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November/December 2006 Key Findings Newsletter - Marketing/Planning

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Boomers Today

Most (76%) of Baby Boomers say they are comfortable with their age; they are currently ages 41-60. Some 39% even call these the best years of their lives, with another 34% saying that their best years are still to come.

Boomers in their 50s are the most optimistic about the future. Boomers typically like to learn new things (76%), travel (75%), and try new things (70%). Work is a major priority for 56%, followed by family (52%), hobbies (39%), and friends (26%).

In the last five years, 30% of Boomers have lost their jobs, with another 36% having changed jobs. Some 21% have changed careers in this time period.

Women's Priorities

The following chart shows American women's priorities, with their families' health (94%) ranking at the top.

Trends Shaping Our Environment and World

According to a report by the Worldwatch Institute, economic indicators are on the rise as environmental problems worsen. During 2005, more steel and aluminum were produced than ever before, vehicle production reached a record 45.6 million units, and gross world product reached a record $59.6 trillion. The number of Internet users worldwide topped 1 billion in 2005, and cell phone sales reached an estimated 816 million units.

However, while these trends point to unprecedented levels of commerce and consumption, they are set against a backdrop of ecological problems. The chart below lists major trends to watch.

Media That Americans Trust Most

In most countries, citizens trust the media more than they trust the government (63% versus 52%). However, Americans say they trust the government more (67% versus 59%) per a recent BBC/Reuters/Media Center poll. The countries included in this survey were Brazil, Egypt, Germany, India, Indonesia, Nigeria, Russia, South Korea, the UK and the US.

American's most important news sources in a typical week are TV (50%), newspapers (21%), the Internet (14%), and radio (10%). When asked which sources they trust the most, local newspapers received the highest rating (81% a lot or some trust), friends and family (76%), national TV (75%), national/regional newspapers (74%) and public broadcast radio (73%). Both CNN and Fox News were mentioned by 11% without prompting; no other sources were mentioned by more than 4% of respondents.

Luxury Consumers Changing Preferences

More than one-half (57%) of luxury consumers (people with annual household incomes of $75,000+) say that experiential luxuries give them more satisfaction than home or personal luxuries, up from 41% in 2003. Experiential luxuries are travel, dining, entertainment, spa and beauty services, and home services.

One-quarter (26%) of luxury consumers get the greatest satisfaction from home luxuries such as furniture and linens, down from 33%. Another 17% are most satisfied with personal luxuries including cars, clothing and jewelry, down from 28%.

These changes in preferences hold true for both male and female consumers of different ages and income levels.

American Babies Watching TV

Each day, more than eight in ten children less than six weeks old (83%) watch television (including videos and DVDs) an average of one hour and 57 minutes, per the Henry J. Kaiser Family Foundation.

As the children's ages increase, so does TV use. For example, 61% of babies younger than one year watch one hour and 20 minutes, with 90% of 4-6-year-olds watching two hours and three minutes.

One-third (33%) of children under six have TVs in their bedrooms, including 19% of those age one or younger, 29% of 2-3 year olds and 43% of those age 4-6. Some 32% children this age also live in homes where the TV is on all (13%) or most (19%) of the time.

Clinical Trials by For-Profits versus Not-For-Profits

Among the 324 clinical trials published in the Journal of the American Medical Association, The Lancet, and the New England Journal of Medicine between 2000 and 2005, 59% of these trials reported evidence significantly favoring new treatments, while 35% reported no significant difference, and 7% favored standard care. Further analysis shows that the trials funded by for-profits groups were more likely to favor the new treatment.

Among trials evaluating drugs, 40% of not-for-profit, 54% of jointly sponsored and 69% of for-profit trials had results favoring the new drugs. In trials evaluating cardiovascular devices, 50% of not-for-profit, 69% of jointly sponsored and 82% of for-profit trials favored the new treatments.

Online Dieting Research Changes

While visits to diet and fitness websites rose 8% during 2005, the type of information dieters sought also changed. Searches for "Atkins Diet" and "South Beach Diet" were down 12% and 36% respectively. However, searches for "body mass index" and "weight training" were up 67% and 61%.

The Weight Watchers website received the highest share of visits at 51%. The South Beach Diet site ranked seventh with a 3% share; Atkins was not in the top 10.

Social Isolation Rising

The number of people with whom Americans feel comfortable discussing important matters dropped by almost one-third between 1985 and 2004. In 1985, the average American had 2.94 people in which to confide, but this had dropped to 2.08 people by 2004. The following chart shows the changing size of discussion networks.

Other findings about social network changes between 1985 and 2004 include:

  • The proportion of people who speak only to family members about important topics grew to 80% from 57%.
  • The proportion who only speak about these topics to their spouse rose to 9% from 5%.
  • The proportion of those with at least one person of another race as a confidant rose to 15% from 9%.
  • On average, African Americans have smaller social networks than Whites. African American men experienced the largest decline in confidents, to 1.8 from 3.6.

Blogs Affect Business-to-Business Purchase Decisions

The impact of blogs (weblogs) in business-to-business is growing according to a new survey from research company KnowledgeStorm and ad agency Universal McCann. The e-mail survey of more than 4,500 people (mostly information technology professionals) found that more than 80% read blogs, including 18% who read them daily and 33% weekly.

Some 53% of the respondents said blogs influence their purchase decisions. For those who read blogs daily, nearly 69% said blogs affected this behavior.

Additional survey findings:

  • One-half (49.8%) of the respondents said they comment on or contribute to blogs at least once a month;
  • 70% reported that they "recommend or pass along content from blogs to co-workers and colleagues" at least once a month;
  • 59% said they were "somewhat" or "very" familiar with RSS technology, which lets users subscribe to blogs and other online content. Only 31% said they subscribe to RSS feeds or use a RSS reader to access content.

E-Mail Strategy for Businesses and Consumers

Business executives prefer to get e-mail marketing messages on Mondays and Tuesdays, according to a recent report from eROI Inc. In contrast, consumers prefer to receive e-mail at the end of the week. Wednesdays and Fridays are the best days to send consumers e-mail messages, to help them plan their weekend shopping. The best time of day to send e-mail is during the lunch hour, with a 6.2% click rate on average.

For e-mail newsletters, 25% of B2B recipients want weekly updates, while 36% of consumers said they prefer monthly newsletters. The study also found that 65% of respondents said irrelevant e-mail causes them to unsubscribe. Some 13% of respondents said they do not like to receive "overly relevant" e-mail because they feel they are being watched.

A review of the e-mail clients showed that Microsoft Outlook was the e-mail client of choice for 60% of B2B users, while Apple Mail, Lotus Notes, Entourage and Thunderbird are used by about 20%. The rest of the respondents use a variety of other e-mail clients. For consumers, Gmail is the most popular e-mail system (used by 17% of consumers), followed by Yahoo!, Outlook 2003 and Hotmail.

Number of Asian-owned Businesses Rising

The number of Asian-owned businesses rose 24% between 1997 and 2002, about twice the national average for all businesses. In 2002, these 1.1 million businesses generated more than $326 billion in revenues, up 8% from 1997.

Almost one-third of all Asian-owned firms had paid employees. These 319,300 businesses employed more than 2.2 million people and generated revenues of nearly $291 billion.

Nearly one-half (47%) of all Asian-owned firms were Chinese-owned (290,197) and Asian Indian-owned (231,179). Korean-owned firms were the third largest at 158,031, followed by Vietnamese-owned (147,081), Filipino-owned (128,223) and Japanese-owned firms (86,863).

Customer Respect Index

Intel Corporation came in first on the 2006 Customer Respect Index, an annual study by the Customer Respect Group that reviews how large corporations treat their customers online. Businesses included in the study are the 100 largest U.S. companies, as defined by Fortune magazine, and are ranked based on usability, communications and level of trust.

Following Intel, the other overall best performers are Sears, Roebuck & Co.; Hewlett-Packard Co.; Medco; and Procter & Gamble Co. The most improved site was Proctor & Gamble, which moved up to number five from number 64 last year.

When reviewing site usability, Intel, Johnson & Johnson and Wells Fargo ranked highest. For communications, the top-rated sites were Bank of America, HP and Sprint Corp. For level of trust, the top sites were Proctor & Gamble, Intel and IBM Corporation.

Bullets

  • Men are likely to indulge themselves by watching TV (17%), eating a good meal (15%), or working out (14%). Women prefer to sleep late (14%), shop (13%) or get manicures (12%).
  • While 94% of Americans age 18-24 are able to find the US on a map of the world, only 50% can locate the state of New York on a US map, and 43% can find Ohio.
  • The number of public school teachers leaving the profession is increasing with almost 50% of newcomers departing within five years. An estimated 3.9 million new teachers will be needed by 2014 due to attrition, retirement and increased enrollment.
  • The publication of new book titles and editions in the US dropped 9.5% to 172,000 in 2005, down from 190,000 in 2004. This marks the first decline since 1999, and follows a record increase of 19,000 in the number of new books published in 2004. Almost every category except legal decreased.
  • Almost one-half (45%) of Americans say that illegal immigration enables them to get in touch with other languages and cultures and to be more culturally open.
  • More than one in four (27%) Americans played miniature golf between June 2005 and June 2006. Some 38% travel more than 20 miles to a miniature golf site, and 34% travel 5-15 miles.
  • Two-thirds (62%) of consumers believe their children and grandchildren won't have a better economic future than they have themselves.
  • Americans are evenly divided on whether the death penalty (48%) or life in prison with no possibility of parole (47%) is the better punishment for those convicted of murder.
  • Six in ten workers age 21-30 (60.6%) have jobs with companies that sponsor retirement plans. However, only 36.6% participate in those plans.
  • Some 70% of Americans believe that legalized gambling encourages people to bet more than they can afford to lose, up from 62% in 1989. However, lotteries are making sales records - 41 states sold $52 billion in tickets during 2005. This is in sharp contrast to 1989 when 32 states sold $19 billion in tickets.
  • Almost two-thirds (65%) of adults think that the use of cell phones while driving should be banned by law, while 29% of people are against a ban. Some 43% say cell phones should be banned from public places like restaurants, movies and museums, with 52% opposed.
  • The proportion of American households consisting of one person living alone rose to 26% in 2005, up from 17% in 1970. By 2005, only 10% of households contained five or more people, down from 21% in 1970.
    The US jail and prison population has increased by 600,000 people since 1995, with one in every 136 people now incarcerated.
  • American's most used news sources are TV (50%), newspapers (21%), the Internet (14%) and radio (10%). About 87% prefer to reference several news sources rather than rely on just one.
  • The number of online-only catalogs jumped 71% to 1,320 in 2006, up from 772 in 2005. Total online catalogs grew 19.7% to 8,903, up from 7,440 during that same time.
  • The number of subscribers to the five largest full-pay premium cable TV services (HBO, Showtime, Cinemax, The Movie Channel and Starz) rose 76% to 81.5 million in 2005 from 46.4 million in 1995.
  • Some 84% of US households now subscribe to satellite or cable TV.
  • On average, it takes American consumers six years for an actual change in the quality of a product to be reflected fully in shoppers' perception of quality, according to the Marketing Science Institute.
  • Some 68% of Americans, compared to 74% of consumers worldwide (in 42 countries surveyed), can be classified as recreational shoppers - people who go to stores as entertainment rather than to buy necessities.
  • According to Iconix, Internet users are twice as likely to open e-mails marked by visual icons as they are to open unmarked e-mails.
  • Four in ten consumers (41%) talk to their physicians about prescription drugs they've seen advertised. Some 75% of these are only mentioning not asking that they be prescribed.
  • Five in six Americans (84%) say that hospitals, doctors and pharmacies should be required to publish their prices for the goods and services they offer.
  • Some three-quarters (76%) of adults have difficulty sleeping at least sometimes.
  • The proportion of physicians without any managed care contracts rose to 11.5% in 2004-2005 from 9.2% in 2000-2001, after being stable throughout the 1990s.
  • The average weight of American adults increased 2.5 pounds to 188.3 pounds from 2005 to 2006. While 36% of Americans are now clinically obese, only 10% (6% of men and 14% of women) see themselves as obese.
  • More than one-half (55%) of Americans have been tested for HIV, 21% between June 2005 and June 2006.
  • Almost two-thirds (63%) of gay men who are HIV positive have no regrets about revealing their health status to others, and 75% have feelings of regret only about revealing it to 7% of those who know. Those they typically regret telling are parents or other family members.
  • Nine out of 10 Greeks (members and pledges of college fraternities and sororities) drank alcohol in the past 30 days, compared to 65% of other students. Some 60% report getting drunk weekly, compared to 32% of non-Greeks.
  • Nearly two-thirds of nurses have been stuck accidentally by needles while working - 47% by contaminated needles.
  • More than four in ten children age 9-13 feel stressed most or all of the time because they have too much to do; 77% would like more free time.
  • Statewide smoking bans for workplaces, restaurants or bars have passed in 16 states, and seven of these have banned smoking in all three. Currently, only nine states don't have any community smoking bans in effect.
  • Several factors influence retail salespeople's productivity including having confidence in the product being sold (33%), personal competitive spirit (25%), coaching from a sales manager (23%), and a commission or other financial incentive (19%).
  • Companies sent 17% more e-mail messages in the first quarter of 2006 than they did a year earlier; they also received 20% more e-mail messages.
  • Online sales are forecast to jump 20% from 2005 to 2006, reaching $211.4 billion. From 2004 to 2005, online sales rose 25% to reach $176.4 billion.
  • More than two in three US households (69%) pay at least one monthly bill online, up from 56% in 2005.
  • Online advertising, as a proportion of advertisers' total media budgets, is expected to increase from 15% to 20% between 2004 and 2006, and to reach 32% by 2010.
  • Google accounted for 59.3% of US online searches in March-May 2006, followed by Yahoo! (22.0%) and MSN (12.1%).
  • About 38% of companies allow employees to bring their children to work in emergencies, with 20% being very supportive of workers bringing their children to the office. However, 42% of companies do not allow children at work in any circumstances.
  • A recent survey by eROI shows that two-thirds of people read their e-mail every day of the week; 90% read e-mail six days a week; and 75% respond to e-mails six days a week. Some 50% said they can't go to bed without checking their e-mail in-box one more time, and 55% of the survey's respondents said e-mail owns more time in their life than it should.
 

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