Wednesday, July 13, 2011

Economic Demand From Single Echo Boomers

Preview and Background: Who Will Win, Who Will Lose?

Since Generation Y will have lower marriage rates than former American generations (see Another Thing Generation Y Doesn't Like: Marriage for more information), economic demand for products and services may begin to change. I've covered this in other posts, yet for someone in the business world, what will be the products to sell to single Echo Boomers?

Male and female Echo Boomers spending behavior is quite different. In the five plus years I've worked in the financial industry, and reviewed spending on credit cards and debit cards, male and female behavior tends to operate in spending patterns, but seldom overlaps. These spending patterns offer marketers, advertisers and PR consultants a key insight to what products to sell and how to sell them.

By contrast, other studies - outside of my own - rely on consumers reporting what they consume with their money. Ironically, these studies are seldom accurate, as anyone in the financial industry can tell you - consumers seldom recognize that their actions contradict what they say! I've shown an example of this on my blog a few times: females report wanting to own homes more than males (approximately 33% of female Echo Boomers stated "buying a home" as a financial goal, whereas only 20% of male Echo Boomers state "buying a home" as a financial goal), yet male Echo Boomers are more likely to own homes (currently). The actual behavior is different than what consumers report.

This, by the way, is why you've seen marketers state, "People buy with their dollars, not their words." In other words, a financial consultant has more insight to what products sell than a researcher who uses online polls, focus groups or street surveys.

Thursday, the Echo Boom Bomb will cover what products that single female Echo Boomers want and Friday it will cover what products and services single male Echo Boomers want. There will be no Millennial Q and A for Friday.

Other Important Notes

Dallas/Irving again. Thursday and Friday I will be unable to answer email as I will be in the Dallas/Irving area (school-pertinent). I will try to respond to emails as quickly as possible when I return Saturday.

Most important post. After reviewing the statistics on this blog, the manage money post has received a lot of attention. The problem? That's the short version. Be sure to read the extended version on how Echo Boomers manage money if you have questions as to where the data originate. Any data not specified in other studies, like Pew, Brookings, et cetera has been conducted through my study. I will alert readers if it is from a different study outside this blog.