‘Boomerangers’ Increasingly Influence Household Purchase Decisions
Boomerang consumers are defined as young adults who, after living away from home, have returned to live with their parents. Luminosity Marketing, has released its Boomerang Consumer Study, which analyzes the lifestyles, values and purchasing habits of Boomerangers.
Highlights of the Boomerang Consumer Study include: Boomerangers don’t fit the “slacker” stereotype as depicted by previous generations. Many of them (35%) are making what they consider to be a smart decision to move back home in order to save money for specific life goals. Given that they are able to rely on their parents as a financial safety net, Boomerangers report generally happy moods and low stress levels throughout their daily lives. Household decisions and purchases are increasingly being made by Boomerangers, rather than their parents. For example, 80% of the segment participates in purchasing groceries for the household.
“Boomerang consumers are emerging as a segment that marketers need to pay close attention to given their role in household decision making,” said Luminosity President, Elizabeth Dolinski.
Echo Boomers Look Forward To Automobile Ownership
A recent AutoTrader.com study has found that Echo Boomers, the generation born between 1975 and 1991, estimated to be about 77 million strong, view car ownership as an important and exciting event in their life. 76% of Echo boomers in the study agreed that “Owning a vehicle is an important step to adulthood.”
While they enjoy the automotive experience, Echo Boomers are concerned about the environment. Some 64% of Echo Boomers believe vehicle emissions cause serious harm to the environment. Only 28% believe that car manufacturers genuinely care about vehicles’ impact on the environment. Given Echo Boomers’ environmental awareness, it is not surprising that 44% of the Echos surveyed will consider a hybrid vehicle for their next purchase. That is a better rate of consideration than for all-electric vehicles, which have only a 26% consideration rate.
Echos showed a fair level of interest in cars targeted specifically towards them, with the Nissan Cube and Ford Fiesta having the highest consideration rate at 16%, followed by the Kia Soul (15%) and Scion xB (14%).
Majority Of Homeowners Plan To Invest In Home Improvements In 2010
The majority of homeowners (53%) agree that investing in their home remains a priority, according to a new survey by American Express. In fact, 62% of homeowners plan to embark on home improvement projects in 2010.
Eighty-five percent of homeowners consider their homes to be their most valuable asset. On average, the amount spent on property enhancements will be: $6,200 among the general population, $6,100 among young professionals, and $11,500 among affluents. Nearly seven in ten homeowners (68%) will pay for improvements with cash, check or savings, followed by using a credit card with the intent of paying the balance off in full (28%), and using a tax refund (10%), indicating that consumers are largely financing home improvements projects with money they have versus various forms of loans, such as home equity lines (9%) or revolving balances on credit cards (7%).
Of the home improvement plans being tackled by homeowners: The majority (53%) involve indoor remodeling, with cosmetic work (36%), redoing a room (25%), and installing new flooring (14%) topping the list. Nearly one in three (29%) homeowners plan to remodel their outdoor spaces and more so among young professionals (55%) and affluents (35%).
Met Life Surveys 55+ Home Buyers
The National Association of Home Builders and the MetLife Mature Market Institute, recently conducted a study comparing the housing preferences of the 55- to 64-year-old age group vs. those of the 65+ age group.
The housing preferences were found to be similar with the exception of: 1) The younger group showed more interest in technology-heavy features, 2) The older group expressed a stronger preference for a single-story floor plan or one with a first-floor master bedroom.
One surprising finding, according to John Migliaccio, director of research at MetLife’s Mature Market Institute, “is that the younger group of mature consumers reported enthusiastically that they want services like home maintenance and repair as part of their next home purchase, along with services usually connected to older householders, such as housekeeping, onsite health care and transportation.” All of these were ranked higher than the desire for social activities which have been thought to be valued quite highly by this group.
