Thursday, April 23, 2009

Who's Still Spending?

No consumer is immune to the effects of this "economic event" that we are trudging through. I've mentioned in my blog earlier that consumers are actively cutting back on impulse buys, expensive food purchases, and vacations.

But not all consumers are impacted in the same way. I have come across some research indicating that while the behavior of the Baby Boomer generation and Generation X(ages 25-34) is actively changing in response to this economy, the behavior of other age segments is being impacted less by the trials and tribulations of the economy.

Higher income seniors and Generation Y (consumers ages 18-24) aren't making large changes to their buying behavior. Generation Y consumers have the least financial obligations of all of the groups and the higher income seniors generally have more of a savings cushion than any other group, which could lead these groups to feel more comfortable living their normal lifestyle.

Individually, these two consumer groups represent a small segment of total consumer spending power -- seniors at 14% and Generation Y at a mere 5%. However, if these age groups are your business's main revenue stream, then it is very important for you to know that although everybody is cutting back to some extent, the purchasing behaviors of these two groups are impacted the least by the down economy.

June Bisel
Partner, BBG&G Advertising and Public Relations

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