As the economy slowly recovers and consumers begin to open their wallets, some demographic groups will spend more than others. Savvy marketers will want to aim their ad campaigns to the higher-spending demographics. According to studies released by Performics and ROI Research, demographic groups most likely to spend in 2010 belong to Gen X and Gen Y (consumers between the ages of 18 and 44).
Researchers point out that these consumers have been splurging more than other age groups during 2009. Categories that have held specific appeal for splurging include:
- Dining out: 34%
- Travel/vacation 29%
- In-theater movies 19%
- Books/magazines 19%
- Apparel 18%
The outlook for the future is brighter among the younger demographics. Nearly 1 in 5 of these consumers plans to spend more in the next couple of months than last year. And nearly 1 in 4 will spend more online than last year.
When it comes to shopping online, consumers agree that specific factors influence their decision to click the purchase button. The most important factors are:
- Free shipping 85%
- Free return shipping 75%
- Promoted offers/discounts on homepage 66%
- Displays of consumer-generated product reviews 53%
Retailers will continue to fight for consumer business in 2010. Look for more of them to increase marketing, especially via online media, to younger consumers.[Sources: Splurges by Gen X, Gen Y Help Boost Economic Recovery, Performics, ROI Research, December 2009]