldn’t be able to afford it at all.
Driving this consumer sentiment is an awareness gap between the perception and reality of employer-based and individual health insurance costs: almost two in three (64 percent) who are covered through their jobs have no idea what their employers contribute towards their health insurance on a monthly basis; another 27 percent of insured Americans don’t even know how much they pay themselves in an average month for health insurance; just 26 percent are aware that private health insurance is typically less expensive than COBRA coverage; one in two Americans with insurance doubt that if they lost their current coverage they’d be able to find similar coverage with another plan; and if they had to apply for a new health plan for any reason, the average insured American estimates a 31 percent chance they’d be declined. For more information visit www.keltonresearch.com.
Almost everyone buys off-brand something
Rich or poor, private-label items are common in almost every single American home. Ninety-seven percent of all households consume private-label foods on a regular basis. And American households earning less than $30,000 and those earning over $70,000 shop generic brands alike; in fact, households earning over $70,000 buy private-label items 3 percent more than households earning less than $30,000 (33 vs. 30 percent).
Tough economic times have certainly been a boon for private-label foods and beverages, but according to Port Washington, N.Y., research company The NPD Group, private-label usage has been growing over the last decade. In 2008, 24 percent of all food and beverages served in American homes were store brands, up from 18 percent in 1999.
“There is no question that private-label foods have become an integral part of American life,” says Harry Balzer, chief industry analyst at NPD and author of the Eating Patterns in America study. “Furthermore, we do not hide private-label foods as an ingredient or as an additive to another dish. Today over half of all store-brand food eatings are the end dish.”
Price and value are the chief reasons why consumers purchase private-label or store brands, but most respondents also feel that the quality of store brands is often equal to, or in some cases better than, name brands. For more information visit www.npd.com.
Asian-Americans strive for increased representation
Despite a positive trend in attitudes toward Asian-Americans, the majority of the general population cannot make a distinction between Chinese-Americans and other Asian-Americans; and 28 percent or more say they rarely or never interact with Asian-Americans, according to Still the “Other?”: Public Attitudes Toward Chinese and Asian-Americans, a study conducted by Rochester, N.Y., research company Harris Interactive on behalf of the Committee of 100, a New York organization of Chinese-Americans.
Among the general population, 45 percent believe Asian-Americans are more loyal to their countries of
ancestry than to the U.S., up from 37 percent in the 2001 survey. In contrast, approximately three in four of the Chinese-Americans surveyed say Chinese-Americans would support the U.S. in military or economic conflicts, compared to only approximately 56 percent of the general population who agrees.
Thirty-six percent of the general population thinks that Asian-Americans have the right amount of political power and influence in Washington, D.C., while only 15 percent of Chinese-Americans believe this to be true. However, 47 percent of the general population believes that Asian-Americans have too little power in Washington, with 82 percent of Chinese-Americans agreeing.
Sixty-five percent of the general population believes Asian-American students are adequately represented on college campuses, with 45 percent of Chinese-Americans agreeing and 36 percent arguing that they are underrepresented. In reality, there are only 33 Asian-American college presidents in the U.S. (out of about 3,200) and, while analysis shows that among the top sector of higher education institutions (as listed in U.S. News & World Report’s 2005 rankings) Asian-Americans are well-represented as students (6.4 percent) and faculty (6.2 percent), only about 2.4 percent are represented in the positions of president, provost or chancellor.
Similarly, while Asian-Americans hold only about 1.5 percent of corporate board seats among Fortune 500 companies, 50 percent of the general population believes Asian-Americans are adequately represented on corporate boards, while only 23 percent of Chinese-Americans agree. Forty-six percent of the general population also believes Asian-Americans are promoted at the same pace as Caucasian-Americans, with only 29 percent of Chinese-Americans saying the same. For more information visit www.committee100.org.
Hotels - more than a place to rest your head
The needs, wants and expectations of travelers are going nowhere but up, and hoteliers would be smart to take note. From information on the hotel being made available before booking to the extra exfoliating bar of soap in the shower to throw in as a take-home item, research shows that when it comes to the travel experience, choosing and staying at a hotel is far more complicated than finding a soft place to land.
When looking for a hotel, most people (46 percent) do a little research, finding a few comparable choices and selecting the most suitable. But one in 10 simply choose the first OK one that they find. And how are those who research researching? Twenty-nine percent of potential guests use a hotel Web site more than any other research tool, topped by the French at 55 percent, according to a study from Chicago research company Synovate. The second most-popular choice lay with the 20 percent who ask colleagues, friends or relatives about hotels. This word-of-mouth approach was especially popular in the two Southeast-Asian markets surveyed (42 percent in Indonesia and 35 percent in Malaysia use this more than any other research technique). Seventeen percent of respondents primarily use review sites, led by 54 percent of Japanese respondents.
An overall 47 percent make sure a hotel caters to their technology needs before they book it and agree that technology is important in selecting a hotel. And there is a gender difference on this attribute, as 50 percent of men agreed and 44 percent of women. The highest agrees were found in Brazil (68 percent) and Malaysia (64 percent). The lowest agrees were France at 32 percent and Japan at 36 percent.
Seventy-two percent of all respondents agree that a bad hotel experience can ruin an entire trip, led by France (83 percent), Japan and Hong Kong (both 79 percent), the U.S. (76 percent) and the United Arab Emirates (75 percent). Eighty-five percent agree they will tell others about a bad experience, led by France (97 percent), Canada (96 percent), Hong Kong (94 percent) and the U.S. (93 percent). But in better news for hoteliers, 90 percent say they will tell others about a good experience, sharing the inside scoop with their friends and family. There was almost universal agreement with this from France (97 percent), Canada (96 percent), Brazil (96 percent) and the U.S. (95 percent).
Some guests arrive at a hotel, dump their bags and make a beeline for the bathroom to check out the nature and breadth of the toiletry samples. And it turns out that this is not so unusual - half of all American hotel guests are taking toiletries, no questions asked. When asked to explain their feelings about toiletry samples, an overall 26 percent of survey respondents said “They are yours; they are part of the experience.” This was led by the U.S. (49 percent), Japan (43 percent) and France (41 percent), in each case with more women than men agreeing. However, despite the growing acceptance of toiletry-ownership, the overall most-popular approach remains to simply use what you need during the stay and leave the rest. Half of all respondents do this, led by Indonesians (65 percent), Malaysians (58 percent) and Hong Kongers (54 percent). The survey also found that 9 percent of respondents agreed with “You love taking them with you but always feel a shade guilty.” French women most-often selected this, with 21 percent feeling slight remorse about pilfering products. For more information visit www.synovate.com.