Advertising Age Summary 7 July 2008

“The Changing Face of the U.S. Consumer”

This article uses U.S. Census data to analyze some of the changes that have occurred across the United States and how these changes impact marketers today. Two of the most significant changes include: an aging population in the Northeast, and growing diversification among the younger generations. Toward the end of the article, immigration is mentioned, specifically as it relates to the market and the economy.

Many of the statistics show that people living in the Northeast are older and have fewer or zero children than the average household. This poses a challenge to marketers in this area as these household’s spending on products is typically lower. The older generations tend to save their money and are more cautious when buying products. Also, they are more likely to buy a service rather than a product. The median age for women is 39.8 years in the Northeast, compared with 35.9 years in the West. Older couples/households tend to look for ways to avoid risk. Knowing this, marketers should emphasize the quality and experience of their products through testimonials and warranties.

Another challenge faced by this change is that many older generations are not ready to accept or try anything new. They also tend to hold grudges over a brand. If a brand is trying to reinvent itself, it is often very difficult to convince the older population to accept a certain change.

The other major change discussed in the article is the growing diversification among the younger generations. Generations X and Y are smaller than their parent’s Baby Boomers, but immigration is helping add to their numbers. In general, the Baby Boomers had fewer children than their parents did which created a smaller amount of growth between the Boomers and the Connected Generation (X and Y). However, immigration is playing a key role in filling in the gaps. In turn, this creates a much more diverse younger generation. This group is open to new products, brands and ideas and is more accepting of progressive ideologies. The West and South have the greatest percentage of Hispanic households while the Northeast and Midwest have the greatest percentage of White, non-Hispanic households. Within age groups, 18 and under have the largest representation of Hispanics (21%) and the smallest representation of White, non-Hispanics (57%) compared to the other age groups. The oldest segment, 65 and older is only 7% Hispanic and 81% White, non-Hispanic.

The article ends with a discussion of some of the myths of immigration and who is pro and con on the issue. The author argues that immigration is necessary for growth in the U.S. due to the shrinking number of children in the younger generations. The older generations need people to service them and this new labor force will come partly from immigrants. Also, the author points out that the people who oppose immigration the most are generally those who live in places with few immigrants. Those that live in places with more immigrants are more likely to support immigration.