Health benefits loom large for workers
As Congress works to make health insurance portable - breaking the link that exists for many Americans between health care coverage and employment - a national study by St. Louis-based Aragon Consulting Group shows that nearly 83 percent of Americans take their employer-provided health benefits into account when considering a job change.
The study showed that on a scale of one to seven, with seven being complete agreement, 47.8 percent of those surveyed agree completely that lawmakers should mandate insurance companies to sell policies to all individuals regardless of pre-existing health conditions. Only 8.7 percent disagree completely. "We found that the number of people who favor such legislation declines, however, as they realize it will increase their insurance premiums," says Gary Miller, president of Aragon Consulting Group.
"For instance, when told their premium might increase 3 percent [as the American Academy of Actuaries has suggested] the percent of respondents who agree completely that insurers should have to sell individual policies without discrimination drops to 38.2 percent. This added information had virtually no impact on those who disagree completely.
"Only 17.6 percent agree completely with the mandate if costs increase 10 percent - the minimum projected by the Health Insurance Association of America - while the number of individuals who disagree completely climbed to 29.4 percent," says Miller.
More than 66 percent of the insureds who participated in the study obtain their coverage through their employer and of those enrolled in employer-provided plans, 46.6 percent report that their employer offers more than one policy from which they can choose their coverage.
In fact, 63 percent of individuals enrolled in an HMO have more than one employer-sponsored plan from which to select their coverage. That is higher than those using a PPO -43 percent - or a conventional health plan - 42 percent.
More than 37 percent of the respondents indicate that they do not currently pay a monthly health insurance premium. However, for those who do, the average monthly premium for individual policies ($412.78) is more than double that of group policies ($149.24).
Contrary to a recent Blue Cross study that showed 45 percent of employees would switch to a medical savings account (MSA) plan if given the chance, the Aragon survey found that only 14.6 percent of the general population is extremely interested in such an opinion, while 29 percent is not interested at all.
Likewise, nearly 30 percent strongly oppose any legislation that will eliminate employer-provided insurance and build in a transition enabling individuals to shop around and buy policies, as has been proposed by some health experts.
Only 16.3 percent of those who participated in the Aragon study recall any situation in which they or a member of their family experienced any difficulty in obtaining health insurance or been refused coverage.
"Although more than half of those surveyed are enrolled in employer-sponsored health plmas, the study found that most people are at least moderately satisfied with their coverage," says Miller. "However, only 40.4 percent say that their insurance meets all of their needs; 50.5 percent say it meets some of their needs; and less than 1 percent say the insurance meets none of their needs."
On a scale of one to seven, with seven being completely satisfied and one being completely dissatisfied, 32.4 percent respond that they are completely satisfied with their health plan and 75.7 percent are at least moderately satisfied, while less than one percent say they are completely dissatisfied. Those aged 55 and older who are enrolled in a conventional insurance plan are the most satisfied.
Only 17.8 percent of people between the ages of 18 and 34 indicate that they are completely satisfied with their health plan, as do 26.4 percent of people aged 35 to 54 and 50.3 percent of those 55 and older. Almost a fourth of those in an HMO and 26 percent of PPO members are completely satisfied, compared with 42.5 percent of conventional health policyholders.
In general, the study found .that Americans are highly satisfied (74 percent) with the selection of doctors available to them. However, the insureds are who are most likely to be completely satisfied are those with a conventional plan (76.5 percent). That is significantly higher than the ratings of those enrolled in an HMO (31.8 percent) or a PPO (44.2 percent). "These numbers may be attributable to the fact that nearly 60 percent of those surveyed think continuity of treatment from a care provider is important - a relationship that might be severed if they lose their job, change jobs or their employer changes insurance plans, forcing them into a managed care plan," says Miller.
Public uncertain about fat substitutes in food
While the Food and Drug Administration approved Procter & Gamble’s Olestra for use in snack foods January 30, the U.S. public has a "wait and see" attitude about buying foods and snacks containing fat substitutes, according to the findings of IssueTrack/USA, an ongoing study by Audits & Surveys Worldwide, New York. After interviewing a nationally representative sample of adults in February, ASW noted that a majority of Americans were aware of the issue of alleged health risks associated with fat substitutes, despite the fact that no products containing synthetic fats had yet reached store shelves. Even more Americans are aware of the risks associated with conventional fat and cholesterol in food and more are concerned about them.
"Based on media coverage and word of mouth alone, 54 percent of U.S. adults were aware of the alleged health risks associated with fat substitutes in food, even before products containing them had hit the market," says Barry M. Feinberg, senior vice president and director of ASW’s Public Policy Division. "Our data show that the public still needs more information about the issue to address their concerns. Right now, by a ratio of three to one, more Americans would be unlikely to buy food with fat substitutes than would be likely to buy them. While 30 percent say they are unlikely to buy products containing fat substitutes, resistance may diminish if the products pass the taste test and potential side effects are minor."
The public is more aware of the possible health risks of cholesterol and fat (75 percent) in food than of fat substitutes (54 percent) and more concerned about the risks of cholesterol and fatty foods (41 percent) than about fat substitutes (22 percent). Women are significantly more concerned about the risks associated with cholesterol and fat and fat substitutes than men. Thirty-two percent of males said they were concerned about the risks associated with cholesterol and fat, compared to 49 percent of women. Seventeen percent of men were concerned about fat substitutes; 28 percent of women expressed concern. Overall, consumers are as unlikely to buy foods containing fat substitutes as those high in cholesterol and fats. But among those aware of the fat substitute health issue, three times as many would not buy as would buy fat substitute products.
Researchers caught in the Net
Nine out of 10 market researchers in America now have a computer sitting on their desks. And they’re not just sitting there. The average researcher spends about 20 hours each week using the computer. These estimates were obtained by a mail survey of 228 researchers conducted by Survey Sampling, Inc., Fairfield, Conn., in November and December 1995.
The ubiquitous Internet has already enmeshed almost half of the respondents. Some 46 percent now have access to the Net at work and these busy folks spend about three hours each week on the Net, primarily for E-mail. Nearly one in four researchers visit the Web at work, while one in four log onto the Web at home.
Some 48 percent of research producers access the Net, slightly ahead of research sponsors (40 percent), though both groups use the Web about equally (26 percent and 28 percent respectively).
While almost every woman has a computer on her desk (versus 91 percent of men), males are more likely to use the Net (53 percent versus 39 percent female), surf the Net at work (33 percent male versus 19 percent female) and surf the Net at home (32 percent male versus 11 percent female).
Computer usage varies with Some 94 percent of researchers under 50 have computers. This percentage drops to 85 percent for those aged 50-59 and to 77 percent for those aged 60 or older.
Job function makes a difference, too. Net use is most popular among professors (83 percent) and project directors (71 percent), while account 24 executives (35 percent) trail the pack. Professors (58 percent) and marketing directors (42 percent) are the leading Web users at work.
The strongest demographic correlate is educational background. Net usage by educational level shows an almost linear trend: Ph.D. (71 percent), Master’s (51 percent), Bachelor’s (37 percent), some college (33 percent) and high school (17 percent).
Report explores African-American market
African-American spending power is growing at an impressive rate. In 1990, according to the census taken that year, U.S. blacks had a gross national income of $280 billion. By the end of 1995 the University of Georgia’s Selig Center for Economic Growth predicts that figure will have grown to $399 billion. African-Americans represent an untapped consumer market for a wide range of products and services, according to The African-American Market, a study by Packaged Facts, Inc., a New York research firm.
"The Million Man March served as a wake-up call in more ways than one," says Mary Ardagna, project manager, Packaged Facts. "The march sent a strong message to elected officials and the nation about civil rights and the continuing struggle for justice. It also broadcast a no less important message to marketers - through the sheer visual impact of seeing hundreds of thousands of working, middle-class black men - that not all African-Americans are poor."
There is no question that a disproportionate percentage of American blacks live in poverty. Non-blacks - including marketers - mistakenly assume that most blacks are poor. Although the average African-American family income after taxes falls well below that of whites, this discrepancy is not reflected in the spending of these two groups.
A black family making $30,000 or more a year is likely to spend the same amount of money as a white family in the $50,000+ bracket. As a group, African-Americans spend more on rent, clothing and on skin and hair care products. In fact, blacks make one-third of hair care product purchases and black women, while only 6 percent of the tota! U.S. population, account for 15 percent of cosmetics sales.
Blacks represent 12.7 percent of the U.S. population but 21 percent of girls between the ages of 4 and 9 are African-American. The U.S. black population is increasing at twice the rate of the white population. These girls will be the primary consumers for their own households in 20 years. Opportunities for sales are strong, but potential marketers need to look beyond statistics if they plan to approach African-American consumers as a group.
"Marketers make the mistake of approaching black consumers as whites with black faces," says Ardagna. "Using an occasional black model or superstar to endorse products isn’t enough to get black consumers to open their wallets."
In addition to the cultural nuances marketers must be sensitive to, marketers must be ready to pay back into the African-American community with jobs, grants, entrepreneurial oppommities and other contributions. "Community may be the key to this market," says Ardagna. "Black consumers don’t want to see their dollars being taken outside of the black community. They want to see blacks not just behind the cash register at their local stores, but in the manager’s office as well. African-American shoppers are enthusiastic in supporting companies that put something back in their community."
Seniors rate their favorite take-out foods
Take-out food sales may thrive on the hearty appetites and compressed schedules of young people, but the 50+ market also bears watching. Eighty percent of people age 50 and over buy take-out food each month, according to The Senior Panel, a survey conducted by Research 100, Princeton, N.J.
Men are more frequent purchasers of take-out food than women. Nationwide, chicken is the favorite take out food of the mature market. Pizza is number two and Chinese food and burgers tie for the third spot. While chicken is the first choice of the mature market nationwide, there are distinct regional favorites. The Northeast favors Chinese food while pizza comes up strongest in the Midwest. The salad bar is important in the South and Mexican food is mentioned only in the West.
"It makes perfect sense that the mature market would choose chicken over burgers," says Candace Corlett, president of the Research 100 division that conducts the Senior Panel. "When people hit their 50s they think about what they can do to stay healthy. Nutrition becomes more important and one of the first things to go is the double hamburger and fries. That doesn’t, however, mean that older diners are lining up at the salad bar!"
Corlett suggests that the arrival of 50-year-old baby Women Men boomers will quickly impact eat-in restaurant and take-out menus. "The boomers’ concern with good nutrition will only increase as they age. People in their 50s and 60s are important to the restaurant industry, and we see industry leaders already investigating how the aging of our society will impact their menus."
Information access draws users to Internet
In a survey of Interact users by Jaffe & Soeder, a Glendale, Calif., marketing communications firm, 70.4 percent said "easy access to information/being able to get the latest information" was the greatest personal and professional benefit of using the Intemet. "Fast/easy communication" was second at 33.8 percent, and exposure/promotion for their company came in at 31 percent.
Hispanic men looking forward to Olympic games
Four out of five Hispanic men (81 percent) surveyed by Market Development, Inc., a San Diego research firm, plan on watching the 1996 Olympics on television. As reported in MDI’s Hispanic Perspective newsletter, MDI surveyed 500 Hispanic men in five major Hispanic markets regarding their intention to watch the Olympics on TV. Of those who plan to watch and have a language preference, 56 percent said they will follow it in Spanish. Only 15 percent haven’t yet decided which language would give them better coverage of their preferred sports.
Hispanic men chose soccer as the most popular Summer Olympic sportto watch. Boxing placed second, followed by basketball, track and field, swimming, baseball and gymnastics.
Men’s most popular sport differed substantially by market. Soccer was the top choice in Los Angeles and Miami. Basketball was the number one preference in New York. Boxing was the favorite in San Antonio and track and field was selected first in Houston.
Preferences for certain sports also varied among U.S.-bom and foreign-bom Hispanics. Foreign-born Hispanics prefer to watch soccer three times as much as those bom in the U.S. Conversely, more than three times as many U.S.-born Hispanics expressed a preference for following track and field competitions.
Memberships in fitness facilities bulk up
Memberships and visits to fitness centers continued to increase during the first half of 1995 following a year of growth in 1994, according to a new survey of 210 exercise facilities around the country.
About half (56 percent) of the participaring facilities reported an average increase of 10 percent in memberships or user visits during the six months ended June 30, 1995, the survey found. Another
34 percent says membership was stable and 10 percent reported declines. All types of facilities surveyed recorded membership or usage increases for the full year 1994.
"The centers surveyed, on the whole, seem confident about furore growth," says Gregg Hartley, executive director of the Fitness Products Council (FPC), which sponsored the study. "The prevailing impression from the survey is that the involvement of Americans in exercise is continuing to grow."
The FPC is composed of approximately 140 companies that make and distribute fitness equipment for institutional and home use.
The study, conducted by the research firm of Morgan-Horan, Inc., involved telephone interviews with a national panel of managers ofYMCAs/YWCAs, health clubs, corporate fitness centers, cardiovascular/ rehabilitation centers, hotel centers and facilities at spas and resorts.
At the end of 1994, the average "Y" had 5,011 members, the average health club 1,050 and the average corporate center 450.
Among other highlights from the study:
- Equipment items that club patrons are becoming increasingly interested in are programmable treadmills (mentioned by 75 percent of panelists), computerized recumbent bicycles (62 percent), free weights (60 percent) and resistance machines (60 percent).
- Special programs for seniors were cited most often as attracting increasing interest from club users, mentioned by 73 percent of the panelists. Next in drawing increasing interest were personalized training programs (reported by 68 percent of panelists) and swimming programs (66 percent).
- In terms of programs and services currently offered, personalized training led the list, being provided by 78 percent of panelists. Next came baths: sauna, steam, whirlpool (74 percent); then step classes (66 percent). Special senior programs ranked seventh, offered by 45 percent of panelists, followed by swimming programs (43 percent).
- Looking ahead two years, health clubs, corporate centers, hotel centers and resorts believe women aged 25-40 will be the most important group to their business. YMCAs/YWCAs and cardiovascular centers, however, are targeting older consumers. They believe men and women aged 55 and older will be most important.