We may think of Millennials as impulse buyers looking for instant gratification and the latest “in” thing, but they are turning into careful shoppers who compare prices and hunt for bargains, according to an AdAge analysis of SymphonyIRI surveys. In truth, Millennials have always gravitated to offerings that were free or cheap (think: Napster and iTunes) and that turns out to be the main driver behind their buying habits. Nearly 9 in 10 Millennials ticked “has lowest prices” as a key retailer attribute when choosing where to shop. About the same number, 87%, listed an item’s price as a key… Read More
Categories: BlogAs we’ve noted, Millennials have deferred or avoided major purchases such as cars and homes and turned away from the traditional retail, recording, video, and television businesses. They hunt for discounts, deals, freebies, and near-free (99¢) pricing. Now several commentators have suggested that technology has altered the generation’s approach to buying in an evolutionary way. For example, Millennials may avoid purchasing because they don’t have money, still live at home, and are concerned about the environment. Or, as a ZDNet columnist suggests, it could be that smartphones provide much of what cars used to: socialization, movies, shopping, even dating. Why… Read More
Categories: BlogWe’ve noted here that Millennials have a different attitude towards cars than previous generations and they have a different approach to retail and buying, as well. An analysis by MSN Autos explains how Millennials are changing the way we buy and sell cars. Dealers and sales associates should take note because Millennials will account for 75% of car purchases by 2205. They currently account for almost 40%. Some of the characteristics of Millennials in the market for a car: They don’t like to haggle. They know what they want and what it’s supposed to cost. They do detailed research on… Read More
Categories: Automotive, Blog, GenerationsIn one of the first signs of the coming economic sunset of the Baby Boomers, Generation X has surpassed the Baby Boomers in few key indicators of credit card activity. According to Cardbeat, Xers now exceed Boomers in card use, balance transfers, and premium card ownership, among other key indices. While this transition was expected eventually, credit card industry observers are surprised it has come so soon. In fact, observers say, card issuers have not completely understood how to market to and serve the Gen X cohort. It’s an issue that is “in-progress” for most of them. Industry experts are… Read More
Categories: Baby Boomers, BlogMillennials are gradually awakening to the need to plan for retirement and the financial industry is gradually awakening to the importance of reaching out to Millennials. The generation and the industry may have found a meeting place in age-based and Roth funds, according to an analysis by Fidelity. According to the study, about two thirds of Millennials are choosing funds organized around age-based asset allocation. Among all participants, only about 45% choose that option. About half chose target-date funds compared with 30% among investors at large. Millennials also choose Roth savings options 50% more than other Generations. About 9% of… Read More
Categories: Blog, Financial Services, WorkThe generation currently most likely to shop for groceries and cook at home, the Baby Boomers, will be spending less and cooking less. Meanwhile, the Boomers’ demographic replacements, the Millennials, don’t cook at home nearly as much. When they do, they are primarily interested in value (i.e., price) and convenience. That adds up to a tectonic generational shift for the grocery industry, according to a joint study by Jefferies and AlixPartners. Boomers, currently the leading grocery shoppers, are headed for retirement and fixed incomes and decreased demographic significance. They’ll be spending less when they do grocery shop, they’ll be cooking… Read More
Categories: Baby Boomers, BlogNearly half of Millennials are “under-banked,” according to a study by Think Finance, and are choosing to use financial convenience products rather than traditional banking services. Under-banked Millennials are spread evenly across income brackets all the way up to those making relatively high salaries (for their age), up to $75K a year. Under-banked Millennials are opting for instant gratification and ease of use through check cashers, payday loans, and prepaid debit cards. As a result, they are utilizing services that are more expensive but faster and easier than traditional banking. Subjects in the study say they find traditional banking too… Read More
Categories: Blog, Downloadable Media, UncategorizedDespite the fact that Millennials have the highest rate of unemployment of any generation and are deeply in debt, they still use a big chunk of whatever money they have on discretionary and even luxury spending. According to one marketing agency, the average Millennial spends $784 a month on discretionary expenses like entertainment and eating out. According to American Express, they are the largest demographic for new purchases of technological gadgets and fashion apparel (up by 33%). They’re even increasing their purchases of jewelry (up by 27%). In part, Millennials’ parents are subsidizing their lifestyles. Over half of them cover… Read More
Categories: Blog, Recession EconomyA new Allianz survey shows that Baby Boomers think it’s more important for a family to pass on its non-material legacy than to pass on its wealth. 86% of Boomers said it was important for elders to pass on their family’s history and stories to their descendants. 64% place importance on the inheritance of family possessions. But only 9% consider a financial inheritance to be vital. The Matures, the Boomers parents, generally agree with their offspring though they place a relatively higher priority on leaving behind some wealth for their kids. In comparison with the same survey conducted in 2005,… Read More
Categories: Baby Boomers, Blog, MaturesBusiness travel among Millennials was up 40% in 2011 and the business travel industry is learning to accommodate them. For example, Millennials like paperless travel, using apps and websites to handle all of their arrangements and transactions. “All of my tickets can go on my phone,” says one Millennial. “I scan it at the T.S.A. and scan it at the gate. There’s no reason to print out airline tickets again.” They prefer travel communication in the form of texts, emails, or social media messages. And they expect customer assistance from all of their travel vendors to be available 24/7. “They… Read More
Categories: Blog, Travel