Consumer Behavior: Building Marketing Strategy 13th Edition by Delbert Hawkins, David Mothersbaugh

Exercise 36

Beyond Stereotypes: Segmenting the Boomer Market
The baby boom market is the largest generational segment in America but also one of the most diverse. Such diversity requires that marketers move beyond stereotypes and understand segmentation opportunities that exist. Below we deal with common stereotypes of the boomer market and provide insight as to segmentation opportunities. 48
• Boomers all have the same values and outlook -This is far from true. Boomers are quite different in values and outlook in part due to differences in life experiences relating to health and finances. One study by Focalyst finds three boomer segments based on outlook:
Yesterday (25 percent)-This group believes that life was better in the '50s and is not optimistic about the future. Health and financial issues are major factors for this group. Marketing messages that reassure, comfort, and acknowledge the efforts of this group may be particularly effective.
Today (30 percent)-This group believes that they live in exciting times and is happy with their lives today. Strong physical and financial health contribute to this positive outlook. Marketing messages that focus on the now, indulgence, and the good life may be particularly effective.
Tomorrow (45 percent)-This group believes that the future will be better than today and remains positive about the future despite negative financial or health events. This group is highly connected with friends and community, which may explain their positive outlook. Marketing messages that emphasize stability, optimism, and spirituality may be particularly effective.
• Boomers are self-centered -The phrase "Me Generation" was created for baby boomers. However, many boomers are much more socially and environmentally conscious than that label suggests. One study estimates that roughly half of all boomers are "Green Boomers," meaning they buy environmentally friendly products.
• Boomers are not tech savvy -The Internet and mobile technology are an important part of many boomers' lives. Roughly 80 percent of boomers are online, and roughly half of all boomers engage in wireless Internet use, which includes wireless Internet connection via laptop, checking e-mail via cell phone, using the Internet on a cell phone, and using IM on a cell phone.
• Boomers are married empty nesters who are downsizing -Only 25 percent of boomers are married empty nesters. Nearly 40 percent of boomers have children under the age of 18 living at home and many also have boomerang children, and live-in parents. Others are singles who are actively dating. In terms of housing, less than 10 percent of boomers plan to downsize in the next five years.
• Boomers are all retiring early and wealthy -Over half of all boomers plan to work and\or volunteer beyond their retirement age. One in six is on their "second career" and about the same percentage are engaged in furthering their education. Although many will continue to work out of enjoyment, many also work due to financial need, increases in retirement age, and so on. Only 10 percent of boomers make $150,000 or more a year, and the net worth of the bottom 20 percent of boomers is a mere $2,480.
Clearly the baby boom generation is large and diverse and marketers must understand the boomer market and its segments in designing appropriate marketing strategies.
Explain the key factors driving the outlook differences among boomers