Under the sway of packaging
Judging books, among other things, by their covers is apparently more popular than dispensers of pearls of motherly wisdom would care to admit. Half of those surveyed for "Telenation Reports" - a national telephone survey newsletter published by Arlington Heights, Ill-based Market Facts - admitted that packaging influences their purchase decisions. Twelve percent claimed to be influenced "quite a bit"; 45 percent said they're "somewhat" swayed. Women are influenced more strongly than men: 14 percent said they were tipped "quite a bit" by packaging. Eighteen percent of 18- to 24-year-olds admitted to being strongly influenced. Older, retired Americans are less moved: Only 7 percent said they were significantly influenced by packaging.
Proliferation of new names continues
Americans' fascination with new things is well established, and the predilection is reflected in U.S. companies' rampant naming and renaming of products, services, even themselves. Three-quarters of the 400 U.S. businesses recently surveyed by Rivkin & Associates Inc., Midland Park, N.J., had introduced a new name for a product, a service or the company itself within the previous two years. Almost two-thirds of the concerns surveyed (61 percent) are conducting more naming projects, and most companies (72 percent) report that the naming process is more difficult now than it was five years ago.
To illustrate the boom in product names, Rivkin points to the 72,100 trademarked names in the cosmetics industry. In the first four months of 1994, another 1,000 names were added. The survey found that the most popular means of devi sing a new names are internal task forces (71 percent) and advertising agencies (53 percent). A fifth of the companies surveyed had used a naming consultant to come up with a new handle. Surveyed companies rated internal task forces (55 percent), advertising agencies (15 percent) and naming consultants (14 percent) as the most effective means of developing new names. Some 56 percent reported that they had used either qualitative or quantitative research to test new names. Only 37 percent of the companies polled in a 1991 survey reported using research in the name-generation process.
The grate outdoors
The season for outdoor cooking is over in much of the country, and according to research done by the New York-based Simmons Market Research Bureau, that means an awful lot of people have grills to clean and store. The company's Simmons Study of Media and Markets indicates 61.1 percent of all U.S. adults own outdoor grills, and they like to use them. Entertaining outdoors is popular with 42 percent of the adult population, 78 million people. Those most likely to have folks over for brats, burgers or a fancy style of grilled chicken are baby boomers 35 to 49, marrieds with kids ages 6 to 11, college graduates in professional and managerial occupations, those with a household income of $40,000 or more, and, reinforcing a classic stereo-type, suburbanites.
Virtual survey
Apparently people are intrigued by the idea of leaving without ever going anywhere. Current virtual reality technology allows the general public only to transform themselves into crude, blocky beings who shoot slowly arcing chunks of virtual explosive at each other, causing an unrealistic virtual dismemberment into the various colorful shapes that constitute the virtual gunfighter's body - all of which takes place in bars, generally, in front of hordes of onlookers chuckling vigorously at two adults wearing mutant sunglasses and engaging in a languorous battle only they perceive. But according to a recent Roper Starch survey, many of those having a laugh at the virtual gun-slingers' expense would like to virtually travel around the world - as long as they could do it at home (43 percent of survey respondents were very interested, another 25 percent somewhat interested). The Roper Starch survey turned up a variety of other virtual experiences that piqued interest. Respondents were intrigued by the notion of time traveling to a different period in history (35 percent were very interested, 25 percent somewhat so), attending a concert (31 percent, 23 percent), traveling to the moon or some other interstellar body (29 percent, 19 percent), the rather pedestrian opportunity to practice a hobby such as auto repair or macrame (26 percent, 28 percent) and designing and touring a house (25 percent, 24 percent). Practicing a sport, driving a race car, trying on clothes, creating a movie or painting or sculpture, scuba diving, skydiving and performing a life-saving operation also drew some nods. Surprisingly, perhaps, having a romantic or sexual encounter (11 percent, 16 percent) rankedjustabove battling creatures from outer space (10 percent, 12 percent). Folks' interest in having a romantic or sexual encounter with creatures from outer space was not measured.
Of course, the refinement of virtual-reality technology has potentially massive implications for the market research industry. Virtual focus groups - with participants from around the country or the world - and virtual surveys could revolutionize standard practices, quickly setting a new benchmark for the level of sophistication clients expect. But will they be satisfied with virtually eating virtual M&Ms?
Farmers surface from floods of '93
Though the extensive flooding in the Midwest last year hurt the country's food producers, especially corn and soybean growers, farmers surveyed by St. Louis-based Market Directions painted a generally rosy picture of the future of the industry. Their optimism could be chalked up to the increasingly businesslike approach many growers take toward what has traditionally been viewed as a lifestyle. In fact, the company describes almost half of the 404 wheat, cotton, corn and soybean growers they interviewed, by phone, as having a "strictly business" approach. Strictly business farmers, who are 42 years old on average, are inclined to try new technologies, invest in new equipment and be well-educated. They also are prone to optimism when it comes to finances. They use computers and are expanding their practice of soil- and water-conserving environmentally friendly techniques in the field. The other groups defined by Market Directions are the progressive and highly environmentally conscious emerging leaders; the older, financially pessimistic experienced leaders, who tend to think of farming as a lifestyle; and the crusty rear guard, who don't try or like new things, don't use computers, don't feel good about the future and don't practice alternative farming techniques.
The study turned up eye-opening numbers and trends in a variety of areas. A vast majority (72 percent) of those queried said they would be practicing more soil- and water-conserving "no-till" and "conservation-till" cultivation - a phenomenon that will produce a shift in farm equipment sales. Traditional cultivation precipitated sales of plows and large tractors, new tillage practices will mean stronger sales of trucks, smaller tractors, planters and cultivators. While pesticides are still the most popular means of controlling pests - 50 percent objected to the Clinton administration's call for reduced pesticide use - survey results indicate many farmers support the incorporation of pest-controlling chemicals in seed, reducing or eliminating the need for spraying. The push for reduced farm subsidies and tariffs met with a mixed reaction: Cotton and wheat farmers generally oppose the idea, while corn and soybean growers are for it.
The diversification of bread
Time was in many parts of the country when grocery stores' bakery departments were stocked floor to ceiling with white bread, with the occasional rye or wheat loaf thrown in for transplants from New York City. In fact, Simmons Market Research Bureau reports that 10 years ago, 75 percent of American homes stuck with Wonder Bread and its ilk. Now, folks are likely to choose any of a number of breads. Simmons reports that the 10 most popular types of bread are: white (eaten by 49.1 percent of survey respondents), whole wheat (43.8 percent), 100 percent whole grain (16.4 percent), French/Italian (16.4 percent), low calorie/light (12.2 percent), rye or pumpernickel (11.9 per¬cent),raisin (10.6 percent), sourdough (10.5), fiber/high fiber (9.3 percent) and oat/oat bran (8.7 percent). The survey also discovered that bagels have made major inroads into the American diet: 46.4 percent of respondents reported noshing on them regularly.
Destination: Florida
If they could get up and go tomorrow, the biggest chunk of Americans would take off for Florida. Apparently, criminal carjinks and murdered tourists don't bother folks as much as the media would have us believe. Decision Analyst Inc., Arlington, Texas, surveyed 10,000 U.S. households - 10.5 percent of which, if given the opportunity to relocate to any state in the union, would move to the sunshine state. Those who most wanted to move to Florida now live in the Midwest, the Northeast and, somewhat surprisingly, the Southeast. Arizona was picked by the second-largest batch, 8.5 percent. Folks 55 and older were almost twice as likely to want to move to the Grand Canyon state than people 18 to 34. The top 10 was completed by Hawaii (6.7 percent), Colorado (6.6 percent), North Carolina (5.6 percent), Oregon (3.1 percent), Texas (3 percent), Tennessee (2.9 percent), Washington (2.8 percent) and South Carolina (2.8 percent). On the flip side of the highway, almost no one wanted to move to Rhode Island (0.1 percent of those surveyed), and North Dakota, Nebraska and Delaware (all at 0.2 percent) were just slightly more attractive. The other unpopulars were Kansas (0.3 percent), South Dakota (0.3 percent), Iowa (0.4 percent), Mississippi (0.4 percent), Illinois (0.4 percent) and Indiana (0.4 percent). Apparently, nobody asked about Washington, D.C.
Lazy label readers
Americans, especially those over 65, are mixing up potentially dangerous prescription cocktails, a new Prevention magazine/Council on Family Health survey shows. In the poll of 1,250 adults, conducted by Princeton Survey Research Associates, 88 percent of all respondents said that they read the labels on over-the-counter medicines the first time they take them. At the same time, 40 percent of those surveyed admitted that they do not always read labels when using more than one medication. The phenomenon is especially common among those 65 and older, 49 percent of whom take more than one medication. The danger, of course, in mixing medications comes from interactions between the medications. Despite the prevalence of medication mixing, only 12 percent of survey respondents reported having experienced a negative reaction. Prevention is published by Rodale Press, Emmaus, Pa. The Council on Family Health is a nonprofit organization that was created in 1966 to educate consumers about home safety, personal health and the safe and proper use of medicines. For more information about drug interactions and the brochure "How to Prevent Drug Interactions," send a self-addressed, stamped envelope to the CFH at Box 3 07, Coventry, CT 06238.
Risk-managing execs tab top issues
Statistics continue to confirm what vir-tually every American already understands: Health care is the most important issue of the day. Business is especially anxious about the costs of health care. In a recent survey - part of New York-based Alexander & Alexander Services Inc.'s seventh annual national survey - risk managers in the retail and wholesale trade industries ranked 68 current U.S. legislative and regulatory issues in order of importance. The 10 issues named most frequently were: climbing health care costs (91 percent of those surveyed consider the issue of high or above average importance); cost shifting by the medical community designed to transfer the burden of increasing service costs to the workers comp system because group medical and public programs are underfunded (89 percent); caps on non-economic and/or punitive damages (88 percent); workplace safety (86 percent); the need for an integrated corporate approach to workers' comp/health care reforms (80 percent); use of alternative dispute resolution mechanisms (80 percent); managed care programs (77 percent); self-insurance trends, including state regulation and identifying tax efficiencies (74 percent); limiting employers' ability to review workers' comp claim histories of job applicants (74 percent); and use of alternative risk-financing mechanisms (74 percent). The U.S. Risk Management Survey was conducted by Alexander & Alexander's Government & Industry Affairs office and Radford Associates, a unit of the Alexander Consulting Group.
Portrait of Europe changes
Europe is getting older, more comfortable and more united, according to a recent issue of Market: Europe, produced by W-Two Publications, Ithaca, N.Y. Market: Europe writer Doris Walsh believes the long, stifling recession in Europe is beginning to lift, and that consumer confidence is rising with it. The prospect of adding Austria, Finland, Norway and Sweden (a total of 26.2 million people) to the European Union in January 1995 (bringing EU population to 372 million) is cause for further optimism, but a number of important trends identified by Market: Europe also will affect the market.
The median age in Europe will be roughly 36 in 1995 and will climb to 42 by 2010. As the median age climbs, the number of empty nesters will increase - and they will be looking for fun things to do with the money they are no longer using to provide for their kids. And while the percentage of youngsters will decrease, technology-crazed kids will continue to influence parents' purchases of everything from food to computers, VCRs and TVs. Fortunately for moms and dads, the increasing number of elderly folks will mean they don't have to buy every new gadget that conies out - grandpa and grandma will no doubt pick up some of them.
The European tradition of long stays in health care facilities is likely to come to an end as new technologies are introduced, shortening recovery time. On an unrelated front, Europeans will continue to marry later than Americans. In 1970, the average age at first marriage for European men was 26.9 years; for women, 24.1 years. By 1989, men's average marriage age hit 27.4 years while women's rose to 25.1 years. In 1988, average first marriage age for American men was 25.5 years, for women, 23.7 years. The divorce rate in Europe, as in the U.S., has stabilized. It is now 1.6 per 1,000 people (4.7 in the U.S.).
European women are likely to continue to enter the workforce but the rate of the trend may slow. Meanwhile, Europe will get mobile: The increase in the number of multinational corporations and the dropping of border restrictions will promote cross-continental travel. European are likely to become more focused on individual responsibilities and goals; Market: Europe expects a rise in entrepreneurship and self-employment, while reliance on the state diminishes. More Europeans are likely to demand access to higher education. Consumers will want more convenience in all aspects of their lives. National differences/loyalties will continue to affect purchases in Europe, but at the same time expect the European shopper to become more sophisticated and demanding. Continentals no doubt would be loath to admit it, but it certainly appears that at least as far as their consumptive habits go, Europeans are emulating Americans more and more all the time.
Women handy with tools and money
Stereotypes continue to bite the dust in the '90s. Rather than shouting for the nearest man when things break down around the house, the modern woman grabs the nearest wrench - of which she is likely to be the owner. A recent issue of "EDK Forecast" indicates that virtually all women (97 percent of those surveyed) know where the circuit breaker in their residence is, 90 percent know how to shut off the water if something goes terribly wrong in the bathroom, and 93 percent of all single women 35 to 44 (compared to 94 percent of married women in the same age group) have a monkey wrench in the house - so it would seem they're perfectly willing and able to effect repairs, too. Of all the women surveyed by EDK Associates, New York, 92 percent had a plunger in their homes, 35 percent had a monkey wrench, 83 percent had a ladder, 74 percent had a fire extinguisher and 69 percent had a pipe declogger of some kind on hand. The percentages in all for single women went up dramatically as they got older, to the point where there was little difference between singles and married over age 35. Only 24 percent of the single women surveyed were not ready to handle household emergencies by herself. The macho male ego takes another serious blow.
Women are just as comfortable with the ins and outs of investing as they are with plumbing. According to "EDK Forecast," 31 percent of American women and 36 percent of men are investors - darn near even. And women believe they pay more attention to financial news than men do: 47 of the women surveyed said women pay more attention than men do, while only 36 percent of men said they are more in tune with the market. Of the women surveyed who invest, 29 percent are confident about their strategies, while 33 percent of men are. Men are a bit more likely to believe they know a fair amount or a great deal about investing (49 percent) than women are (42 percent). Both male (62 percent) and female (63 percent) investors rely most heavily on newspapers for the financial information they need. Investors more frequently turn to a friend or relative (52 percent of men, 48 percent of women) for advice than they go to a tax lawyer or accountant (39 percent of male investors, 35 percent of females), probably because neither sex has much confidence in these professionals: Only 39 percent (46 percent of men and 31 percent of women) said they trust their accountant/lawyer. Men, however, go to the professionals for advice more often than they call on their spouses (30 percent), while women are far more likely to go to their husband on financial matters (46 percent).