Baby Boomers and Consumer Behavior

By Tracy Bogardus

Introduction

Marketers use many techniques in targeting consumers, including demographics, psychographics, and product usage behaviors. They use these things to define market segments. There are many ways to define a market segment. One of the broadest groups is called a cohort, or group with a common demographic (Wellner, 2000). One type of cohort would be an age cohort. A generation is essentially an age cohort. According to Miriam-Webster’s online dictionary, a generation is a group of individuals born and living at the same time. To marketers, a generation is a group of people who share not only age but also early and influential experiences (Wellner, 2000). Although these groups are diverse despite what they have in common, recognizing these groups makes it easier for marketers to address consumers. One significant generation are baby boomers. Baby boomers are the group of people born between 1946 and 1964 (Marney, 1995). The baby boomer generation accounts for between 78-80 million people in the United States (Smart, 2001). This means that nearly 30% of the entire population of the United States is baby boomers (Smart 2001). This age cohort is especially important to marketers because it is the largest US demographic group ever.

Explanation of the Topic

Background. The baby boom began 1946, just after World War II ended. In the years during the war, the birth rate in the United States had dropped somewhat because most of the reproductive-ready males were away at war. After the return of the soldiers, the birth rate increased and continued to do so until it reached its pinnacle in 1957, and finally slowed down in 1964 (Anonymous 2001).

As mentioned earlier, for marketing purposes a generation is not simply people the same age living at the same time. The shared experiences that shaped the people of the generation and influenced their values were and are an integral component. Because the baby boom was a lengthy 18 years, many experiences shaped boomer’s attitudes. Some of the early influences were

	the Vietnam War,
	the civil rights movement,
	the women’s movement,
	integration,
	birth control,
	rock-n-roll,
	drugs, and
	Woodstock (Morton 2001).

Later influences include new technology such as personal computers and answering machines, Watergate, the impeachment of Nixon, AIDS, “Reagonomics,” and even more drugs (Smith and Clurman 1997). While some of these experiences and occurrences had a strong impact on boomers, others were not even born yet, so this is a generation with heterogeneity.

This plethora of experiences and occurrences shaped the boomers attitudes and values. Between the Vietnam protests, Civil Rights movement, and the women’s movement, a distinct anti-establishment message arose. The distrust of “the man” translated not only into distrust of government, but also of people over 30: Hence the rallying cry “don’t trust anyone over thirty” (Lipke 2000). The distrust of adults lead to an exceptional valuing of youth, and boomer favorites such as The Who’s “My Generation” belting out: “Hope I die before I get old” (Smart 2001).

The boomer’s also enjoyed a rock-n-roll rebellion against their parents and adults in general. Music was another way for them to proclaim their individuality from their parents and express themselves. It was also a means to express their social concerns and an artistic outlet for their social activism (such as Vietnam protests). The availability of birth control and the peace movement produced the motto "make love, not war." People, especially women, could control their bodies, and a sexual revolution was born. For later boomers, however, the sexual revolution became associated with the spread of sexually transmitted diseases and AIDS.

Implications. At a crucial time in their lives, these experiences influenced baby boomer values and attitudes permanently and shaped many aspects of their personality. Boomers value individuality, youth, optimism, determinism, and social activism (Morton 2001). Understanding these values is crucial to effective marketing and comprehension of boomer’s consumer attitudes and behaviors. If companies want to succeed, it's extremely important for marketers to understand boomers attitudes and desires - they account for 50% of consumer demand, at least 70% of the household net worth, and they buy everything from diapers to diet pills to denture cleaner, because they are in many various life stages. Some married young, some delayed family and marriage, and some never have had kids (Morgan 1998). They also have higher discretionary income than all other age groups because they have been productive for so long and most have had dual income households. To compound the confusion, but also the needs, many are under the charge of not only purchasing for their children (because they put off marriage and family), but their parents too as they grow older. To ignore this aging population would be a mistake. It is one of the only growing groups in the United States (Morgan, 1998). Instead, it is important for marketers to understand baby boomers values and needs.

Although in excess of 10,000 baby boomers are turning 50 each day now, they still value youth (Lipke 2000). What’s more, they still feel young, some up to 15 years younger than their chronological age (McDonald 2001). They don’t feel old, they don’t want to be called old, and they don’t want to marketed to as old (McDonald 2001). They don’t fit the typically “old” stereotype of a consumer set in their ways either. They are open-minded experimenters and are willing to try new brands (Bernstein 2001). While some consider themselves brand loyal or somewhat brand loyal (Malley 1998), they are more interested in the utility of a product than the brand name (Bainbridge 1998).

To get away from the connotations and stereotypes of older consumers, some marketers have begun calling boomers “zoomers” (Smart 2001). This not only reinforces their youthful attitudes, but the fact that they are still active and motivated, and it’s important to them that they can identify with the brands they choose (Dychtwald 1997). This activity and accompanying optimism is echoed in many sentiments by boomers that their lives are just beginning as they head toward retirement (Smart 2001).

In fact, retirement won’t be typical retirement for some boomers. Many boomers say that they want to work at least part time out of interest or enjoyment (Patel 2002). A brand that portrays active adults would thus be more attractive to boomers.

Boomers also want brands they can trust (Bond 1997). Boomers are better educated than any preceding generation. In fact, nearly 90% of boomers graduated from high school, and in excess of 25% also have a bachelors degree (Smart 2001). These are savvy consumers and are not easily deceived. Yet, they are receptive to advertising and even consider it communication because it delivers information (Dychtwald 1997).

Self-indulgence and self-absorption also characterizes boomers. Many have recently reached the empty nest stage of life and are ready to spend money on their own enjoyment and luxuries (Chura 2002). They are also ready for celebrations and entertainment, and drink more than previous generations did at their age (Chura 2002). They are impulsive purchasers, and the once dubbed “me-generation” is ready to indulge themselves more, especially if they are empty nesters.

Examples

Pepsi – Pepsi obviously realizes the American value of youth and the baby boomers desire to see themselves as young. Instead of keeping their tagline “taste of a new generation,” which risks alienating other, and older, generations, they changed it to “for those who think young.” This is a perfect appeal to baby boomers because it is precisely who they are. Although the commercial shows Britney Spears, who is young and not an ideal spokes person for baby boomers, Pepsi managed to still include baby boomers by showing her progressing through decades starting with the 1950s all the way to the present, that way baby boomers can reminisce. Once again, the tagline also helps with the overall image and message that thinking young is being young, exactly what the baby boomers would like to believe.

Oldsmobile – Oldsmobile used to have a commercial aimed at baby boomers with the tagline “not your father’s Oldsmobile.” At the time baby boomers were younger, and marketers were really focusing on their demographic. Although Oldsmobile doesn’t use this slogan anymore, it is an excellent example of target baby boomers. Car companies are one of the few consumer products that do a good job of targeting baby boomers. Now, Oldsmobile uses a more future oriented approach to marketing which is probably more appropriate for baby boomers now. They feel they have achieved individuality and are different from their parents, and they are more forward looking now; Oldsmobile’s new campaigns reflect that.

L’Oreal – L’Oreal has not just focused on youth, although their product helps women to look younger. Instead they have focused on the self-indulgent side of baby boomers with their slogan “Because I’m worth it.”

Prudential – Prudential investment services appeals to boomer’s desire for information, and also their need for financial planning as they approach retirement. Prudential’s taglines also appeal to boomer’s desire for trust. “Like a rock” and “get a piece of the rock” both imply a stable and trustworthy sound and sense of permanence.

Mercedes Benz – Mercedes Benz new 5^th generation SL commercial is also targeted effectively at baby boomers. First, it is a luxury car, perfect for a self-indulgent generation. Also, the commercial shows the evolution of all the previous SL models. Finally, the music to the commercial is the Righteous Brothers “Unchained Melody,” as song that would probably appeal to the baby boom audience. During the evolution of the car in the commercial the song also evolves from its original sound to a more doo-wop sound to a more contemporary sound. By the end of the commercial, “Unchained Melody” is back to its original sound but with a strong bass line behind it. The voice over says something about it being timeless, and it implies a timelessness (even better than youth) to the owner of the car as well.

Relevant Web Sites

Pepsi www.pepsi.com

Oldsmobile www.oldsmobile.com

L'oreal www.l’oreal.com

Prudential www.prudential.com

Mercedes-Benz www.mercedes-benz.com

US Census Bureau www.census.gov – information about ages, population, etc.

www.agingpotential.com – baby boomer info.

www.robbywerner.com – baby boomer info.

www.centerforagingresearch.com – advice for baby boomers

http://fred.net/hsmead/boom.htm – baby boomers history

Quiz

1. In terms of consumer behavior, baby boomers are a(n) ______________generation.

a. old

b. homogeneous

c. heterogeneous

d. unimportant

2. Baby Boomers account for ______ percent of consumer demand.

a. 15

b. 50

c. 85

d. 30

3. Baby Boomers account for about _________percent of the U.S. population.

a. 15

b. 50

c. 30

e. 20

4. The educational level of baby boomers is _________ than previous generations.

a. higher

b. lower

c. the same

5. Baby Boomers are in what stage of the Life Cycle?

a. empty nest 1

b. empty nest 2

c. mature

d. they vary in stages

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Answers

1. C

2. B

3. C

4. A

5. D

Bibliography

Anonymous (2001), “Graying Boomers, Booming Teens.” Inc. (May 29): 86-7.

Bainbridge, Jane (1998), “Baby-Boomers: A Generation Vexed,” Marketing, (7 May) Infotrac online database. Article A20817420.

Bernstein, Paula (2001), “Admen Bank on Boomers,” Variety, (Feb 5) 29,36.

Bond, Kathy (1997), “Frightened and Fifty,” Marketing, (May 22). Infotrac online database. Article A19623922.

Chura, Hillary (2002), “Draft Codger,” Advertising Age. (February) 4,46.

Dychtwald, Maddy Kent (1997), "Marketplace 2000: Riding the Wave of Population Change," Journal of Consumer Marketing 14 (1997): 271-275.

Lipke, David J. (2000), “Fountain of Youth,” American Demographics, (September): 37-40.

Malley, Mike (1998), “Boomers Loyal to Brands,” Hotel & Motel Management, (January 12): 15.

Marney, Jo (1995), “The Psychology of Age: New Challenges from Busters to Bridgers,” Marketing, (August 21):14.

McDonald, Marci (2001), “Forever Young.” U.S. News & World Report, (April 2) Infotrac online database. Article A72644838.

Morgan, Richard (1998), “Madison Avenue Bums Out Boomers: Youth Fixation Moves Older Adults to Change Channel.” Variety, March: 29-30.

Morton, Linda P. (2001), “Segmenting Baby Boomers,” Public Relations Quarterly, (Fall): 46-7.

Patel, Dave (2002), “Rearranging the Life Cycle.” HRMagazine, (January): 104

Smart, Tim (2001), “Not Acting Their Age,” U.S. News & World Report, (June 4):54-60.

Smith, J. Walker, and Ann Clurman (1997), “Generational Marketing.” Inc. (April). Infotrac online database. Article A19257602.

Wellner, Alison Stein (2000), “Generational Divide: Are Traditional Methods of Classifying a Generation Still Meaningful in a Diverse and Changing Nation?” American Demographics, (October):52-58.