Consumer Behavior 2015-2016 [11 ed.] 9781577832003, 9781577832188

Citation preview

Consumer Behavior 2015-2016

Richard K. Miller & Associates ————— since 1972 —————

CONSUMER BEHAVIOR 2015-2016 11th Edition RKMA MARKET RESEARCH HANDBOOK SERIES

By: Richard K. Miller and Kelli Washington

Published by: Richard K. Miller & Associates 4132 Atlanta Highway, Suite 110 Loganville, GA 30052 (888) 928-RKMA (7562) www.rkma.com

Richard K. Miller & Associates

————— since 1972 —————

CONSUMER BEHAVIOR 2015-2016 11th Edition RKMA MARKET RESEARCH HANDBOOK SERIES

Copyright © 2015 by Richard K. Miller & Associates All rights reserved. Printed in the United States of America. Use of the electronic edition of this publication is limited to internal use within the purchasing organization. The electronic edition may be stored on computers, Intranets, servers, and networks by organizations which have purchased this publication, and those for which an employee has made such purchase. Copies, including multiple copies, may be printed from the electronic edition for use within the purchasing organization. Libraries may store the electronic edition on an archival database or proxy server for access by library users. Governmental agencies purchasing this publication may share the content within the agency or department. Universities and colleges may share the information within their campus, but not with other universities. Membership associations may use the information within their internal organization, but may not distribute to their membership. This publication may not be stored on Internet websites, nor may it be file-shared through the Internet. This publication may not be resold or distributed without prior written agreement with the publisher. While every attempt is made to provide accurate information, the author and publisher cannot be held accountable for any errors or omissions.

ISBN Number (print edition): 9781577832003 ISBN Number (electronic edition): 9781577832188

Richard K. Miller & Associates 4132 Atlanta Highway, Suite 110 Loganville, GA 30052 (888) 928-RKMA (7562) www.rkma.com

CONTENTS

PART I: THE AMERICAN CONSUMER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 1

DEMOGRAPHIC OVERVIEW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Population Distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Median Age.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Births.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Generational Demographics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Race/Ethnicity Distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23 23 25 26 26 27 28

2

CONSUMER INCOME & WEALTH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Household Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Income Distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Income By State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Household Wealth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 Recovery From The Great Recession.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 Income And Wealth Inequality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 The Middle Class. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8 Poverty And Economic Insecurity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29 29 30 30 31 32 32 35 36 38

3

CONSUMER DEBT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Household Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Mortgage Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Credit Card Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Student Loans.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Medical Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 Debt in Collections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39 39 40 41 41 42 43 43

4

HOUSEHOLDS & HOUSING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Households. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Shared Households. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Home Ownership vs. Renting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4 U.S. Housing Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 New Homes And Apartments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 Housing Affordability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44 44 45 46 48 48 49

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4.7 Vacation Homes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 Home Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9 Smart Homes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.10 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49 50 50 51

5

COMMUNITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Where People Live. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Most Desirable Places To Live. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Metropolitan Communities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Rural Communities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 Satisfaction With Communities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6 Generational Preferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 Important Community Attributes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.8 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

52 52 53 54 54 55 57 58 58

6

PERSONAL LIFE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 Satisfaction With Personal Life. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 Personal Financial Situation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 Economic Wellbeing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4 Happiness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 Stress. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.6 Personal Health. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 Weight Control and Dieting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8 Exercise And Fitness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9 Eating. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.10 Alcohol Consumption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.11 Travel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.12 Charitable Giving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.13 Volunteering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.14 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

59 59 59 60 60 62 63 63 64 65 67 68 69 70 70

PART II: SPENDING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 7

CONSUMER SPENDING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 Consumer Contribution to the GDP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 Spending Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 Spending Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4 Consumer Price Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5 Daily Spending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

RETAIL SPENDING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 8.1 The U.S. Retail Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

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73 73 73 74 75 76 76

8.2 8.3 8.4 8.5 8.6 8.7 9

GAFO Spending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-Commerce.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back-to-School. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Christmas Season Holiday Spending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State-by-State Retail Spending.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

77 78 80 81 82 83

ENTERTAINMENT & LEISURE SPENDING.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 9.1 Expenditures On Leisure Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 9.2 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

PART III: ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 10 USE OF TIME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.1 Americans’ Use of Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.2 Older Americans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.3 Students. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.4 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

88 88 89 89 90

11 USE OF MEDIA & THE INTERNET.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 State Of The Media.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Time Spent Using Media.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3 Internet And Mobile Access. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.4 Online Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.5 Time Spent With Mobile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.6 Cross-Platform Access Of Content. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.7 Use Of Social Network Sites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.8 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

91 91 92 93 93 94 94 95 96

12 CULTURAL ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 12.1 Public Participation In The Arts.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 12.2 Performing Arts Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 12.3 Survey Of Metropolitan Areas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 12.4 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 13 LEISURE ACTIVITIES.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.1 Time Spent On Leisure Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2 Top 10 Leisure Activities in 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.3 Favorite Leisure Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.4 Leisure Activities For Millennials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.5 Leisure Time For Seniors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.6 Vacations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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102 102 103 105 106 107 108 109

14 SPORTS & RECREATION ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2 Aerobics, Conditioning And Strength. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.3 Individual Sports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.4 Racquet Sports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.5 Team Sports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.6 Outdoor Sports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.7 Water Sports.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.8 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

110 110 110 111 111 112 112 113 113

15 AWAY FROM HOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.2 Airports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.3 Bars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.4 Coffeehouses And Sandwich Shops.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.5 Convenience Stores. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.6 Drug Stores.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.7 Fast Food And Casual Dining Restaurants.. . . . . . . . . . . . . . . . . . . . . . . . 15.8 Gas Stations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.9 Grocery Stores. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.10 Health Clubs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11 Large Retail or Department Stores. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.12 Movie Theaters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13 Public Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.14 Shopping Malls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.15 Stadiums And Arenas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.16 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

114 114 114 115 116 117 117 118 119 120 121 121 122 123 124 124 125

16 WORK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.1 The American Workforce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.2 Time Spent Working. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 Employment And Education Attainment. . . . . . . . . . . . . . . . . . . . . . . . . . . 16.4 Job Satisfaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.5 Workplace Flexibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.6 Working At Home. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

126 126 127 128 129 130 131 132

17 USE OF TRANSPORTATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.2 Driving.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.3 Vehicle Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.4 Air Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

133 133 133 134 135

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17.5 17.6 17.7 17.8 17.9

Private Aviation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rail Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Intercity Bus Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Public Transit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

136 136 137 137 138

PART IV: SHOPPING BEHAVIORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 18 IN-STORE SHOPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.1 Preference For In-Store. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.2 Shopping Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.3 How America Shops. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4 The In-Store Experience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.5 Self-Service.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

140 140 141 141 143 144

19 ONLINE SHOPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.2 Why People Shop Online. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.3 Characteristics Of Online Shopping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.4 Expectations Online. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.5 Response To Shopping Incentives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.6 Shopping On Social Sites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

145 145 146 147 147 149 149

20 MOBILE SHOPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.2 Use Of Mobile Devices For Online Purchases. . . . . . . . . . . . . . . . . . . . . . 20.3 Market Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.4 Customer Service For Mobile Shoppers. . . . . . . . . . . . . . . . . . . . . . . . . . .

151 151 151 151 152

21 PEER-TO-PEER SHOPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.2 Market Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.3 The Sharing Economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.4 Economic Impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.5 Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

153 153 154 154 156 157

22 OMNICHANNEL SHOPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.2 Preference For Omnichannel Retail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.3 Showrooming and Webrooming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.4 Cross-Channel Shopping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.5 Buy Online, Pick Up In-Store. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.6 Catalogs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

159 159 159 160 161 162 163

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PART V: BEHAVIORAL ANALYSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 23 BRAND ENGAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.1 Importance of Brand Engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.2 Favorite Brands.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.3 Influence of Social Network Connections. . . . . . . . . . . . . . . . . . . . . . . . . .

165 165 166 166

24 BRAND LOYALTY.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.1 Brand Preferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.2 Store Brands. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.3 Brand Loyalty In Travel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.4 Increasing Brand Loyalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

168 168 169 170 170

25 BUYING AMERICAN-MADE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.1 Preference For U.S.-Made Products.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.2 Buying American By Product Type. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.3 Buy American Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

172 172 173 174

26 BUYING LOCAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.1 Buying Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.2 Locally Sourced Food Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.3 Buy Local Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

176 176 176 178

27 CONSUMER CONFIDENCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.2 Consumer Comfort Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.3 Consumer Confidence Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.4 Consumer Sentiment Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.5 Current Economic Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.6 Economic Confidence Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

179 179 179 179 180 180 181

28 CUSTOMER SATISFACTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.2 Factors Contributing To High Customer Satisfaction. . . . . . . . . . . . . . . . . 28.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

182 182 182 185

29 ENVIRONMENTALLY CONSCIOUS CONSUMERISM. . . . . . . . . . . . . . . . . . . 29.1 Concerns About The Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.2 Use Of Products With An Environmental Benefit. . . . . . . . . . . . . . . . . . . . 29.3 Paying A Premium For Green Products. . . . . . . . . . . . . . . . . . . . . . . . . . . 29.4 Environmentally Focused Activities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

186 186 186 187 188

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30 GIFT GIVING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.2 Characteristics of Gift Giving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.3 Gift Cards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.4 Responsible Gift Giving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.5 Self Gifting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.6 Wedding Gift Giving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.7 Graduation Gift Giving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.8 Returning Gifts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

190 190 190 191 192 193 193 194 194

31 INFLUENCE OF GASOLINE PRICES.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 31.1 Impact On Consumer Spending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 31.2 Price Drop In 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 32 PAYMENT PREFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.1 Credit and Debit Cards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2 How Americans Pay Their Bills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.3 Point-Of-Sale Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.4 Online Retail Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.5 Proximity Mobile Payments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

197 197 197 198 199 199 200

33 PRICING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.2 Dynamic Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.3 Price-Matching. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.4 Personalized Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.5 Pricing Research Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

201 201 202 203 206 207

34 PRIVACY ISSUES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.2 Privacy Concerns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.3 Mobile Privacy.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.4 Whom Do Consumers Trust?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

209 209 210 212 212

35 PURCHASE DECISION MAKING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.1 Top Influencers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.2 Trust in Shopping Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.3 Influence Of Social Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.4 Shopper Decision Priorities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.5 Deals and Bargains.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

214 214 215 216 216 218

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36 RESPONSE TO ADVERTISING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.1 Preferred Media For Ads.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.2 Positive Response To Ads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.3 Negative Response To Ads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.4 Response to Irrelevant Ads.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.5 Ignoring Ads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.6 Ad Influence On Millennials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.7 Response To Marketing Emails. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

219 219 219 220 220 221 221 222

37 RESPONSE TO CUSTOMER SERVICE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.1 Loyalty.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.2 Comparison With Low Prices, Deals, And Convenience. . . . . . . . . . . . . . 37.3 Impact By Segment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.4 Factors Contributing To Good Customer Service. . . . . . . . . . . . . . . . . . . .

223 223 223 224 225

38 RESPONSE TO REVIEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.1 Online Consumer Reviews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.2 Online Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.3 Travel Reviews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.4 Consumer Electronics Reviews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

226 226 226 227 227

39 SPENDING FOR GOODS VS. EXPERIENCES. . . . . . . . . . . . . . . . . . . . . . . . . 39.1 A Shift From Goods To Experiences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.2 Purchase Satisfaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.3 Research Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

229 229 230 231

PART VI: AFFLUENT CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 40 LUXURY & AFFLUENT MARKETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.2 Upper-Class Consumers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.3 Affluent Consumers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.4 Wealthy Consumers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.5 Rich and Ultra-rich Consumers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.6 Spending By High-Net-Worth Households. . . . . . . . . . . . . . . . . . . . . . . . . 40.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

233 233 233 233 234 234 234 236

41 POPULATION CENTERS OF U.S. AFFLUENCE. . . . . . . . . . . . . . . . . . . . . . . . 41.1 Most Affluent ZIP Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.2 Most Expensive ZIP Codes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.3 Millionaire Households By State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.4 Millionaires By Metropolitan Area. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

237 237 239 240 241 241

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42 MARKET SURVEYS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1 Affluent Market Tracking Study.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.2 Affluent Survey And Affluent Barometer. . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3 The Affluent Audience Online. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.4 Luxury And Affluence Monthly Pulse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.5 Luxury Trend Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.6 WealthSurvey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

242 242 242 243 244 245 246 247

PART VII: BRAND PREFERENCE SURVEYS. . . . . . . . . . . . . . . . . . . . . . . . 248 43 BRAND EQUITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.2 Top Brands Among Adults. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

249 249 249 273

44 BRAND INDEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.2 Buzz Ranking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

274 274 274 278

45 CUSTOMER EXPERIENCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.2 Temkin Ratings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

279 279 279 282

46 CUSTOMER LOYALTY ENGAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.2 Customer Loyalty Engagement Rankings.. . . . . . . . . . . . . . . . . . . . . . . . . 46.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

283 283 283 290

47 CUSTOMER SATISFACTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.2 ACSI Scores. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

291 291 291 299

48 CUSTOMER SERVICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.2 Customer Service Champions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

300 300 300 301

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49 FAN BRAND LOYALTY ON FACEBOOK.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.2 Brand Satisfaction 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.3 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

302 302 302 302

PART VIII: ETHNIC FOCUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 50 AFRICAN-AMERICAN CONSUMERS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.2 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.4 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.5 Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

304 304 304 305 306 307 307

51 ARAB-AMERICAN CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.2 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.4 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

308 308 308 309 309 310

52 ASIAN-AMERICAN CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.4 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.5 Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

311 311 311 312 313 315 315

53 HISPANIC- & LATINO-AMERICAN CONSUMERS.. . . . . . . . . . . . . . . . . . . . . . 53.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.2 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.4 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.5 Hispanic Use Of Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.6 Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

316 316 316 317 318 321 322 322

54 JEWISH-AMERICAN CONSUMERS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 54.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 54.2 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324

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54.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 54.4 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 54.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 55 MUSLIM-AMERICAN CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.2 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.4 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

328 328 328 330 330 330

56 NATIVE-AMERICAN CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.2 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.4 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

331 331 331 332 333 334

PART IX: GENDER FOCUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 57 FEMALE CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.2 Female Consumer Segments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.3 Working Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.4 Mothers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.5 Working Mothers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.6 Engaging Moms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.7 Mobile Moms.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.8 Affluent Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.9 Purchase Decision Making. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.10 Purchasing Power.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

337 337 337 338 339 340 341 341 342 343 343

58 MALE CONSUMERS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.2 Fathers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.3 Gender Roles Are Blurring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.4 Purchasing Decision Making.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

344 344 344 346 346

PART X: GENERATIONAL FOCUS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348 59 GENERATIONAL COMPARISONS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 59.1 Unique Characteristics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 59.2 Shopping.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351

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59.3 Use Of The Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 59.4 Use Of Social Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 59.5 Use Of Cellphones and Mobile Devices. . . . . . . . . . . . . . . . . . . . . . . . . . . 354 60 SENIOR CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.2 Generational Characteristics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.4 Spending.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.5 Media Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.6 Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

355 355 355 357 357 358 359

61 BABY BOOMER CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.2 Generational Characteristics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.3 Spending Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.4 Media Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.5 Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

360 360 360 361 361 362

62 GENERATION X CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.2 Generational Characteristics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.3 Spending Behaviors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.4 Media Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.5 Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

364 364 365 365 366 366

63 MILLENNIAL CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.2 Generational Characteristics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.3 Impact Of The Great Recession. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.4 Affluent Millennials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.5 Shopping Attitudes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.6 Media Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

368 368 369 370 370 371 372

64 YOUTH CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.2 Generational Characteristics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.3 Spending Behaviors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.4 Media Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

374 374 374 375 376 379

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PART XI: SEGMENTATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 65 COLLEGE STUDENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.1 Student Population. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.2 Spending.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.3 Use Of Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.4 The College Student Mindset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

381 381 381 382 383 384

66 CONSUMERS WITH DISABILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66.2 Market Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66.3 Marketing To People With Disabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 66.4 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

385 385 386 386 387

67 FAMILIES WITH CHILDREN.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.2 Cost Of Raising Children. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.3 Shopping And Spending Characteristics.. . . . . . . . . . . . . . . . . . . . . . . . . . 67.4 Intergenerational Households. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.5 Stepfamilies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.6 Market Trends: Adult Children At Home. . . . . . . . . . . . . . . . . . . . . . . . . . . 67.7 Centers For Family Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

388 388 388 390 390 391 392 392

68 FAMILY CAREGIVERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.2 Eldercare.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.3 Demographics Of Caregivers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.4 The Cost Of Caregiving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.5 Support For Caregivers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

393 393 394 394 395 396 396

69 GAY & LESBIAN CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.2 Coming Out.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.3 Same-Sex Marriage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.4 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.5 Population Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.6 Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.7 Internet Usage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69.8 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

398 398 399 399 400 401 403 404 405

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70 IMMIGRANT CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.2 Second-Generation Americans.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.3 U.S.-Born Children. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.4 Life In The U.S.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.5 Assimilation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.6 Future Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

406 406 408 408 409 409 410 411

71 MARRIED COUPLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.2 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.3 Trends.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.4 Research Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

412 412 413 413 415

72 MILITARY CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.1 Active Personnel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.2 Veterans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3 Buying Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.4 The Military Exchange System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

416 416 416 417 418

73 PET OWNERS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.2 Pets Owner Demographics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.3 Pets As Family. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.4 Spending On Pets.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

419 419 419 420 420 421

74 RETIREES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.1 Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.2 Retiree Consumers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.3 Financial Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.4 Primary Influences On Age Of Retirement. . . . . . . . . . . . . . . . . . . . . . . . . 74.5 Trends in Retirement and Semi-retirement. . . . . . . . . . . . . . . . . . . . . . . . . 74.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

422 422 422 423 424 425 425

75 SINGLE CONSUMERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.2 Growth Of Singles Demographics.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.3 Cohabitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.4 Spending Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.5 Singles Geodemographics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75.6 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

427 427 428 428 429 429 436

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PART XII: GEODEMOGRAPHICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437 76 MEGAPOLITAN REGIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.2 Megapolitan Regions Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.3 Regional GDP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.4 Population Projections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.5 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

438 438 438 439 440 441

77 METROPOLITAN PROFILES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.2 Atlanta.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.3 Baltimore.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.4 Birmingham.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.5 Boston.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.6 Charlotte. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.7 Chicago.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.8 Cleveland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.9 Columbus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.10 Dallas/Fort Worth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.11 Denver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.12 Detroit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.13 Greenville/Spartanburg/Asheville. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.14 Hartford/New Haven. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.15 Houston. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.16 Kansas City.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.17 Las Vegas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.18 Los Angeles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.19 Miami/Fort Lauderdale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.20 Milwaukee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.21 Minneapolis/Saint Paul. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.22 Nashville. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.23 New York City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.24 Orlando. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.25 Philadelphia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.26 Phoenix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.27 Pittsburgh. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.28 Portland, Oregon.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.29 Raleigh-Durham. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.30 Sacramento. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.31 San Francisco. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.32 Seattle.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

442 442 443 444 445 446 447 448 449 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474

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77.33 St. Louis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475 77.34 Washington, D.C.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476 78 METROPOLITAN STATISTICAL AREAS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 78.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 78.2 MSA Populations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 79 MICROPOLITAN STATISTICAL AREAS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 79.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 79.2 ìSA Populations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 80 STATE POPULATION PROFILES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.2 State Populations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.3 Median Age.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.4 Racial and Ethnic Distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.5 Diversity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

500 500 500 501 502 511

81 STATE ECONOMIC PROFILES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.2 Personal Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.3 Unemployment Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.4 Job Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

512 512 512 513 514

82 POPULATION MIGRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.2 Migration Trends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3 Reasons For Moving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.4 Moving In Retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.5 Metropolitan Relocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.6 Relocation Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.7 Market Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

515 515 515 517 518 519 520 521

APPENDIX A - ACADEMIC RESEARCH CENTERS.. . . . . . . . . . . . . . . . . . . . . . . . 522 APPENDIX B - ANALYSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525 APPENDIX C - ASSOCIATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 APPENDIX D - BLOGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530 APPENDIX E - GOVERNMENT AGENCIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533

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APPENDIX F - MARKET RESEARCH SOURCES. . . . . . . . . . . . . . . . . . . . . . . . . . 534 APPENDIX G - PERIODICALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537 APPENDIX H - RESEARCH STUDIES & SURVEYS.. . . . . . . . . . . . . . . . . . . . . . . . 538 REFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540

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PART I: THE AMERICAN CONSUMER

CONSUMER BEHAVIOR 2015-2016

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1 DEMOGRAPHIC OVERVIEW

1.1 Population Distribution Census 2010 counted the U.S. population on April 1, 2010 at 308.75 m illion, a 9.7% increase over the count of 281.42 million from Census 2000. The U.S. Census Bureau (www.census.gov) estimated the U.S. population as of November 2014 at 319.14 million. There is in the United States, on average, one birth every 8 seconds, one death every 15 seconds, one international migrant (net) every 38 seconds, and a net population gain of one person every 14 seconds. The following is the population distribution by gender and age at year-end 2013: Age

• • • • • • • • • • • • • • • • • • • • • • • • •

0: 1: 2: 3: 4: 5: 6: 7: 8: 9: 10: 11: 12: 13: 14: 15: 16: 17: 18: 19: 20: 21: 22: 23: 24:

Male

Female

0.64% 0.64% 0.65% 0.64% 0.64% 0.67% 0.67% 0.66% 0.66% 0.66% 0.66% 0.65% 0.67% 0.68% 0.67% 0.67% 0.67% 0.68% 0.70% 0.71% 0.72% 0.74% 0.75% 0.75% 0.72%

0.61% 0.61% 0.62% 0.62% 0.62% 0.64% 0.64% 0.64% 0.63% 0.64% 0.63% 0.63% 0.64% 0.65% 0.64% 0.64% 0.64% 0.65% 0.66% 0.67% 0.68% 0.70% 0.72% 0.72% 0.69%

Age

• • • • • • • • • • • • • • • • • • • • • • • • •

25: 26: 27: 28: 29: 30: 31: 32: 33: 34: 35: 36: 37: 38: 39: 40: 41: 42: 43: 44: 45: 46: 47: 48: 49:

CONSUMER BEHAVIOR 2015-2016

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Male

Female

0.71% 0.69% 0.70% 0.70% 0.67% 0.68% 0.68% 0.67% 0.69% 0.65% 0.63% 0.62% 0.61% 0.63% 0.60% 0.61% 0.64% 0.68% 0.69% 0.65% 0.64% 0.64% 0.65% 0.69% 0.70%

0.68% 0.67% 0.67% 0.68% 0.66% 0.67% 0.68% 0.67% 0.68% 0.64% 0.63% 0.63% 0.61% 0.63% 0.61% 0.62% 0.65% 0.69% 0.70% 0.66% 0.65% 0.65% 0.66% 0.70% 0.72%

Age

• • • • • • • • • • • • • • • • • • • • • • • • • •

50: 51: 52: 53: 54: 55: 56: 57: 58: 59: 60: 61: 62: 63: 64: 65: 66: 67: 68: 69: 70: 71: 72: 73: 74: 75:

Male

Female

0.70% 0.70% 0.71% 0.71% 0.69% 0.68% 0.67% 0.65% 0.64% 0.61% 0.59% 0.56% 0.54% 0.53% 0.52% 0.51% 0.53% 0.39% 0.38% 0.37% 0.38% 0.33% 0.30% 0.28% 0.26% 0.25%

0.72% 0.72% 0.73% 0.74% 0.72% 0.71% 0.71% 0.69% 0.68% 0.66% 0.63% 0.61% 0.60% 0.58% 0.57% 0.56% 0.59% 0.43% 0.43% 0.42% 0.43% 0.38% 0.35% 0.33% 0.31% 0.30%

Age

• • • • • • • • • • • • • • • • • • • • • • • • •

76: 77: 78: 79: 80: 81: 82: 83: 84: 85: 86: 87: 88: 89: 90: 91: 92: 93: 94: 95: 96: 97: 98: 99: 100+:

Male

Female

0.23% 0.21% 0.20% 0.18% 0.17% 0.16% 0.15% 0.14% 0.12% 0.11% 0.10% 0.09% 0.07% 0.06% 0.05% 0.04% 0.03% 0.02% 0.02% 0.01% 0.01% 0.01% 0.00% 0.00% 0.00%

0.28% 0.27% 0.26% 0.24% 0.23% 0.22% 0.22% 0.21% 0.19% 0.18% 0.17% 0.15% 0.14% 0.12% 0.11% 0.09% 0.08% 0.06% 0.04% 0.04% 0.03% 0.02% 0.01% 0.01% 0.02%

_________________________________________________________________

“Overall, there are now more people in their 20s than in any other 10-year group. In 2010, those in their 40s were the largest group.” The New York Times, 5/23/14 _________________________________________________________________

•

The U.S. Census Bureau defines four statistical regions, as follows: Region 1 - Northeast: Connecticut, Maine, Massachusetts, New Jersey, New York, New Hampshire, Pennsylvania, Rhode Island, Vermont

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•

Region 2 - Midwest:

Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, Washington D.C., West Virginia Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming

•

Region 3 - South:

•

Region 4 - West:

• • • •

The population distribution at year-end 2013 by region was as follows: Northeast: 54.52 million (18.3% of total) Midwest: 66.03 million (22.1% of total) South: 109.08 million (36.6% of total) West: 68.75 million (23.0% of total)

1.2 Median Age The median age of the U.S. population was reported by Census 2010 as follows: • Female: 38.5 • Male: 35.8 • Both genders: 37.2 The median age was relatively unchanged through 2013. But, overall the U.S. population is getting older and will continue to do so for the foreseeable future. _________________________________________________________________

“The country has been getting older. The median age of the population was 37 in 2013. The Census Bureau forecasts it will continue to rise, reaching 41 years old in 2059. In 1970, the median age was 27, just one year higher than it had been in 1930.” The New York Times, 5/23/14 _________________________________________________________________

In 1950, just 8% of Americans were 65 or older. By 2013, the figure was 14% and it is expected to be 20% by 2030.

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1.3 Births According to the National Center for Health Statistics (www.cdc.gov/nchs), there were 3,957,577 births in the U.S. in 2013, slightly higher than the 3,952,841 recorded in 2012 and 8% below the all-time high of 4,316,233 in 2007. Although the overall number of births held steady in 2013, the fertility rate fell to a new all-time low of 62.9 births per 1,000 women ages 15-to-44. This is 9% below the rate of 69.3 in 2007. The fertility rates of women ages 15-to-19, 20-to-24, and 25-to-29 all fell to new record lows in 2013. _________________________________________________________________

“Never before have young women had so few children. The first-birth rate also hit an all-time low in 2013, with the rate dropping for women in every age group under age 30. Clearly, young women are reluctant to have children, and the number of births is essentially unchanged only because older women are playing catch up before time runs out. The seeming stability in births belies the havoc wreaked by the Great Recession on the lives of young adults.” Demo Memo, 5/29/14 _________________________________________________________________

1.4 Generational Demographics Marketers typically categorize consumers into five generations, as follows: Year of Birth

• • • • •

Age (in 2015)

Seniors: 1945 and before Baby Boomers: 1946-1964 Generation X: 1965-1979 Millennials (Gen Y): 1980-2000 Generation Z: 2001-present

70 and older 51-to-69 36-to-50 15-to-35 14 and younger

Population

36 million 76 million 61 million 93 million 53 million

Generational assessments explore how the era in which people live influences their behavior. Many consumers who lived through the Great Depression of 1929, for example, remained frugal their entire lives because of the profound impact it had on them. Baby Boomers grew up without psychological scars from the Depression and generally spend more freely than their parents’ generation. Subsequent generations

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have grown up in an age of abundance, easy credit, and a taste for luxury. Spending and lifestyles of Generation Z will likely be influenced by the Great Recession of 20082009. Spending is also influenced by life cycles. Most members of Generation X are now in their peak earning and spending years. Baby Boomers, some looking toward retirement or semi-retirement, are beginning to spend less. Generational demographics are further assessed in Part X of this handbook.

1.5 Race/Ethnicity Distribution The following is the distribution by race/ethnicity reported by Census 2010 and change from Census 2000: • • • • • • •

Census 2010

Change

74.4% 12.6% 4.8% 0.9% 0.2% 6.2% 2.9%

5.7% 12.3% 43.3% 18.4% 35.4% 24.4% 32.2%

White alone: Black or African American alone: Asian alone: American Indian or Alaska Native alone: Native Hawaiian or other Pacific Islander alone: Some other race alone: Two or more races:

As reported in Census 2010, 50.5 million people, or 16% of the total population, identify themselves as Hispanic or Latino. The Hispanic population increased from 35.3 million in 2000, when this group made up 13% of the total population. The Hispanic population increased 43.0% between Census 2000 and Census 2010, while the non-Hispanic population increased 4.9% during that period. The Census Bureau reported that the U.S. population g rew by 6.8 million between 2010 and 2013. The population by race/ethnicity at year-end 2013 and 2010-2013 growth are as follows: • • • •

Non-Hispanic white: Hispanic: Black: Asian:

Population

Increase

197.84 million (62.6% of total) 54.07 million (17.1% of total) 45.00 million (14.2% of total) 19.44 million (6.1% of total)

445,578 3,323,989 1,659,412 1,633,868

The ethnic composition of the U.S. population by generation is as follows: • • • •

Baby Boomers: Generation X: Millennials (Gen Y): Generation Z:

Caucasian

Hispanic

72% 62% 58% 54%

11% 18% 20% 24%

A frican American Asian American Other

11% 12% 14% 14%

4% 6% 5% 4%

2% 2% 3% 4%

Ethnic demographics are further assessed in Part VIII of this handbook.

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1.6 Market Resources U.S. Population Clock, U.S. Census Bureau; provides U.S. population estimate on a daily basis. (www.census.gov/main/www/popclock.html)

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2 CONSUMER INCOME & WEALTH

2.1 Household Income According to the U.S. Census Bureau (www.census.gov), real median household income in the United States in 2013 was $51,939, not statistically different in real terms from the 2012 median of $51,759. This was the second consecutive year that the annual change was not statistically significant, following two consecutive years of annual declines in median household income. In 2012, real median household income was 8% lower than in 2007, the year before the Great Recession. Inflation-adjusted median household income peaked at an all-time high of $56,895 in 1999. Median household incom e prior to and following the Great Recession has been as follows: • 2007: $56,436 • 2008: $54,423 • 2009: $54,059 • 2010: $52,646 • 2011: $51,842 • 2012: $51,758 • 2013: $51,939 _________________________________________________________________

“Median household income in 2013 was 8.0% below the median of 2007 (the Great Recession officially began in December 2007), after adjusting for inflation. But 2007 was nothing special as far as median household income is concerned because the median had peaked years before that – all the way back in 1999.” Demo Memo, 9/16/14 _________________________________________________________________

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Median household income by age in 2013 and change since 1999 – the year that household income peaked – was as follows: • • • • • •

Under age 25: 25-to-34: 35-to-44: 45-to-54: 55-to-64: 65 and older:

2013 HH Income

Change from 1999

$34,311 $52,702 $64,973 $67,141 $57,538 $35,611

- 2.4% -10.4% - 8.5% -15.6% - 7.9% 11.7%

2.2 Income Distribution In 2013, median household income was as follows (source: U.S. Census Bureau): • Married-couple family households: $76,509 • Non-family households: $31,178

• • • •

By region, median household income in 2013 was as follows: West: $56,181 Northeast: $56,775 Midwest: $52,082 South: $48,128

• • • • • •

By householder age, median household income in 2013 was as follows: Under 24: $34,311 25-to-34: $52,702 35-to-44: $64,973 45-to-54: $67,141 55-to-64: $57,538 65 and older: $35,611

• •

By community, median household income in 2013 was as follows: Inside metropolitan areas: $54,042 Outside metropolitan areas: $42,881

In 2013, the real median earnings of men and women who worked full time were $49,398 and $37,791, respectively. The 2012 female-to-male earnings ratio was 0.77, a figure that has not experienced a significant annual change since 2007.

2.3 Income By State Median income by state in 2013 was as follows (source: Census Bureau):

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• • • • • • • • • • • • • • • • • • • • • • • • • •

Alabama: Alaska: Arizona: Arkansas: California: Colorado: Connecticut: Delaware: District of Columbia: Florida: Georgia: Hawaii: Idaho: Illinois: Indiana: Iowa: Kansas: Kentucky: Louisiana: Maine: Maryland: Massachusetts: Michigan: Minnesota: Mississippi: Missouri:

$42,738 $62,855 $49,165 $39,752 $57,688 $60,729 $66,481 $50,951 $63,435 $47,313 $48,130 $59,244 $50,193 $54,843 $48,691 $54,537 $51,107 $41,921 $39,637 $49,997 $69,071 $63,772 $49,771 $61,800 $39,012 $50,399

• • • • • • • • • • • • • • • • • • • • • • • • •

Montana: Nebraska: Nevada: New Hampshire: New Jersey: New Mexico: New York: North Carolina: North Dakota: Ohio: Oklahoma: Oregon: Pennsylvania: Rhode Island: South Carolina: South Dakota: Tennessee: Texas: Utah: Vermont: Virginia: Washington: West Virginia: Wisconsin: Wyoming:

$44,938 $53,364 $46,695 $70,063 $64,722 $43,091 $51,108 $41,683 $54,732 $45,709 $46,444 $54,417 $53,305 $57,346 $44,398 $52,293 $43,060 $52,854 $61,078 $55,616 $66,595 $61,598 $42,213 $54,554 $57,024

2.4 Household Wealth According to Survey of Consumer Finances, published by the Federal Reserve (www.federalreserve.gov), median household net wealth, adjusted for inflation, has been as follows: • 2007: $135,400 • 2010: $ 82,800 • 2013: $ 81,200 From 2007 to 2010, median inflation-adjusted net worth (e.g., wealth) fell 38.8% to $77,300, the same level as in 2001. This drop is attributed to the Great Recession. Median household net worth continued to drift downward between 2010 and 2013, suggesting that most households were not recovering from the recession. Many households experienced double-digit declines in net worth between 2010 and 2013, after adjusting for inflation. Following a 39% decline between 2007 and 2010, households headed by people ages 45-to-54 saw their net worth fall by an additional 17% between 2010 and 2013. CONSUMER BEHAVIOR 2015-2016

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Household segments headed by people without a high school diploma, with only some college, and the broad segment “nonwhites or Hispanics” also experienced double-digit declines in net worth between 2010 and 2013. Overall, net household wealth, which mostly consists of home equity, stock portfolios, and other savings, was $81.5 trillion in June 2014, according to the Federal Reserve. Household wealth peaked before the recession at $67.4 trillion and reached a low of $55 trillion (inflation-adjusted) in early 2009, in the depths of the recession. The distribution of wealth in the United States is as follows: • The top 20% of Americans hold 84% of U.S. wealth • The second 20% hold 11% • The third 20% hold 4% • The fourth 20% hold 0.2% • The bottom 20% hold 0.1% Twenty-five percent (25%) of American households have zero or negative net worth; 37% have a net worth of less than $12,000.

2.5 Recovery From The Great Recession More than two-thirds of Americans saw their net worth decline during the Great Recession. While 91% of the total household wealth lost during the crisis has been recovered, according to the St. Louis Federal Reserve, that recovery has been uneven: the richest households, more heavily invested in stocks, lost the most and regained the most. Adjusting for inflation and population growth, the average household has recovered only about 45% of its wealth. Since 2009, the year the recession ended, inflation-adjusted spending by the top echelon has increased 17%, compared with a 1% increase among the bottom 90%. _________________________________________________________________

“The recovery still feels like a recession to many Americans.” Janet Yellen, Chair Federal Reserve, 3/30/14 _________________________________________________________________

2.6 Income And Wealth Inequality According to Pew Research Center (www.pewresearch.org), during the first two years of the economic recovery, the mean net worth of households in the upper 7% of

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the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%. From 2009 to 2011, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3,173,895 from an estimated $2,476,244, while the mean wealth of the 111 million households in the less affluent group fell to an estimated $133,817 from an estimated $139,896. _________________________________________________________________

“The wealth recovery has been concentrated on the wealthiest Americans. Although there is some evidence that those at the bottom are also seeing an economic lift, the aggregate net worth for America’s economic middle is actually declining.” Pew Research Center, 9/18/14 _________________________________________________________________

In a December 2013 speech on economic mobility, President Barack Obama called income inequality and lack of upward mobility the defining challenge of our times. The Great Recession widened the gap between the wealthy and the rest of the U.S. population. An ongoing assessment of income distribution at the University of California, Berkeley found that the richest 1% in America secured 19% of national income in 2012, their biggest share since 1928. The top 10% of earners held a record 48.2%. During the recovery between 2009 and 2012, real-family incomes rose by an average of 4.6%, though this was skewed by a 31.4% increase for the top 1%. For the other 99% incomes rose by just 0.4%. According to Robert Reich, Ph.D., an economics professor at University of California, Berkeley and author of Inequality For All (2013, 72 Productions), the average male U.S. worker in 1978 earned $48,000, adjusted f or inflation, while the average member of the Upper One Percent earned $390,000, or eig ht times as much. By 2010, the middle-class male’s wages had declined to $33,000, while the One Percenter was making $1.1 million, or 33 times more. Prof. Reich says that the wealthiest 400 people in the U.S. today have more money than the bottom 150 million Americans combined. A February 2014 study by the Brookings Institution (www.brookings.edu) assessed inequality in the 50 largest U.S. cities using the “95/20 ratio.” This figure represents the income at which a household earns more than 95% of all other households, divided by the income at which a household earns more than only 20% of all other households. Using Census Bureau data, Brookings found across the 50 largest U.S. cities in 2012 the 95/20 ratio was 10.8, compared to 9.1 for the country as

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a whole. The 95/20 ratio ranged from 18.8 to 6.0 among the largest cities. Cities with the highest income gap were Atlanta, San Francisco, and Miami. The 95/20 ratios for the 50 largest cities are as follows: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Atlanta, GA: San Francisco, CA: Miami, FL: Boston, MA: Washington, DC: New York, NY: Oakland, CA: Chicago, IL: Los Angeles, CA: Baltimore, MD: Houston, TX: Philadelphia, PA: Dallas, TX: Detroit, MI: Minneapolis, MN: Memphis, TN: Cleveland, OH: Tulsa, OK: Denver, CO: Fresno, CA: Charlotte, NC: Kansas City, MO: Long Beach, CA: Austin, TX: Portland, OR: Tucson, AZ: Sacramento, CA: Milwaukee, WI: El Paso, TX: Indianapolis, IN: Seattle, WA: Louisville, KY: Albuquerque, NM: Nashville, TN: San Diego, CA: San Jose, CA: Jacksonville, FL: Phoenix, AZ: San Antonio, TX: Columbus, OH:

20th Percentile

95th Percentile

95/20 Ratio

$14,850 $21,313 $10,438 $14,604 $21,782 $17,119 $17,646 $16,078 $17,657 $13,522 $17,344 $12,850 $17,811 $ 9,083 $17,753 $13,520 $ 9,432 $17,359 $19,770 $15,665 $21,998 $16,353 $19,255 $21,738 $20,152 $13,798 $17,901 $13,328 $16,206 $16,230 $26,156 $16,924 $18,646 $18,539 $25,126 $31,047 $17,411 $19,186 $18,518 $17,238

$279,827 $353,576 $164,013 $223,838 $290,637 $226,675 $223,965 $201,460 $217,770 $164,995 $205,490 $151,026 $200,367 $101,620 $193,777 $145,015 $100,903 $183,407 $208,810 $160,360 $219,126 $161,488 $185,543 $207,594 $191,492 $130,327 $168,858 $125,363 $151,745 $150,346 $239,549 $152,792 $168,121 $166,032 $224,814 $273,766 $152,329 $167,503 $158,566 $147,496

18.8 16.6 15.7 15.3 13.3 13.2 12.7 12.5 12.3 12.2 11.8 11.8 11.2 11.2 10.9 10.7 10.7 10.6 10.6 10.2 10.0 9.9 9.6 9.5 9.5 9.4 9.4 9.4 9.4 9.3 9.2 9.0 9.0 9.0 8.9 8.8 8.7 8.7 8.6 8.6

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• • • • • • • • • •

Oklahoma City, OK: Raleigh, NC: Omaha, NE: Fort Worth, TX: Colorado Springs, CO: Wichita, KS: Las Vegas, NV: Mesa, AZ: Arlington, TX: Virginia Beach, VA:

$18,835 $24,113 $19,649 $20,992 $22,213 $19,516 $21,380 $21,007 $24,169 $31,051

$160,125 $199,911 $161,910 $168,989 $175,034 $151,068 $164,344 $157,190 $175,759 $187,652

8.5 8.3 8.2 8.1 7.9 7.7 7.7 7.5 7.3 6.0

_________________________________________________________________

“A city where the rich are very rich, and the poor very poor, is likely to face many difficulties. It may struggle to maintain mixed-income school environments that produce better outcomes for low-income kids. It may have too narrow a tax base from which to sustainably raise the revenues necessary for essential city services. And it may fail to produce housing and neighborhoods accessible to middle-class workers and families, so that those who move up or down the income ladder ultimately have no choice but to move out.” Alan Berbe, Senior Fellow Brookings Institution, 2/20/14 _________________________________________________________________

2.7 The Middle Class The middle class is typically defined as households in the middle three quintiles (i.e., incomes in the 20th percentile to 80 th percentile range). In 2012, this included households with incomes between $20,591 and $104,087. An April 2014 study by the Congressional Research Service (CRS, www.loc.gov/crsinfo/about/) study ascertained that the middle class can be defined as a psychological perception, or the self assessment of one’s financial situation compared with those around them. Studies have found a strong link between relative income and self-reported happiness.

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A January 2014 survey by Pew Research Center (www.pewresearch.org) found 44% of adults identified with the middle class, a drop from 53% who did so in 2008 during the first months of the Great Recession. The share of the public who said they were in the lower or lower-middle classes rose by 15 percentage points, from 25% in 2008 to 40% in 2014. _________________________________________________________________

“The years between 2000 and 2010 were a “lost decade” for the middle class in terms of economic well-being. The proportion of Americans who identify with the middle class has never been lower.” Pew Research Center,1/27/14 _________________________________________________________________

2.8 Poverty And Economic Insecurity The U.S. poverty rate in 2013 was 14.5%, with 45.3 million people classified as living in poverty, according to the Census Bureau. This was a drop from the 15.0% poverty rate in 2012 and the first decrease in the poverty rate since 2006. The 2013 poverty rate was 2.0 percentage points higher than in 2007, however, the year before the Great Recession. While Census Bureau figures provide an official measure of poverty, they are only a temporary snapshot and do not capture the makeup of those who cycle in and out of poverty at different points in their lives. That snapshot shows that 12.6% of adults in their prime working-age years of 25-to-60 live in poverty. But measured in terms of a person’s lifetime risk, a much higher number – four in 10 adults – fall into poverty for at least a year of their lives. According to an assessment by the Associated Press (AP), the risks of falling into poverty have been increasing in recent decades, particularly among people ages 35-to-55, and coinciding with widening income inequality. For instance, people ages 35-to-45 had a 17% risk of encountering poverty during the 1969-1989 time period; that risk increased to 23% during the 1989-2009 period. For those ages 45-to-55, the risk of poverty jumped from 12% to 18% over the two periods. The AP study defines ‘economic insecurity’ as a year or more of periodic joblessness, reliance on government aid such as food stamps, or income below 150% of the poverty line. According to its assessment, the recent high rates of unemployment mean the lifetime risk of experiencing economic insecurity is 79%. Poverty and economic insecurity cut across all ethnic and racial demographics. More than 19 million whites fall below the poverty line of $23,021 for a family of four,

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accounting for more than 41% of the nation’s destitute, nearly double the number of poor blacks. Seventy-six percent (76%) of whites will experience economic insecurity by the time they turn 60. _________________________________________________________________

“Hardship is particularly growing among whites, based on several measures. Pessimism among that racial group about their families’ economic futures has climbed to the highest point since at least 1987. While poverty rates for blacks and Hispanics are nearly three times higher, by absolute numbers the predominant face of the poor is white.” Associated Press _________________________________________________________________

Dynamics Of Economic Well-Being: Poverty, a January 2014 study by the Census Bureau, reported that between 2009 and 2012, 31.6% of the U.S. population experienced poverty for at least two months. Among Hispanics, 49.6% experienced poverty, the highest of all ethnic groups. By age, the percentage was 40.6% among children, 31.0% among adults ages 18-to64, and 15.7% among the elderly. Among those without a high school diploma, 50.6% experienced poverty. Among those with some college education, 22.9% experienced at least two months of poverty. The Census Bureau defines ‘near poverty’ as having a family income either below the poverty level or within 100% to 125% of the poverty level. In 2012, 61 million people, or 19.6% of the total U.S. population, were living in or near poverty. For a family of four with two adults and two children, this is an income of $29,104 or less. For someone who lives alone, it’s an income of $14,931 or less. As a point of reference, a minimum wage full-time worker has an annual income of $15,080, just above the nearpoverty level. According to Living in Near Poverty in the United States, a May 2014 report by the Census Bureau, between 1966 and 2012, the percentage of Americans who live in or near poverty has fallen slightly – from 21.0% to 19.7%. The percentage in poverty increased from 14.7% to 15.0% during those years, while the percentage near poverty dropped from 6.3% to 4.7%. The poor and near-poor population expanded by more than 20 million between 1966 and 2012.

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2.9 Market Resources Household Income Trends, Sentier Research, 2014. (www.sentier.com) Income and Poverty In The United States, Census Bureau. (www.census.gov/hhes/www/income/income.html) Institute for Research On Poverty, University of Wisconsin-Madison, 1180 Observatory Drive, Madison, WI 53706. (608) 262-6358. (www.irp.wisc.edu) Panel Study of Income Dynamics, University of Michigan. (http://psidonline.isr.umich.edu/) Survey of Consumer Finances, Federal Reserve. (www.federalreserve.gov/econresdata/scf/scfindex.htm)

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3 CONSUMER DEBT

3.1 Household Debt According to the Federal Reserve (www.federalreserve.gov), total U.S. household debt at the end of the third quarter 2014 was $11.86 trillion. Household debt in third quarter 2014 and, for comparison, in third quarter 2013, was as follows: 3Q 2014

• • • • •

Mortgages: Student loans: Motor vehicle loans: Credit cards/revolving credit: Other:

$8.62 trillion $1.31 trillion $ 941 billion $ 849 billion $ 373 billion

3Q 2013

$7.90 trillion $1.21 trillion $ 862 billion $ 815 billion $ 491 billion

The third quarter 2013 showed the first substantial increase in outstanding balances since 2008, when Americans began reducing their debt. Non-mortgage debt further increased 6.9% between 3Q 2013 and 3Q 2014. Debt rates accumulated the most among lower income households during the recession. According to The Urban Institute (www.urban.org), the average debt for households earning $20,000 a year or less more than doubled to $26,000 between 2001 and 2010. The averages for households in slightly higher brackets grew by 50% to 90% in the same period. According to the Census Bureau (www.census.gov), the percentages of households with any debt and median household debt has been as f ollows: • • • • •

2000: 2005: 2009: 2010: 2011*:

Any Debt

Median Debt

74.2% 73.6% 72.0% 69.6% 69.0%

$49,600 $69,000 $72,900 $74,300 $70,000

* Most recent data available.

• • • • •

In 2011, median household debt by age of head of household was as follows: Under 35: $ 45,300 35-to-44: $108,000 45-to-54: $ 86,500 55-to-64: $ 70,000 65 and older: $ 26,000

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According to a 2013 report by the Pew Research Center (www.pewresearch.org), median total household debt declined 29% between 2007 and 2010 among households headed by young adults (younger than age 35), from $21,912 to $15,473. Among older households, debt dropped from $32,543 to $30,070, an 8% decline. _________________________________________________________________

“After running up record debt-to-income ratios during the bubble economy of the 2000s, young adults shed substantially more debt than older adults did during the Great Recession and its immediate aftermath. Debt reduction among young adults during bad economic times has been driven mainly by the shrinking share who own homes and cars, but it also reflects a significant decline in the share who are carrying credit card debt.” Pew Research Center _________________________________________________________________

3.2 Mortgage Debt Mortgage debt accounts for 70% of total consumer debt. Sixty-six percent (66%) of adults have mortgages on their homes, according to Harris Interactive (www.harrisinteractive.com). The Federal Reserve Bank of New York (www.newyorkfed.org) reports the percentage of outstanding mortgages in foreclosure as follows: • 2006: 0.6% • 2007: 0.9% • 2008: 1.7% • 2009: 2.6% • 2010: 3.7% • 2011: 4.0% • 2012: 4.0% • 2013: 3.5% • 2014: 2.5% Balances on home equity lines of credit (HELOC) were $521 billion at the end of second quarter 2014, a 2.6% drop from a year prior. Approximately 26% of

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refinancings are now ‘cash in’ deals, where borrowers increase their equity; less than a quarter are ‘cash out.’ For comparison, in 2008, 67% of borrowers who refinanced took cash out. According to the Census Bureau, the number of homeowners who owed more for their house than its value, or were “underwater,” has been as follows (percentage of all homeowners in parenthesis): • 2007: 2.5 million (5%) • 2009: 5.8 million (12%) • 2011: 6.8 million (14%) • 2013: 5.1 million (11%) According to The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac (www.freddiemac.com), homeowners are shortening the terms of their mortgages. Since 2011, over one-third of refinancers paid off a 30-year loan and switched to a 20- or 15-year loan.

3.3 Credit Card Debt According to the Federal Reserve, approximately 49% of households have credit card debt. Among those with credit card debt, the average was $15,593 per household in August 2014. Credit card debt at the end of third quarter 2014 was $849.4 billion, an increase from $820.9 billion a year prior. Credit card balances typically peak in December following the holiday shopping season. Year-end revolving credit balances have been as follows (source: Federal Reserve): • 2008: $1.005 trillion • 2009: $ 917 billion • 2010: $ 841 billion • 2011: $ 842 billion • 2012: $ 847 billion • 2013: $ 858 billion Many consumers have given up using credit cards entirely. According to the Federal Reserve, 30% of families had no credit cards in 2014.

3.4 Student Loans About two-thirds of bachelor’s degree recipients borrow money to attend college, either from the government or private lenders, according to the U.S. Department of Education (www.ed.gov). Outstanding educational debt has been as follows (source: Federal Reserve):

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• • • • • • •

2008: 2009: 2010: 2011: 2012: 2013: 3Q 2014:

$ 731 billion $ 832 billion $ 912 billion $1.01 trillion $1.13 trillion $1.22 trillion $1.31 trillion

At year-end 2013, 11.8% of student loan balances were 90 or more days delinquent. According to the Pew Research Center, 19% of U.S. households owe student debt, more than double the share two decades earlier and a rise from the 15% that owed such debt in 2007, just prior to the onset of the Great Recession. Forty percent (40%) of households headed by someone younger than age 35 owe such debt. Among households owing student debt, the average outstanding student loan balance is $26,682; 10% of student debtor households owe more than $61,894. _________________________________________________________________

“While the overall level of student debt may not measure up to that of mortgages, it is highly concentrated among a small slice of people – those in their 20s and 30s – who are the engines of a great deal of economic activity. One of the crucial reasons the housing market has not expanded enough to support robust economic growth is that young adults are not setting up their own households at anywhere near the historical norm. Might higher student loan debt burdens be an important reason?” The New York Times, 5/14/14 _________________________________________________________________

3.5 Medical Debt According to The Commonwealth Fund (www.commonwealthfund.org), 48 million people were paying off medical debt at year-end 2012 (most recent data available); an additional 27 million people reported problems paying their medical bills. A March 2014 study by FINRA Investor Education Foundation (www.usfinancialcapability.org) reported the percentages of adults with unpaid medical

CONSUMER BEHAVIOR 2015-2016

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debt as follows: • Millennials: • Gen Xers: • Baby Boomers: • Seniors:

31% 31% 22% 10%

Hospitals wrote off $24.5 billion, or 2.7% of revenue, in 2012 (most recent data available) as a result of consumer bad debt, according to the American Hospital Association (www.aha.org).

3.6 Debt in Collections According to Delinquent Debt In America, a July 2014 report by Urban Institute, 77 million Americans, or 35% of adults with a credit file, have a report of debt in collections. These adults owe an average of $5,178 (median $1,349). Debt in collections involves a non-mortgage bill – such as a credit card balance, medical or utility bill – that is more than 180 days past due and has been placed in collections. Such debts can remain on a credit file for as long as seven years. Among states, Nevada residents have the worst record – 47% of the state’s residents with a credit file have debt in collections. In 12 other states (11 of them in the South), the figure is more than 40%. At the other extreme, less than 20% of residents of Minnesota, North Dakota, and South Dakota have debt in collections. Among the 100 largest metropolitan areas, the percentage of residents with debt in collections ranges from a low of 20.1% in Minneapolis-St. Paul, Minnesota, to a high of 51.7% in McAllen, Texas. Other metros with a high percentage of residents having debt in collections are Las Vegas (49.2%), Lakeland, Florida (47.3%), Columbia, South Carolina (45.2%), and Jacksonville, Florida (45.0%).

3.7 Market Resources Delinquent Debt In America, Urban Institute, July 2014. (www.urban.org/publications/413191.html) Detailed Tables On Debt, Census Bureau. (www.census.gov/people/wealth/data/debttables.html) The Federal Reserve Bank Of New York reports on household credit, including mortgages. (www.newyorkfed.org/regional/householdcredit.html) Monthly short- and intermediate-term consumer credit data, Federal Reserve. (www.federalreserve.gov/releases/g19/current/default.htm) Survey of Consumer Finances, Federal Reserve. (www.federalreserve.gov/econresdata/scf/scfindex.htm)

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4 HOUSEHOLDS & HOUSING

4.1 Households The 2014 Current Population Survey, by the Census Bureau (www.census.gov), estimated there are 122.95 million households in the U.S. Distribution by race and ethnicity is as follows: • Non-Hispanic white: 68.0% • Black: 13.7% • Hispanic: 12.8% • Asian: 5.0%

• •

•

Distribution by type of household is as follows: Family households, married couple: Non-family households (a person living alone, unrelated people living together, or people in group settings): Family households, husband or wife only present:

48.3%

33.8% 17.9%

Household composition has undergone significant shifts in recent decades. Distributions since 1970 have been as follows: • • • • • •

Married couples with children: Married couples without children: Other family households: Men living alone: Women living alone: Other non-family households:

1970

1980

40.3% 30.3% 10.6% 5.6% 11.5% 1.7%

30.9% 29.9% 12.9% 8.6% 14.0% 3.6%

1990

2000

2010

26.3% 29.8% 14.8% 9.7% 14.9% 4.6%

24.1% 18.7% 16.0% 10.7% 14.8% 5.7%

20.9% 28.8% 17.4% 11.9% 14.8% 6.2%

According to the 2014 Current Population Survey, households grew an average of about 500,000 per year from 2007 through 2013. This is less than half the annual pace of 1.2 million averaged 2000 through 2007, and lower than that averaged in the 1990s, when Generation X matured to become heads of households. Between 2013 and 2014, the household count increased by 492,000, the fourth lowest increase in four decades. The change in number of households by age of householder is as follows: • Under age 25: 9,532 • 25-to-34: -8,994

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• • • •

35-to-44: 45-to-54: 55-to-64: 65 and older:

-288,231 -258,528 233,447 804,985

_________________________________________________________________

“The decline in households headed by people ages 35-to-54 is due to the fact that Generation X, which is moving into those age groups, is small. The increase in households headed by people ages 55 or older is due to the large Baby Boom generation moving into those age groups. The troubling number, and a sign of economic distress, is the decline in households headed by 25-to-34-year-olds, a group that should be expanding with the Millennial generation.” Memo Demo, 9/19/14 _________________________________________________________________

Growth in the number of households headed by 25-to-34-year-olds has been declining since the end of the Great Recession. The annual change in the number of these households has been as follows: • 2010-11: 315,000 • 2011-12: 274,000 • 2012-13: 171,000 • 2013-14: -8,994 The 25-to-34-year-old population is growing by more than half a million a year. But burdened by student debt, challenges in finding high-paying jobs, and rising rents, fewer in this age group can afford to live alone or head households.

4.2 Shared Households The lack of household growth is, in part, due to the rise in shared households. The Census Bureau defines shared households as those with a household member ages 18 or older who is not in school nor the head householder, spouse, or cohabiting partner.

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In 2014, there were 23.5 million shared households (19.1% of all households); 74 million adults (30.9% of all adults) lived in these households, according to the Census Bureau. This is a sharp increase from 2007, when there were 19.7 million shared households (17.0% of all households) housing 62 million adults (27.7% of all adults). In 1980, 12.1% of households were shared households. Among shared households, the majority are multigenerational households, with adult children living with a parent or grandparent, or an elderly parent living with their adult children. According to The Return of the Multi-Generational Family Household, a report by the Social & Demographic Trends Project at The Pew Research Center (www.pewsocialtrends.com), 16% of family households are multigenerational. Young adults ages 25-to-34 are a major component of the growth in the sharedliving population, especially since 2010. In 2014, 10.7 million adults in this age group were additional adults in a multigenerational household. This represents 25.2% of all 25-to-34 year olds. For comparison, 18.7% and 11.0% of 25-to-34 year olds lived at the parents’ home in 2007 and 1980, respectively. In 2014 alone, 1.8 million young adults moved back home. Stephanie Coontz, Ph.D., a family history professor at Evergreen State College, points out that there are a host of factors prompting families to combine expenses. Among them are higher housing costs and the struggling economy. Also, shared households are common among the country’s growing number of immigrant families. According to Amy Gover, a multigenerational issues expert at AARP (www.aarp.org), the most common multigenerational household is one with a grandparent as head of household with adult children that have moved in with their children, an arrangement usually spurred by the needs of one or both to combine resources and save money. The second most common arrangement is a grandparent moving in with an adult child’s family, usually for caregiving reasons. Roommates also account for an increasing number of shared households. Census 2010 reported 6.2 million households with non-relatives, including unmarried partners and roommates, an 8% increase from 2000.

4.3 Home Ownership vs. Renting Annual Gallup Polls (www.gallup.com) have reported the percentages of adults who own or rent their primary residence as follows: • • • • • • • • •

2001: 2002: 2003: 2004: 2005: 2006: 2007: 2008: 2009:

Own

Rent

67% 70% 69% 71% 74% 73% 73% 70% 70%

29% 28% 27% 26% 24% 22% 22% 26% 26%

CONSUMER BEHAVIOR 2015-2016

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• • • • •

2010: 2011: 2012: 2013: 2014:

65% 68% 62% 62% 64%

30% 28% 34% 34% 32%

According to the Census Bureau, the homeownership rate was 65.1% in 2013, a decline from 65.4% in 2012 and the all-time high of 69.0% in 2004. Ownership rates by age in 2013 were as follows (percentage point change from 2004 in parenthesis): • Under 25: 22.2% (-3.0%) • 25-to-29: 34.1% (-6.1%) • 30-to-34: 48.1% (-9.3%) • 35-to-39: 55.8% (-10.4%) • 40-to-44: 65.0% (-6.9%) • 45-to-54: 71.2% (-6.0%) • 55-to-64: 76.6% (-5.1%) • 65 and older: 80.8% (-0.3%) Ownership rates by region in 2013 were as follows (percentage point change from 2004 in parenthesis): Ages 30-34

• • • •

Northeast: Midwest: South: West:

42.1% (-9.8%) 57.9% (-7.1%) 49.8% (-9.0%) 40.6% (-11.5%)

Ages 35-39

53.9% (-8.0%) 63.4% (-10.8%) 56.6% (-11.3%) 48.7% (-10.1%)

_________________________________________________________________

“Typically, Americans buy their first home in their thirties. But first-time homebuyers are getting older, their age rising from early thirties to late thirties since the Great Recession. Among householders ages 30-to-34, only 48.1% owned their home in 2013, down from 57.4% in 2004, the year when the overall homeownership rate peaked.” Demo Memo, 4/4/14 _________________________________________________________________

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The 2014 American Housing Survey, by the Census Bureau, found a trend toward renting rather than owning. Among the 16.0 million Americans who moved between 2012 and 2013, 3.0 million owners become renters; 1.9 renters became owners. (The status of 11.1 million was unchanged.) The Census Bureau reported there were 40 million renters in the U.S. in 2013, an increase from 35 million in 2006. In 2013, the median age of renters was 40.2, a drop from 38.9 in 2006. Why Aren’t More Renters Becoming Homeowners?, a September 2014 report by the Federal Reserve Bank of New York (www.newyorkfed.org), explained that renters aren’t becoming homeowners like they once were primarily because they can’t afford to buy, not because they don’t want to own a home. Fifty-six percent (56%) of potential homebuyers say they don’t have enough money saved or they have too much debt to buy a home. _________________________________________________________________

“As the economy slowly improves and job growth picks up steam, the millions of 20- and 30-somethings who shared living quarters with friends or nestled in their parents’ basements to ride out the economic shock waves from the Great Recession are beginning to branch out on their own. But they are still largely shut out of the mortgage market.” The New York Times, 10/22/14 _________________________________________________________________

4.4 U.S. Housing Inventory 2013 Housing Vacancies and Home Ownership, by the Census Bureau, reported U.S. housing inventory as follows: • Total housing units: 132.78 million • Owner occupied: 74.93 million (56.4% of total) • Renter occupied: 39.58 million (29.8% of total) • Vacant: 18.27 million (13.8% of total)

4.5 New Homes And Apartments The Census Bureau reported that 569,000 single-family homes were built in

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2013. For comparison, 447,000 home builds were completed in 2011, an all-time low; there were 1.65 million homes completed in 2006. In 2013, 195,000 apartment units in new multifamily buildings were completed, according to the Census Bureau. For comparison, 138,000 apartments were completed in 2011, an all-time low; there were 325,000 apartments completed in 2006. The median size among new single-family homes in 2013 was 2,348 sq. ft. The median size among apartments completed in 2013 was 1,043 sq. ft.

4.6 Housing Affordability The traditional affordability standard is that housing cost should be no more than 30% of household income. According to State of the Nation’s Housing 2014, by the Joint Center for Housing Studies at Harvard University (JCHS, www.jchs.harvard.edu), the share of cost-burdened households (i.e., households exceeding the affordability standard) was 35.3% at year-end 2012, down from a record 37.2% in 2010. Twentyeight percent (28%) of renter households had even more severe burdens in 2012 and were paying more than half their incomes for housing. Among renters, the costburdened share reached 50% in 2010, a 12 percentag e point rise from 2000. Twentyseven percent (27%) of renters were severely cost-burdened in 2010, an 8 percentage point increase from a decade prior. _________________________________________________________________

“These levels were unimaginable just a decade ago, when the fact that the severely costburdened share was nearly 20% was already cause for serious concern.” State of the Nation’s Housing 2014 Joint Center for Housing Studies _________________________________________________________________

4.7 Vacation Homes According to data by the U.S. Census Bureau published in the Statistical Abstract of the United States 2014, there are 5.33 million vacation, seasonal, or recreational homes in the United States. This represents 4.0% of the total U.S. housing stock. The following states have the highest concentration of vacation homes: No. Vacation Homes

• • •

Maine: Vermont: New Hampshire:

Pct. of Total

125,000 50,000 69,000

17.2% 15.4% 11.2%

CONSUMER BEHAVIOR 2015-2016

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• • • •

Delaware: Alaska: Florida: Montana:

45,000 32,000 887,000 40,000

11.0% 10.2% 9.8% 8.2%

According to the 2014 Investment and Vacation Home Buyers Survey, by the National Association of Realtors (www.realtor.org), 700,000 vacation homes were sold in 2013, a 17% increase over 2012. The median vacation home price in 2013 was $168,700, a 12% increase.

4.8 Home Improvement New homeowners are the most “home-improvement happy.” According to JCHS, even though they represent only 13% of all homeowners, they typically account for 25% of home improvement spending. With home sales in decline, the home improvement market suffered during the economic downturn. Home improvement spending has been on the rise since 2011. The Home Improvement Research Institute (www.hiri.org) assesses home improvement spending as follows (change from previous year in parenthesis): • 2013: $289.7 billion (4.2%) • 2014: $308.5 billion (6.5%) • 2015: $330.2 billion (7.0%) • 2016: $346.8 billion (5.0%) • 2017: $363.4 billion (4.8%) • 2018: $377.6 billion (3.9%)

4.9 Smart Homes Residences with an Internet-connected controller for monitoring and control of HVAC, security, and other systems are dubbed smart homes or connected homes. According to 2014 State of the Smart Home, by icontrol (www.icontrol.com), there are 1.9 million smart homes in the U.S. By 2018, the number of smart homes is projected to increase to 9 million. According to Strategy Analytics (www.strategyanalytics.com), spending for smart home hardware and services was $17.9 billion in 2013; growth to $40 billion in 2019 is forecast. ABI Research (www.abireserch.com) assesses that 1.6 million connected home systems were installed in 2013 at a cost of $4.2 billion. This spending is projected to increase to $6.8 billion in 2016. While only 2% of U.S. households have some type of smart-home control, that figure is 18% among the 25% of broadband households that have a home-security system, according to Parks & Associates (www.parksassociates.com).

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4.10 Market Resources American Housing Survey, Census Bureau, 2014. (www.census.gov/housing/ahs/data/national.html) Current Population Survey, Census Bureau, 2014. (www.census.gov/cps/) Home Improvement Research Institute, 10117 Princess Palm Avenue, Suite 575, Tampa, FL 33610. (813) 627-6770. (www.hiri.org) Housing Vacancies and Homeownership, Census Bureau. (www.census.gov/housing/hvs/) Joint Center for Housing Studies at Harvard University, 1033 Massachusetts Avenue, Fifth Floor, Cambridge, MA 02138. (617) 495-7908. (www.jchs.harvard.edu) State of the Nation’s Housing, Joint Center for Housing Studies at Harvard University, 2014. (www.jchs.harvard.edu/research/state_nations_housing)

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5 COMMUNITIES

5.1 Where People Live Metropolitan and micropolitan statistical areas, or metro and micro areas, are geographic entities defined by the U.S. Office of Management and Budget (www.omb.gov) for use by federal statistical agencies in collecting, tabulating, and publishing federal statistics. A metro area contains a core urban area population of 50,000 or more. A micro area contains a core urban area population of at least 10,000 but less than 50,000. Census 2010 reported the population distribution by core statistical area as follows: • Metropolitan Statistical Area: 83.7% • Micropolitan Statistical Area: 10.0% • Outside core area: 6.3% According to Current Population Survey, 2014, by the U.S. Census Bureau (www.census.gov), households are distributed by type of community as follows: • Inside principal cities of Metropolitan Statistical Areas: 39.47 million (33% of total) • Outside principal cities of Metropolitan Statistical Areas: 59.79 million (50%) • Outside Metropolitan Statistical Areas: 19.42 million (16%) A population migration to metropolitan areas and suburbs from rural regions has been ongoing for several decades. The shift is shown in the General Social Survey, by the National Opinion Research Center at the University of Chicago (http://www3.norc.org/GSS+Website/), which reports the communities where adults were raised as follows: Metropolitan area • 18-to-34: 16% • 65 and older: 14% Suburb • 18-to-34: • 65 and older:

35% 21%

Small town • 18-to-34: • 65 and older:

32% 35%

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Rural area or a farm • 18-to-34: • 65 and older:

17% 30%

5.2 Most Desirable Places To Live A survey by the Pew Research Center’s Social & Demographic Trends Project (www.pewsocialtrends.org) found that 46% of U.S. adults would rather live in a different type of community from the one in which they are presently living. There was no consensus, however, as to what is the ideal place to live. Survey participants responded as follows about their ideal community: • Small town: 30% • Suburb: 25% • City: 23% • Rural area: 21% _________________________________________________________________

“Most city dwellers think the grass would be greener in a suburb, small town or rural area. But urbanites aren’t alone in feeling mismatched with their surroundings. More than four-in-ten residents of suburbs, small towns and rural areas also report they would prefer to live in a different type of community.” Social & Demographics Trends Project Pew Research Center _________________________________________________________________

•

• •

•

The following are other findings of the Pew study: By a ratio of more than three-to-one, Americans prefer living where the pace of life is slow. A similarly lopsided majority prefer a place where neighbors know each other well over one where neighbors generally are not acquainted. Over 60% of people prefer to live in a warmer climate. About seven-in-10 whites rate their current community as “excellent” or “very good”; only about half of Hispanics and four-in-10 blacks say the same. Rural and suburban residents rate their communities better than do residents of cities and small towns. People who live in a city – as well as people who wish to live in a city – are more open than others to the idea of living with neighbors who are of different races.

CONSUMER BEHAVIOR 2015-2016

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•

They are also more open to living among immigrants. When it comes to community involvement, there is no difference among those who live in cities, suburbs, small towns, or rural areas. About half of the residents in each place say they are involved in their communities.

5.3 Metropolitan Communities According to the Census Bureau, the population of the nation’s 743 largest cities (incorporated places with populations of 50,000 or more in 2013) increased 3.3% between 2010 and 2013, while the remainder of the United States grew by 1.8%. The 2010-2013 population change was as follows: • Metropolitan areas with 1 million or more people: 3.0% • Metropolitan areas of 250,000 to 1 million people: 2.2% • Metropolitan areas with less than 250,000 people: 1.5% • Counties adjacent to a metro with urban population of 20,000 or more: no change • Counties not adjacent to metro with urban population of 20,000 or more: 1.1% • Counties adjacent to metro with urban population of 2,500-19,999: -0.5% • Counties not adjacent to metro with urban population of 2,500-19,999: -0.3% • Counties adjacent to metro with urban population less than 2,500: -1.1% • Counties not adjacent to metro, urban population less than 2,500: -0.6% _________________________________________________________________

“One reason for the strong growth of the nation’s urban counties is domestic migration: Americans are voting with their feet for city life. The rate of domestic migration in the 2010-2013 time period was positive only for the most urban counties. For less urban and rural counties, the domestic migration rate was negative, meaning more Americans moved out than moved in.” Demo Memo, 3/28/14 _________________________________________________________________

5.4 Rural Communities According to Rural America at a Glance, 2014 edition, by the USDA Economic Research Service (www.ers.usda.gov), the number of adults in non-metropolitan areas declined in 2013 for the first time ever. The average annual change in non-metro

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population, ages 16 and older, has been as follows: • 2008: 0.49% • 2009: 0.36% • 2010: 0.37% • 2011: 0.19% • 2012: 0.07% • 2013: -0.07% _________________________________________________________________

“This loss is the result of two trends: a decline in the rate of natural population increase in nonmetro areas (births minus deaths) and a decline in net migration (people moving in minus people moving out), which has been negative since 2010. Why are people moving out of non-metro areas? Probably to find a job. Non-metro employment growth slowed in 2011 and fell to zero or slightly below thereafter.” Demo Memo, 10/15/14 _________________________________________________________________

5.5 Satisfaction With Communities A 2013 study by the Urban Land Institute (www.uli.org) assessed Americans’ satisfaction with their communities, housing, and transportation and what they want for themselves and their families. The study was based on a survey of homeowners by Belden Russonello Strategists (www.brspoll.com). The following is a summary of the Urban Land Institute assessment: Quality of Life • Ninety percent (90%) of American adults are satisfied with their community’s quality of life, and few worry that these communities are in danger of deteriorating. Groups who are least satisfied with where they currently live, such as Latinos and big-city residents, tend to be the ones who are the most optimistic and who think their communities are on the upswing. Community • About a third of the American public live in what they consider small towns, a third in middle-sized or big cities, 21% in suburbs, and 15% in rural areas. If given a choice, a quarter say they would like to be living in rural communities.

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Satisfaction With Residence • Be it single-family houses, apartments, or other structures, most adults like where they live. Nine in 10 adults report satisfaction with their current dwelling, and four in five are happy with the range of housing choices in their communities. Even among pockets of less contentment with housing, for example among Millennial adults (ages 18-to-34), Latinos, and big-city residents, dissatisfaction does not rise to high levels. Home Ownership • Seven in 10 believe that buying a home is a good investment for them, even in the aftermath of the housing and mortgage difficulties of the last few years. Two-thirds of survey respondents said they own their home and seven in 10 renters are hopeful that within five years they will join the ranks of home ownership. Single-Family Homes • Two-thirds of the survey participants say they live in detached single-family homes and the remainder live in apartments, duplexes, row houses, and manufactured homes. Among those who believe they will move in the next five years, the appeal of the single-family home is strong, with two-thirds expecting to move into or remain in a detached single-family home. Mixed-Use Development • Two groups have a high interest in mixed-use development: - Young people and college graduates who are most enthusiastic about living in centers with shops and offices nearby. - Lower-income groups who would like to live in areas with more variety in housing type and economic diversity. • Both of these groups share an interest in living close to where they work or go to school. They prefer to live in areas with public transit and would choose shorter commutes with smaller homes over longer commutes and bigger houses. The Appeal of Compact Development • While much of the public expresses a desire for single-family homes and rural and small town life, there are competing pressures and needs that recommend compact development. Proximity to jobs, schools, and medical services, as well as a community’s walkability, are powerful draws for many Americans. Commuting and Driving • Most Americans travel by car, truck, or motorcycle nearly every day, and when the two-thirds who commute regularly go to their jobs or school, 85% travel in a car. • Travel times to work or school divide in relative thirds: fewer than fifteen minutes, fifteen minutes to half an hour, and over half an hour. Rural and suburban residents and African Americans have the longest commutes; about half need thirty minutes or more to travel to their employment or schools. CONSUMER BEHAVIOR 2015-2016

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Public Transportation • Overall, one in 10 commuters use public transit to get to school or work. Reliance on buses and trains is highest among people of color and, naturally, residents of urban areas. The public that is served by buses and trains say the quality of their public transit systems is satisfactory; however, half of those who do not have access to trains and buses are discontent with the lack of public transportation. Walkability • Americans place high priority on having communities that are walkable, and most are already at least somewhat content with this aspect of their own communities: 70% say their local sidewalks and crosswalks are satisfactory. One in five walk to a destination most days, and almost one-half do so at least once a week. Job Market Dissatisfaction • One area of some discontent with community life is the number and quality of job and career opportunities. More than two in five say this situation in their community is unsatisfactory. This is a problem most acutely felt by people of color and rural residents and, to a smaller degree, Millennials and Baby Boomers. Migration • Almost one-third of survey respondents said they moved to a different home in the last five years. The highest percentages of those who moved were young people, residents of large cities, and lower-income households. Most of those who moved did so because they sought larger homes. Two in five households anticipate moving within the next five years. Among Baby Boomers (ages 48-to-66), Caucasians, and Midwesterners anticipating a move, the majority say they would prefer moving to a rural location. Most Generation Yers, people of color, Westerners, and singles expressed an interest in urban living.

5.6 Generational Preferences As Americans age and their incomes rise and then fall, their housing and community preferences vary. Millennials (ages 18-to-34), half of whom are people of color, show the strongest preference for mixed-use communities. Most currently have an urban, apartment-living lifestyle. At the same time, Millennials are among the least satisfied with where they live and the most likely to be anticipating moving. They want walkable communities and use public transit more than others, although they are still very car dependent. Many Generation Xers are in the child-rearing life stage and prefer single-family home ownership. While many members of Generation X are anticipating moving, they are not likely to be looking for mixed-use communities, nor to push for mass transit. This group has the largest percentages of high-income members and if they move they will be seeking to buy single-family homes.

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Baby Boomers, the middle ground on housing and transportation preferences and behaviors, live in a wide range of sizes of cities and towns. They are not as likely to move soon, but when they do Boomers will seek out smaller homes and shorter commutes. This cohort, as it eases into retirement, would like to be close to parks and apart from neighbors. Seniors are the most likely to stay in their current homes. These older adults, who are mainly out of the workforce, are especially likely to want to be in walkable neighborhoods and close to health services, family and friends, and shopping and entertainment.

5.7 Important Community Attributes When asked what attributes they considered important in a community, survey responses were as follows (percentage of respondents; source: Urban Land Institute): • Neighborhood safety: 92% • Quality of public schools: 79% • Space between neighbors: 72% • Walk or short drive to work or school: 71% • Walk or short drive to doctors and hospitals: 71% • Walkability: sidewalks/crosswalks: 70% • Walk or short drive to shopping and entertainment: 66% • Walk or short drive to parks or recreational areas: 64% • Walk or short drive to family or friends: 63% • Convenient public transportation: 52%

5.8 Market Resources Better Cities & Towns, P.O. Box 6515, Ithaca, NY 14851. (607) 275-3087. (www.bettercities.net) General Social Survey, National Opinion Research Center at the University of Chicago, 1155 E. 60 th Street, Chicago, IL 60637. (773) 256-6288. (http://www3.norc.org/GSS+Website/) Pew Research Social & Demographic Trends, 1615 L Street NW, Suite 700, Washington, DC 20036. (202) 419-4300. (www.pewsocialtrends.org) The Demand Institute, 845 Third Avenue, New York, NY 10022. (212) 339-0220. (www.demandinstitute.org) Urban Land Institute, 1025 Thomas Jefferson Street NW, Suite 500 West, Washington, DC 20007. (202) 624-7000. (www.uli.org)

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6 PERSONAL LIFE

6.1 Satisfaction With Personal Life Gallup Polls (www.gallup.com) periodically ask adults how satisfied they are with the way things are going in their personal life. Responses have been as follows: Very Satisfied

• • • • •

2002: 2005: 2008: 2011: 2013:

Somewhat Satisfied Somewhat Dissatisfied

56% 57% 47% 46% 50%

29% 28% 33% 32% 29%

9% 8% 10% 12% 13%

Very Dissatisfied

5% 5% 8% 8% 7%

6.2 Personal Financial Situation When asked by Gallup how they would rate their financial situation, responses were as follows: • • • • • • • • • • • • •

2002: 2003: 2004: 2005: 2006: 2007: 2008: 2009: 2010: 2011: 2012: 2013: 2014:

Excellent

Good

Fair

Poor

9% 5% 9% 8% 10% 10% 7% 6% 8% 5% 7% 7% 9%

43% 45% 42% 44% 41% 45% 38% 36% 33% 37% 34% 38% 39%

35% 38% 36% 36% 37% 31% 37% 39% 40% 40% 41% 40% 36%

13% 12% 13% 12% 12% 14% 17% 19% 19% 18% 18% 14% 16%

When asked to compare their current financial situation with that of one year prior, responses were as follows: • • •

2002: 2003: 2005:

Better

Worse

Same

32% 36% 42%

45% 39% 40%

23% 25% 17%

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• • • • • • •

2007: 2008: 2009: 2011: 2012: 2013: 2014:

39% 26% 23% 28% 37% 40% 35%

39% 56% 54% 45% 42% 39% 42%

22% 18% 22% 26% 20% 20% 22%

(Note: Surveys were not conducted in 2004 and 2010.)

6.3 Economic Wellbeing An August 2014 survey by the Federal Reserve (www.federalreserve.gov) reported financial well-being of U.S. households as follows: • Thirty-four percent (34%) of households say they are worse off financially than they were five years ago. • Forty-five percent (45%) say they are not saving any portion of their income. • Fifty-eight percent (58%) do not have a rainy day fund that could cover expenses for three months. • Forty-five percent (45%) of renters say they rent because they can’t afford a down payment. • Twenty-four percent (24%) of households have education debt, owing a median of $15,000. • Thirty-seven percent (37%) of those with education debt say the cost outweighs the benefits. • Forty-four percent (44%) of households bought lottery tickets in the past year; only 33% own stock. • Fifty-four percent (54%) would have to go into debt or be unable to pay an unexpected $400 expense. • Twenty-eight percent (28%) of householders ages 60-plus say their retirement plan is to keep working.

6.4 Happiness Since 2008, Harris Interactive (www.harrisinteractive.com) has conducted a happiness poll. The poll ascertains a Happiness Index based on survey responses relating to various aspects of their lives. The median Happiness Index among all adults has been as follows: • 2008: 35 • 2009: 35 • 2010: 33 • 2011: 33 • 2013: 33 (Note: A survey was not conducted in 2012.)

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By demographic, the Happiness Index in 2013 was as follows: Gender • Female: 35 • Male: 32 Age • 18-to-24: • 25-to-29: • 30-to-39: • 40-to-49: • 50-to-50: • 65 and older:

31 30 28 30 36 41

Race/Ethnicity • African American: • Caucasian: • Hispanic:

36 34 28

Income • Less than $35,000: • $35,000 to $49,999: • $50,000 to $74,999: • $75,000 to $99,999: • $100,000 or more:

29 32 35 35 38

Education: • High school or less: • Some college: • College graduate: • Post graduate:

34 32 32 38

According to a study by economist Angus Deaton, Ph.D., and Nobel Laureate Daniel Kahneman, Ph.D., at the Woodrow Wilson School of Public Affairs, Princeton University (http://wws.princeton.edu), income increases happiness only for those with annual incomes below $75,000. The lower a person’s annual income falls below that benchmark, the unhappier he or she feels. But no matter how much above $75,000 people earn, they don’t report any greater degree of happiness. Researchers at Brookings Institution (www.brookings.org) have found a correlation between age and happiness. Happiness in most adults tends to diminish until age 50 or 55, then increases with age.

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_________________________________________________________________

“The true causes of midlife dissatisfaction are not what you probably think. A growing body of research shows that they lie deep within our biology and that we reliably grow happier, regardless of circumstances, after our 40s have passed. The peak of emotional life may not occur until well into the seventh decade.” Jonathan Rauch, Senior Fellow Brookings Institution The Atlantic, 12/14 _________________________________________________________________

6.5 Stress The American Psychological Association (www.apa.org) has conducting the Stress In America survey since 2007. Adults participating in the survey have reported their stress on a scale of 1-to-10 (1 is little or no stress; 10 is a great deal of stress) as follows: • 2007: 6.2 • 2008: 5.9 • 2009: 5.4 • 2010: 5.4 • 2011: 5.2 • 2012: 4.9 • 2013: 5.1 The following are findings presented in Stress In America 2013, published in February 2014: • Women report a 5.5 level of stress; 24% of women say their stress is extreme (i.e., on a level of 8 or higher). • Men report a 4.8 level of stress; 24% of men say their stress is extreme. • Forty-two percent (42%) of adults report that their stress level has increased, and 36% say their stress level has stayed the same over the past five years. • Thirty-six percent (36%) of adults say their stress has increased, and 48% say it has stayed the same in the past year. • The most commonly reported sources of stress are money (71%), work (69%), and the economy (59%). • By generation, adults report their stress levels as follows:

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•

• •

- Millennials: 5.7 - Gen Xers: 5.7 - Baby Boomers: 4.9 - Seniors: 3.5 By generation, adults who say that their stress levels have increased in the past year are as follows: - Millennials: 45% - Gen Xers: 36% - Baby Boomers: 33% - Seniors: 21% Teens report that during the school year they have an average stress level of 5.8 and a level of 4.6 during the summer. By region, adults report their stress levels as follows: - Midwest: 4.9 - East: 5.0 - South: 5.3 - West: 5.4

6.6 Personal Health A November 2013 poll conducted by Gallup asked adults how they would describe their physical health. Responses were as follows: • Excellent: 32% • Good: 49% • Fair: 14% • Poor: 6% When asked how they would describe their mental health or emotional wellbeing, responses were as follows: • Excellent: 48% • Good: 41% • Fair: 9% • Poor: 2% The National Adult Tobacco Survey, published in June 2014 by the Centers for Disease Control and Prevention (CDC, www.cdc.gov), reported that 21.3% of adults use tobacco.

6.7 Weight Control and Dieting According to the CDC, 27% of adults are obese and an additional 36% are overweight. Being overweight increases the risk of diabetes, heart disease, cancer, arthritis, and other health problems.

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Rand Corp. (www.rand.org) assessed that 6.6% of U.S. adults are severely obese, or more than 100 pounds above a healthy weight for their body type. Healthcare costs for those severely obese are more than double those of the general adult population. A November 2013 poll conducted by Gallup asked adults how they would describe their personal weight situation. Responses were as follows: • About right: 57% • Overweight: 36% • Underweight: 6% According to Marketdata Enterprises (www.marketdataenterprises.com), consumers spend $62 billion each year on weight loss and weight control, an increase from $55 billion in 2006 and $38 billion in 2001. Spending includes health club memberships, diet programs, diet drinks, and prepared foods. Annual spending for diet programs such as Jenny Craig, Nutrisystem, and Weight Watchers is $3.6 billion.

6.8 Exercise And Fitness According to the CDC, 49% of adults engage in 30 minutes or more of moderate physical activity five or more days per week or vigorous physical activity for 20 minutes or more three or more days per week. Americans who participate in sports, recreation, or exercise spend an average of 1.7 hours daily doing so – one-third of their leisure time is spent on these activities, according to the Bureau of Labor Statistics (www.bls.gov). But the vast majority of people are not so engaged in physical activities. Americans, on average, spend 18 minutes per day participating in sports, exercise, or recreation. On average, teens are active 40 minutes a day; people ages 35 and above spend 15 minutes or less being active. Survey of The American Consumer, by GfK MRI (www.gfkmri.com), reported in 2013 that 41% of adults exercise regularly. This percentage was the same as in the 2002 GfK MRI survey, however the adults who exercise at health and fitness clubs increased to 32% from 23% during that timeframe. There are approximately 30,000 health and fitness clubs in the U.S., according to the International Health, Racquet & Sportsclub Association (www.ihrsa.org). Combined, they have approximately 50.2 million members. First Research (www.firstresearch.com) estimates annual consumer spending for memberships and services at $22 billion. A recent fitness trend has been the rise in popularity of cross-training gyms. According to the Sports and Fitness Industries Association (SFIA, www.sfia.org), 6.9 million people practiced boot-camp-style cross-training in 2013; 2.4 million were core participants, participating 50 or more times.

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6.9 Eating According to the Consumer Expenditure Survey, by the Bureau of Labor Statistics, American households spend an average of $6,599 annually on food. The restaurant share of the food dollar is approximately 40.6%. _________________________________________________________________

“Americans spend more at restaurants than they think they do. We know this because the Consumer Expenditure Survey asks respondents how much they usually spend at restaurants per week, and it also asks them to keep a daily diary of their expenditures. The results are not the same. The more precise diary method consistently shows restaurant spending to be 16% to 22% greater than the guesstimate. The opposite happens with grocery shopping. When asked how much they usually spend on groceries per week, households over-report their spending by about 21% in comparison with diary data on grocery purchases.” Demo Memo, 11/5/14 _________________________________________________________________ Eating Patterns In America, 29th Edition, published in November 2014 by The NPD Group (www.npd.com), reported that households are eating at home more, but they are purchasing more prepared meals and are cooking less. Households ate eight of 10 meals at home in 2014.

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_________________________________________________________________

“A decline in restaurant usage and an increase in meals from home is one of the single biggest changes in eating patterns in Americans in the last five years. The number of meals Americans bought at restaurants dropped significantly during the recession and isn’t recovering. But that does not mean that we are cooking more meals in our home. We are eating more meals in our homes, but not cooking more dishes.” Harry Balzer, Vice President The NPD Group, 11/10/14 _________________________________________________________________

According to The NPD Group, Americans purchased 191 restaurant or foodservice meals in 2014, a decline from 195 in 2013 and 206 in 2009. According to a February 2014 report by the USDA Economic Research Service (http://ers.usda.gov/), 80.7% of adults get at least one prepared meal each week from a restaurant, grocery store deli, or vendor. The number of prepared meals are as follows: • None: 19.3% • 1 or 2: 24.1% • 3 or 4: 21.6% • 5 to 7: 15.4% • 8 or more: 9.5% Age is one of the most important determinants in how often people eat out. The percentages by age of those who do not eat out at all (or rarely do so) and those who eat out eight or more times per week are as follows: None/Rarely

• • • • •

20-to-39: 40-to-54: 55-to-64: 65 and older: All adults:

12.1% 20.0% 22.6% 28.2% 19.3%

Eight or More

16.0% 10.0% 9.1% 4.4% 9.5%

According to a November 2013 survey by Harris Interactive, 86% of families with children have a family dinner at home at least once a week; 87% of families without children do so. The number of evenings families eat dinner at home per week is as

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follows: • Once: • 2 or 3: • 4 to 6: • Every night:

7% 21% 26% 33%

The percentages of families by age who have dinner together at least four times a week are as follows: • 18-to-36: 52% • 37-to-48: 50% • 49-to-67: 62% • 68 and older: 81% When asked in the National Health and Nutrition Examination Survey, by the U.S. Department of Agriculture (www.usda.gov), how healthy is their overall diet, responses were as follows: • Excellent: 9.4% • Very good: 21.7% • Good: 43.0% • Fair: 21.5% • Poor: 4.3% A survey by The NPD Group found that while over 50% of adults say they eat healthful meals always or most of the time at home, only 25% say they eat healthy foods when they go out to eat. In an August 2014 Gallup Poll, 45% of adults said they actively try to include organic food in their diet. The figure was highest in the West (54%) and in metropolitan areas (50%). By age, the percentages who said they try to eat organic are as follows: • 18-to-29: 53% • 30-to-49: 48% • 50-to-64: 45% • 65 and older: 33% Gallup polls have found the number of people who identify themselves as vegetarian has remained steady at about 5% since 1999.

6.10 Alcohol Consumption A July 2014 Gallup Poll found that 64% of adults drink alcoholic beverages. Among those who drink alcoholic beverages, weekly consumption is as follows: • Less than one drink: 37% • 1-to-7 drinks: 48% • 8 or more drinks: 13%

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Among those who consume alcoholic beverages, the following are the beverages most frequently consumed: • Beer: 41% • Wine: 31% • Spirits: 23% Harris Interactive reports consumption of alcoholic beverages by adults as follows: At least once per Week

At least once a month

Less than once a month

Never

3% 7%

21% 38%

21% 18%

33% 24%

24% 20%

3% 3% 5% 11%

33% 30% 29% 26%

24% 20% 17% 18%

21% 32% 31% 29%

23% 18% 22% 27%

5%

29%

20%

29%

22%

Daily

Gender • Female: • Male: Age • 21-to-34: • 35-to-46: • 47-to-65: • 66 and older: All

6.11 Travel Americans took 1.57 person-trips for leisure in 2013, according to the U.S. Travel Association (USTA, www.ustravel.org), spending $497.0 billion, or 67% of total U.S. travel spending. The average household spends about $1,500 on travel each year, according to the Consumer Expenditure Survey. Transportation for leisure travel is as follows (source: USTA): • Automobile: 70% • Van or small truck: 18% • Airplane: 6%

• • • •

The reported purposes of Personal leisure: Visit friends or relatives: Getaway weekend: General vacation:

leisure trips are as follows (source: USTA): 39% 36% 15% 10%

According to the USTA, party composition for leisure travel is as follows (source: USTA): • Solo travelers: 32% • Adults only: 39% • Adults with kids: 29%

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Leisure travel is nearly evenly split between day trips and overnight trips, at 51% and 49%, respectively. Approximately 40% of leisure trips include a stay at a hotel, motel, or resort. Twenty-seven percent (27%) of adults take a ‘last-minute’ trip at least once a year.

6.12 Charitable Giving Based on data from over 4,000 nonprofit organizations, Blackbaud Inc. (www.blackbaud.com) reported charitable donations were $12.5 billion in 2013, the first increase in giving since 2008. According to an August 2014 survey by Harris Interactive, 25% of adults feel that people have a personal responsibility to make the world a better place by being actively involved with various issues and causes. An additional 17% f eel people should generally take part in things such as voluntary service, donating to charities, or getting involved in community activities because it is the right thing to do, and 48% feel people can get involved with different issues and causes if they want to, but shouldn’t necessarily feel obligated to do so. Ninety-one percent (91%) of adults have made contributions within the past three years. By age, those that have done so are as follows: • 18-to-36: 86% • 37-to-48: 92% • 49-to-67: 93% • 68 and older: 98%

• • • • • •

Types of contributions were as follows: Used clothing: 73% Money: 66% Food: 53% Other used items: 45% Time/labor: 41% Blood: 18%

When asked what cause they consider should be the biggest priority for charities to focus their resources, responses in the Harris Poll were as follows: • Youth/families: 16% • Education: 15% • Human rights: 12% • Medical research: 11% • Disaster relief: 10% • Environmental: 7% • Global health: 7% • Animals: 4% • Other: 17% CONSUMER BEHAVIOR 2015-2016

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6.13 Volunteering Americans give their time to beautify neighborhoods, restore homes after disasters, mentor students, assist cultural organizations, and much more. According to the Bureau of Labor Statistics (www.bls.gov), 61 million Americans, or 26% of those over the age of 16, volunteer at least once each year through or for an organization, volunteering a median of 52 hours. Among women, 29% engage in volunteer activities; 23% of men do so. The percentages by age who do volunteer work are as follows: • 16-to-24: 21% • 25-to-34: 23% • 35-to-44: 31% • 45-to-54: 30% • 55-to-64: 28% • 65 and older: 24% The following are the most common activities, ranked by the percentage of adults engaged in various types of volunteer work (source: Bureau of Labor Statistics): • Fundraising: 11% • Tutoring/teaching: 10% • Collecting/preparing/distributing/serving food: 9% • General labor/supplying transportation: 9% • Providing professional/management assistance: 8% • Coaching/refereeing sports teams: 6% According to the Corporation for National and Community Service (CNCS, www.nationalservice.gov), volunteers contribute about 8.2 billion hours a year. While the perception may be that volunteers are primarily adults who are active in their communities or retirees with ample available time, many young adults also give their time. According to the CNCS, approximately 3.3 million college students, or 30% of all students, volunteer each year. Tutoring and mentoring are the most common activities.

6.14 Market Resources Corporation for National and Community Service, 1201 New York Avenue NW, Washington, DC 20525. (202) 606-5000. (www.nationalservice.gov) Harris Interactive, a Nielsen Company, 60 Corporate Woods, Rochester, NY 14623. (585) 272-8400. (www.harrisinteractive.com) Stress In American, American Psychological Association. (www.apa.org/news/press/releases/stress/)

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The Gallup Organization, 901 F Street NW, Washington, DC 20004. (202) 715-3030. (www.gallup.com) The NPD Group, 900 West Shore Road, Port Washington, NY 11050. (516) 625-0700. (www.npd.com)

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PART II: SPENDING

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7 CONSUMER SPENDING

7.1 Consumer Contribution to the GDP According to the Bureau of Economic Analysis (www.bea.gov), real gross domestic product (GDP) – the output of goods and services produced by labor and property located in the United States – was $16.77 trillion in 2013. Consumer spending (i.e., personal consumption expenditures) was $11.65 trillion, or 69.5% of GDP.

7.2 Spending Assessment According to the Consumer Expenditure Survey, published by the Bureau of Labor Statistics (BLS, www.bls.gov), there were 125.67 million consumer units (which are similar to households) in 2013, with an average income before taxes of $63,784, a 2.8% decrease from the year prior. There were 2.5 persons per consumer unit, on average, with 1.3 income earners. Sixty-four percent (64%) were homeowners. Average spending per consumer unit was $51,100 in 2012, a 0.7% decrease from the previous year. After adjusting for inflation, the decrease was 2.1%. Spending was distributed as follows (change from previous year in parenthesis): • Housing: $17,148 (1.5%) • Transportation: $ 9,004 (0.1%) • Food: $ 6,602 (no change) - At home: $ 3,977 (1.4%) - Away from home: $ 2,625 (-2.0%) • Personal insurance and pensions: $ 5,528 (-1.1%) • Healthcare: $ 3,631 (2.1%) • Entertainment: $ 2,482 (-4.7%) • Cash contributions: $ 1,834 (-4.1%) • Apparel and services: $ 1,604 (-7.6%) • All other expenditures: $ 3,267 (-8.2%) The BLS provides regional consumer spending surveys for the following metropolitan areas: Atlanta, Baltimore, Boston, Chicago, Cleveland, Dallas-Fort Worth, Detroit, Houston, Los Angeles, Miami, Minneapolis, New York, Phoenix, Philadelphia, San Diego, San Francisco, Seattle, and W ashington, D.C., available online at www.bls.gov/cex/csxregreleases.htm.

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7.3 Spending Trends According to the Consumer Expenditure Survey, average annual household spending and inflation-adjusted change from the prior year have been as follows: • 2006: $55,926 (+1.0%) • 2007: $55,770 (-0.3%) • 2008: $54,626 (-2.1%) • 2009: $53,280 (-2.5%) • 2010: $51,397 (-3.5%) • 2011: $51,477 (+0.2%) • 2012: $52,196 (+1.4%) • 2013: $51,100 (-2.1%) _________________________________________________________________

“Average household spending peaked in 2006, just prior to the Great Recession, and has yet to recover. In 2013, the average household spent just $51,100 ... this is 8.6% less than it spent in 2006, after adjusting for inflation. The 20122013 spending decline of 2.1% is equal to the decline that occurred between 2007 and 2008 – in the midst of the Great Recession.” Demo Memo, 9/10/14 _________________________________________________________________

Average household spending by region in 2013 and inflation-adjusted change since 2006 are as follows: • Northeast: $57,027 (0.4%) • West: $55,460 (-16.5%) • Midwest: $50,527 (-3.1%) • South: $45,956 (-10.6%)

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_________________________________________________________________

“Households in the Northeast are now the biggest spenders. At the other extreme, households in the South spend the least and are losing ground. In dollar terms, the household spending gap between the Northeast and South has more than doubled, rising from $5,388 in 2006 to $11,071 in 2013.” Demo Memo, 9/15/14 _________________________________________________________________

7.4 Consumer Price Index The Consumer Price Index (CPI) is a measure of the average change in prices over time of goods and services purchased by households. The CPI assessment was initiated by the Census Bureau in 1977. The CPI rose 1.5% in 2013 after a 1.7% increase in 2012. This is lower than the 2.4% average annual increase over the last 10 years. This is the first time the CPI has gone up less than 2.0% for consecutive years since 1997-1998. The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.5% in 2013 to an index level of 233.049 (1982-84=100). The overall CPI increased 1.7% for the 12-month period ending October 2014. Changes for select items were as follows: • Apparel: 0.7% • Energy: -1.6% - Gasoline (all types): -5.0% - Fuel oil: -6.5% - Electricity: 3.1% - Utility (piped) gas service: 3.4% • Food: 3.1% - Food at home: 3.3% - Food away from home: 2.8% • Medical care services: 1.9% • Medical care commodities: 2.6% • Shelter: 3.0% • Transportation services: 1.8% • Vehicles, new: 0.6% • Vehicles, used: -1.7%

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The BLS reports changes in the CPI on a monthly basis (www.bls.gov/cpi).

7.5 Daily Spending The Gallup Organization (www.gallup.com) surveys consumers bi-monthly about their daily spending (excluding housing and vehicle purchases). Self-reported daily spending has been as follows: • October 2008: $91 • October 2009: $66 • October 2010: $83 • October 2011: $70 • October 2012: $72 • October 2013: $88 • October 2014: $89 Average daily spending among upper-income Americans – those earning $90,000 or more annually – was $152 in October 2014. Daily spending among those with lower incomes was $76.

7.6 Market Resources Bureau of Economic Analysis, 1441 L Street NW, Washington, DC 20230. (202) 606-9900. (www.bea.gov) Consumer Expenditures, Bureau of Labor Statistics. (www.bls.gov/news.release/cesan.nr0.htm) Consumer Price Index Summary, Bureau of Labor Statistics (www.bls.gov/cpi) Spending, Gallup. (www.gallup.com/topics/spending.aspx)

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8 RETAIL SPENDING

8.1 The U.S. Retail Sector The U.S. retail industry encompasses more than 1.6 million retail establishments and employs more than 24 million people (about 1 in 5 American workers), according to the National Retail Federation (NRF, www.nrf.com).

8.2 GAFO Spending According to the Census Bureau (www.census.gov) of the U.S. Department of Commerce, total U.S. retail sales were $5.27 trillion in 2014, a 4.0% gain from 2013. Sales at GAFO (general merchandise, apparel, furnishings, and other) stores were $1.25 trillion in 2014, a 1.8% gain from 2013. GAFO sales were distributed by month in 2014 as follows: • January: $ 87.0 billion • February: $ 90.0 billion • March: $100.3 billion • April: $ 97.9 billion • May: $104.5 billion • June: $ 98.3 billion • July: $100.2 billion • August: $108.3 billion • September: $ 96.6 billion • October: $102.1 billion • November: $116.6 billion • December: $148.7 billion Retail sales in 2014 for stores in the GAFO categories were as follows (change from previous year in parenthesis): • General merchandise stores, including leased departments (NAICS 452): $663.1 billion (1.7%) - Superstores and warehouse clubs (NAICS 45291): $443.3 billion (5.1%) - Discount department stores, including leased departments (NAICS 452112): $110.6 billion (-1.7%) - Conventional and national chain department stores, including leased departments (NAICS 452111): $ 58.2 billion (-1.0%) - Variety stores and miscellaneous (NAICS 45299): $ 62.0 billion (4.6%)

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•

Apparel and accessories stores (NAICS 448): - Family clothing (NAICS 44814): - Women’s ready-to-wear (NAICS 44812): - Jewelry stores (NAICS 44831): - Shoe stores (NAICS 4482): - Men’s and boy’s clothing (NAICS 44811):

$253.7 billion (2.0%) $ 99.4 billion (1.8%) $ 42.8 billion (5.3%) $ 33.6 billion (1.1%) $ 30.9 billion (3.2%) $ 9.0 billion (1.1%)

•

Sporting goods, hobby, book, and music stores (NAICS 451): - Sporting goods stores (NAICS 45111): - Book stores (NAICS 451211): - Hobby, toy, and game stores (NAICS 45112):

$ $ $ $

•

Furniture and home furnishings (NAICS 442):

$101.1 billion (3.0%)

•

Electronics and appliance stores (NAICS 443):

$107.3 billion (2.9%)

•

Office supplies and stationary stores (NAICS 45321):

$ 17.1 billion (-5.6%)

•

Gift, novelty, and souvenir stores (NAICS 45322):

$ 20.5 billion (6.7%)

•

Used merchandise stores (NAICS 4533):

$ 15.2 billion (4.2%)

•

Retail sales in non-GAFO retail categories in 2014 were as follows: Motor vehicles and parts stores (NAICS 441): $1.057 trillion (8.1%)

•

87.7 billion (-0.4%) 43.2 billion (-2.1%) 11.4 billion (-4.3%) 20.2 billion (5.4%)

Food and beverage stores, not including restaurants (NAICS 445):

$ 668.7 billion (3.0%)

•

Restaurants and drinking places (NAICS 722):

$ 571.2 billion (5.8%)

•

Building materials, home improvement and gardening equipment, and supplies dealers (NAICS 444):

$ 328.5 billion (5.2%)

•

Gasoline stations (NAICS 447):

$ 533.4 billion (-2.8%)

•

Health and personal care stores, including pharmacies and drug stores (NAICS 446):

$ 298.5 billion (6.0%)

Non-store retailers (NAICS 454):

$ 480.7 billion (7.0%)

•

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8.3 E-Commerce According to the U.S. Department of Commerce, e-commerce sales in the U.S. have been as follows: • • • • • • • • • •

2005: 2006: 2007: 2008: 2009: 2010: 2011: 2012: 2013: 2014:

E-commerce Sales

Percent of Total Retail Sales

Growth

$ 86.3 billion $114.6 billion $132.8 billion $132.3 billion $134.9 billion $167.7 billion $194.7 billion $225.5 billion $264.3 billion $304.9 billion

2.3% 2.8% 3.2% 3.3% 3.7% 4.3% 4.7% 5.0% 5.7% 6.5%

25% 33% 16% no change 2% 24% 16% 16% 17% 15%

_________________________________________________________________

“Despite all this growth, online purchases remain a very small portion of retail sales. Over 90% of all United States retail commerce still takes place in physical stores.” The New York Times _________________________________________________________________

E-commerce sales by quarter in 2014 were as follows (change from same quarter in previous year in parenthesis): • First quarter: $71.5 billion (15.5%) • Second quarter: $75.1 billion (15.8%) • Third quarter: $77.8 billion (15.8%) • Fourth quarter: $79.6 billion (14.6%) Online auctions, which are not included in the above figures, generate about $70 billion in sales annually. According to eMarketer (www.emarketer.com), 162.6 million U.S. consumers shopped online in 2014, spending an average $2,626. The U.S. retail e-commerce sales share by product category is as follows (percentage of total; source: eMarketer, April 2014): • Computers and consumer electronics: 21.8% • Apparel and accessories: 17.1% • Automotive and parts: 10.4%

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• • • • • •

Books, music, and video: Furniture and home furnishings: Health and personal care: Toys and hobbies: Office equipment and supplies: Food and beverage:

8.9% 6.7% 5.7% 4.0% 2.7% 2.3%

Forrester Research (www.forrester.com) forecasts U.S. online retail spending as follows: • 2014: $294 billion • 2015: $325 billion • 2016: $355 billion • 2017: $385 billion • 2018: $414 billion

8.4 Back-to-School The back-to-school season typically is the second-biggest consumer spending event for retailers – behind the winter holidays – and can account for up to 15% of retailers’ annual sales. It is sometimes used to gauge the health of the upcoming holiday shopping season. According to NRF, back-to-school (K-12) and back-to-college total spending in 2014 was $74.9 billion, distributed as follows (change from previous year in parenthesis): • Back-to-school: $26.5 billion (-0.7%) • Back-to-college: $48.4 billion (5.7%) According to NRF’s 2014 Consumer Intentions and Actions Survey, conducted by Prosper Business Development (www.goprosper.com), students and parents reported average spending of $669 on back-to-school merchandise. Back-to-school spending was distributed by category as follows: • • • •

Apparel: Electronics/computers: Shoes: School supplies:

Avg. Per Student

Total Spending

$231 $212 $124 $101

$9.2 billion $8.4 billion $4.9 billion $4.0 billion

The National Retail Federation estimated 2014 back-to-college spending (excluding textbooks) at $48.4 billion, an increase from $45.8 billion the previous year. According to NRF’s 2014 Consumer Intentions and Actions Survey, students and parents reported average spending of $916 on back-to-college merchandise, an increase from $916 in 2013. Back-to-college spending was distributed by category as follows:

CONSUMER BEHAVIOR 2015-2016

• 80 •

• • • • • • • • •

Electronics/computers: Apparel: Food, snacks and beverages: Dorm/apartment furnishings: Personal care items: Shoes: School supplies: Gift cards/pre-paid cards: Collegiate branded gear:

Avg. Per Student

Total Spending

$244 $139 $104 $ 96 $ 78 $ 77 $ 74 $ 56 $ 47

$12.9 billion $ 7.3 billion $ 5.5 billion $ 5.1 billion $ 4.1 billion $ 4.1 billion $ 4.0 billion $ 2.9 billion $ 2.5 billion

8.5 Christmas Season Holiday Spending According to the National Retail Federation, total holiday retail sales increased 3.8% to $601.8 billion in 2013. _________________________________________________________________

“The holiday season generally accounts for 20% to 40% of a retailer’s annual sales, according to the National Retail Federation, and Thanksgiving weekend alone typically represents about 10% to 15% of those holiday sales.” The New York Times _________________________________________________________________

Early holiday shopping is on the rise. According to the NRF, 30% of adults say they shop for the holiday season year-round, 40% of adults began their holiday shopping in 2014 before Halloween, and 41% began in November. When asked why they begin shopping for the holiday season as early as September, 62% of shoppers said it helps them spread out their spending and 52% said that they do so to help avoid the stress of last-minute shopping. comScore (www.comscore.com) reported holiday season U.S. retail e-commerce spending from desktop computers for the 51 days of the November-December 2014 holiday season was $48.3 billion has been spent online, a 15% increase com pared with the corresponding days in 2013. Online sales for the major online seasonal shopping days and segments in 2014 were as follows (change from previous year in parenthesis): • November 1–December 21 (vs. Nov. 2-Dec. 22, 2013): $48.27 billion (15%) • Pre-Thanksgiving (November 1-26 vs. November 2-27. 2013): $20.18 billion (13%) • Thanksgiving thru Final Week $28.09 billion (16%)

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• • • • • • • • • • • • •

Thanksgiving Day (November 27): Black Friday (November 28): Holiday Weekend (November 29-30): Cyber Monday (December 1): Thanksgiving thru Cyber Monday Cyber Week (December 1-7): Cyber Work Week, Monday-Friday (December 1-5): Cyber Weekend (December 6-7): Green Monday (December 8): Free Shipping Day (December 18): Final Week (December 15-21): Final Work Week, Monday-Friday (December 15-19): Final Weekend (December 20-21):

$ $ $ $ $ $ $ $ $ $ $ $ $

1.01 billion (32%) 1.50 billion (26%) 2.01 billion (26%) 2.04 billion (17%) 6.56 billion (24%) 9.13 billion (14%) 7.28 billion (15%) 1.84 billion (11%) 1.62 billion (15%) 926 million (7%) 5.82 billion (18%) 4.84 billion (15%) 972 million (36%)

According to 2014 Holiday Shopping Behavior Survey, by Simon (www.simon.com), 83% of adults shopped at a mall during the 2014 holiday season; among those ages 18-to-33, 89% did so. Seventy-eight percent (87%) of shoppers said the wide variety they find at a mall proves helpful when searching for gifts. Eighty percent (80%) said that shopping bricks-and-mortar in the malls helps provide inspiration for their purchases and that they can organically discover products in a way they may not be able to online.

8.6 State-by-State Retail Spending According to the National Retail Federation, retail sales in 2013 were distributed by state as follows: • Alabama: $ 46.61 billion • Alaska: $ 8.08 billion • Arizona: $ 69.61 billion • Arkansas: $ 28.28 billion • California: $369.84 billion • Colorado: $ 52.83 billion • Connecticut: $ 38.84 billion • District Of Columbia: $ 4.66 billion • Delaware: $ 11.49 billion • Florida: $226.88 billion • Georgia: $ 93.55 billion • Hawaii: $ 15.53 billion • Idaho: $ 15.85 billion • Illinois: $125.87 billion • Indiana: $ 61.84 billion • Iowa: $ 28.59 billion • Kansas: $ 24.55 billion • Kentucky: $ 39.16 billion

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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Louisiana: Maine: Maryland: Massachusetts: Michigan: Minnesota: Mississippi: Missouri: Montana: Nebraska: Nevada: New Hampshire: New Jersey: New Mexico: New York: North Carolina: North Dakota: Ohio: Oklahoma: Oregon: Pennsylvania: Rhode Island: South Carolina: South Dakota: Tennessee: Texas: Utah: Vermont: Virginia: Washington: West Virginia: Wisconsin: Wyoming:

$ 41.33 billion $ 15.85 billion $ 61.84 billion $ 72.72 billion $ 96.34 billion $ 55.94 billion $ 27.66 billion $ 61.22 billion $ 11.18 billion $ 19.26 billion $ 35.43 billion $ 20.82 billion $ 96.96 billion $ 19.26 billion $184.30 billion $ 89.82 billion $ 7.76 billion $105.36 billion $ 31.07 billion $ 39.47 billion $126.49 billion $ 10.56 billion $ 42.26 billion $ 9.94 billion $ 65.26 billion $232.78 billion $ 26.10 billion $ 7.76 billion $ 81.73 billion $ 70.24 billion $ 16.78 billion $ 55.94 billion $ 6.52 billion

8.7 Market Resources Estimates Of Monthly Retail and Food Services Sales By Kind Of Business , U.S. Department of Commerce. (www.census.gov/retail/marts/www/marts_current.pdf) National Retail Federation, 325 7 th Street NW, Washington, DC 20004. (202) 783-7971. (www.nrf.com) Quarterly Retail E-Commerce Sales, U.S. Department of Commerce. (www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf)

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9 ENTERTAINMENT & LEISURE SPENDING

9.1 Expenditures On Leisure Activities Richard K. Miller & Associates (RKMA, www.rkma.com) estimates the U.S. entertainment and leisure market at $2.5 trillion. For comparison: U.S. retail sales were $5.1 trillion in 2013, according to the U.S. Department of Commerce; national healthcare expenditures were $3.0 trillion in 2013, according to the Centers for Medicare & Medicaid Services. The following are RKMA estimates of the major components of the leisure market: • Adult entertainment: $ 26 billion (sources: Forbes, U.S. News & World Report, Associated Press)

•

Art:

$ 40 billion

(source: Art Market Monitor)

•

Bars and nightclubs:

$ 20 billion

(source: National Restaurant Association)

•

Bicycles:

$

6 billion

(source: National Bicycle Dealers Association)

•

Casino/parimutuel wagering:

$ 68 billion

(source: American Gaming Association)

•

Collecting:

$ 70 billion

(source: Investors Business Daily)

•

Consumer books:

$ 23 billion

(sources: U.S. Department of Commerce)

•

Consumer electronics:

$165 billion

(source: Consumer Electronics Association)

•

Craft and hobby supplies:

$ 31 billion

(sources: Craft & Hobby Association)

•

Cultural, the not-for-profit arts industry:

$135 billion

(source: Americans for the Arts)

•

Dining out (casual and fine dining only):

$212 billion

(source: National Restaurant Association)

•

Equestrian:

$102 billion

(source: American Quarter Horse Association)

•

Event rentals:

$

3 billion

$

2 billion

(source: The Wall Street Journal)

•

Fantasy sports: (source: Fantasy Sports Trade Association)

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•

Festivals:

$ 25 billion

(source: International Festivals & Events Association)

•

Fishing:

$ 42 billion

(source: U.S. Fish and Wildlife Service)

•

Gardening:

$ 30 billion

(source: National Gardening Association)

•

Golf:

$ 34 billion

(source: National Golf Foundation)

•

Health and fitness clubs:

$ 18 billion

(source: International Health, Racquet & Sportsclub Association)

•

Hunting:

$ 34 billion

(source: U.S. Fish and Wildlife Service)

•

Lotteries:

$ 28 billion

(source: North American Association of State and Provincial Lotteries)

•

Motion picture and sound recording industries:

$ 58 billion

(source: SRI International)

•

Motorcycles:

$ 18 billion

(source: Packaged Facts)

•

Museums:

$ 21 billion

(source: American Alliance of Museums)

•

Music concerts:

$

5 billion

$

7 billion

(source: Pollstar)

•

Musical instruments and products: (source: Music Trades)

•

National Parks:

$ 12 billion

(source: U.S. Park Service)

•

Pets:

$ 53 billion

(source: American Pet Products Association)

•

Photography:

$ 17 billion

(sources: Photo Marketing Association, Bureau of Economic Analysis)

•

Premium video (pay TV, mobile video, DVD, broadband video, and theater/box office receipts):

$182 billion

(source: iSuppli)

•

Private Clubs:

$ 27 billion

(source: IBIS World)

•

Radio (ad-supported, not direct consumer spending):

$ 17 billion

(source: Radio Advertising Bureau)

•

Recreational boating:

$122 billion

(source: National Marine Manufacturers Association)

•

Recreation vehicles:

$ 13 billion

(source: Recreation Vehicle Industry Association)

•

Social caterers:

$

9 billion

(sources: National Restaurant Association, Technomic)

•

Spas:

$ 15 billion

(source: International Spa Association, First Research)

•

Specialty auto accessories:

$ 29 billion

(source: Specialty Equipment Market Association)

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•

Spectator sports:

$ 26 billion

(source: Sports Business Journal)

•

Sporting goods:

$ 56 billion

(source: Sporting Goods Manufacturers Association)

•

State Parks:

$ 20 billion

(source: National Association of State Park Directors)

•

Swimming Pools:

$ 12 billion

(source: IBISWorld)

•

Tailgating:

$ 15 billion

(source: American Tailgaters Association)

•

Television (ad-supported, not direct consumer spending):

$ 68 billion

(source: Adweek)

•

Theme and amusement parks; family entertainment centers:

$ 15 billion

(source: International Association of Amusement Parks and Attractions)

•

Travel and tourism (leisure travel only):

$501 billion

(source: Travel Industry Association)

•

Video games:

$ 22 billion

(sources: NPD Group, Entertainment Software Association)

•

Wildlife watching:

$ 55 billion

(source: U.S. Fish and Wildlife Service)

There is some overlap among the above expenditures. Many leisure activities are included in more than one category. This is somewhat offset by the fact that all types of leisure expenditures – hobby farming and wellness activities, for example – are not included in the list. Based on published statistics by the U.S. government, leisure expenditures are significantly less than the $2.5 trillion figure assessed here. According to The Bureau of Economic Analysis (BEA, www.bea.gov), Americans spend $745 billion on leisure pursuits. This figure is significantly lower because the BEA classifies many leisure expenditures elsewhere. Travel and tourism, for example, is considered a separate category. Auto customizing and collecting, as another example, are classified as transportation expenditures. Collectible purchases, pets, videos, and various other leisure-related purchases are classified as retail expenditures.

9.2 Market Resources Leisure Business Market Research Handbook 2015-2016, Richard K. Miller & Associates, October 2014. (www.rkma.com/report-detail.cfm?report_id=117)

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PART III: ACTIVITIES

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10 USE OF TIME

10.1 Americans’ Use of Time The American Time Use Survey (ATUS, www.bls.gov/tus/), first published in 2005 by the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor and updated annually, is the most recognized source for data on use of time. Use-of-time data is skewed because most people do not participate in all types of activities. ATUS accounts for this by quantifying for each type of activity the average amount of time spent both by all consumers and by only those who participate in an activity. According to the 2013 ATUS, published by the BLS in June 2014, American adults’ average 24-hour day, the percentage participating in various activities, and the average time spent among participants are distributed as follows: • • • • • • • • • • • •

Sleeping and personal care: Leisure and sports: Working and work-related activities: Household activities: Eating and drinking: Purchasing goods and services: Caring for/helping household members: Educational activities: Organizational, civic, religious: Caring for/helping non-household members: Telephone calls, mail, email: Other activities:

All Consumers

Pct.

Active Participants

9.54 hours 5.26 hours 3.46 hours 1.78 hours 1.23 hours 0.75 hours 0.53 hours 0.48 hours 0.32 hours 0.19 hours 0.15 hours 0.31 hours

100% 95% 43% 74% 96% 43% 26% 8% 14% 12% 20% 17%

9.54 hours 5.52 hours 8.01 hours 2.39 hours 1.27 hours 1.74 hours 2.07 hours 5.98 hours 2.31 hours 1.68 hours 0.72 hours 1.77 hours

By gender, adults’ 24-hour day was distributed as follows: • • • • • • • •

Sleeping and personal care: Leisure and sports: Working and work-related activities: Household activities: Eating and drinking: Purchasing goods and services: Caring for/helping household members: Educational activities:

Men

Women

9.31 hours 5.61 hours 4.20 hours 1.34 hours 1.26 hours 0.63 hours 0.36 hours 0.47 hours

9.76 hours 4.94 hours 2.77 hours 2.19 hours 1.20 hours 0.86 hours 0.69 hours 0.48 hours

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• 88 •

• • • •

Organizational, civic, religious: Caring for/helping non-household members: Telephone calls, mail, email: Other activities:

0.29 hours 0.17 hours 0.10 hours 0.27 hours

0.36 hours 0.22 hours 0.19 hours 0.35 hours

10.2 Older Americans Among those ages 55 and older, time spent daily doing select activities is as follows: • • •

Leisure and sports: Working and related activities: Household activities:

Ages 55-64

Ages 65-74

75 and Older

5.7 hours 3.6 hours 2.1 hours

7.2 hours 1.2 hours 2.4 hours

7.5 hours 0.4 hours 2.2 hours

By employment status, those ages 55 or older spent leisure time as follows: • • • • •

Watching TV: Reading: Socializing and communicating: Relaxing and thinking: Other leisure:

Not Employed

Employed

4.4 hours 1.0 hours 0.7 hours 0.7 hours 1.1 hours

2.8 hours 0.7 hours 0.6 hours 0.3 hours 0.7 hours

10.3 Students High school students spent the average weekday engaged in various activities as follows: • • • • • •

Sleeping: Education: Socializing, relaxing and leisure: Sports, exercise and recreation: Spiritual and volunteering: Working:

Not Employed

Employed

8.8 hours 6.3 hours 3.7 hours 0.9 hours 0.2 hours 0.0 hours

8.4 hours 5.6 hours 3.0 hours 0.6 hours 0.4 hours 1.6 hours

Full-time college and university students spent the average weekday engaged in various activities as follows: • Sleeping: 8.3 hours • Leisure and sports: 3.7 hours • Educational activities: 3.3 hours • Working and related activities: 3.1 hours • Travel: 1.5 hours • Eating and drinking: 1.0 hours • Grooming: 0.8 hours • Other: 2.3 hours

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10.4 Market Resources American Time Use Survey - 2013 Results, Bureau of Labor Statistics, June 2014. (www.bls.gov/news.release/atus.nr0.htm)

CONSUMER BEHAVIOR 2015-2016

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11 USE OF MEDIA & THE INTERNET

11.1 State Of The Media State of the Media Democracy, published annually by Deloitte (www.deloitte.com), assesses media consumption preferences in the U.S. The following are findings of the 8th edition, published in March 2014: • Thirty-seven percent (37%) of U.S. consumers ages 14 and older owned a trio of tablets, smartphones, and laptops at year-end 2013, a 42% increase from a year prior. This increase was primarily driven by continued tablet adoption (33% increase) and, to a lesser extent, smartphone ownership (18% increase). Women, who made up 35% of technology omnivores two years ago, accounted for 45% of this group. • U.S. consumer interest in streaming content increased from 17% in 2012 to 32% in 2013, with interest in digital formats outpacing demand for physical media. While overall consumption of media continued to increase, U.S. consumers preferred to rent versus purchase movies and television programming by a ratio of 3:1 in 2013, compared to 2:1 in 2012. This trend was even more pronounced among Millennials. • Despite increased interest in digital formats, consumers’ preference for pay TV subscriptions remained relatively unchanged in 2013, as consumers indicated they were largely content with their current pay TV services. Only 6% of consumers with pay TV services reported that they were considering giving up their service. Interest in accessing and purchasing a la carte programming was equal to consumer interest in bundled cable packages, with both at 47% in 2013. • As new media devices became easily available and ownership increased, U.S. consumers continued to be more distracted while watching TV at home, with 86% multitasking in 2013, an increase from 72% who did so in 2011. Millennials were the most active multitaskers, engaging in an average of four activities while watching TV. Gen-Xers and Baby Boomers multitasked more, with both generations engaging in more than one additional activity in 2013 while watching TV. Fewer than one-quarter (22%) of multitasking activities were directly related to the programs that consumers were watching. • As mobile device ownership grows, interactive videogaming is expanding beyond dedicated gaming consoles, with consumers spending 23% of their gaming time on smartphones and tablets. This trend was even more pronounced among younger generations and led by females, who spent 26% of their time gaming on smartphones and tablets. • Consumers continued to utilize the multi-functionality of gaming consoles, with 42%

CONSUMER BEHAVIOR 2015-2016

• 91 •

•

•

using their console to play physical discs, 32% to stream movie and TV content, and 26% using their console to watch online content. The impact of social media on consumers’ daily lives was profound, with 54% of consumers checking social networks daily, some as often as 10 times a day or more. Social media’s impact on consumers’ buying decisions was also profound. Online reviews or recommendations from someone within an individual’s social media circles were especially impactful, even when the reviewer had no relationship to the consumer. Sixty-eight percent (68%) of consumers said that online reviews or recommendations from someone within their social media circles had a high or medium level of influence over buying decisions. Online reviews by strangers also gained credibility, with 60% of consumers reporting online reviews by someone they do not know had a high to medium influence over their buying decisions.

11.2 Time Spent Using Media According to eMarketer (www.emarketer.com), the average time spent per day by U.S. adults using major media has been as follows (hours:minutes): • • • • • • •

TV: Tablet: Online: Smartphone*: Radio: Magazines**: Newspapers**:

* Non-voice

2010

2011

2012

2013

2014

4:28 0:21 3:04 0:40 1:43 0:32 0:43

4:37 1:38 3:14 1:02 1:42 0:32 0:40

4:44 1:59 3:03 1:34 1:39 0:31 0:37

4:39 2:22 2:49 2:02 1:33 0:30 0:33

4:39 2:43 2:39 2:14 1:27 0:29 0:28

** Print only

The time adults spend using digital media surpassed the time spent watching TV in 2013. According to Nielsen (www.nielsen.com), the monthly time adults, by age, spent using media in 2014 was as follows (hours:minutes): • • • • • • • • • •

Traditional TV: Time-shifted TV: DVD/Blu-Ray: Game console: Multimedia device: Internet on a computer: Video on Internet: App/Web on smartphone: Video on smartphone: AM/FM radio:

18-24

25-34

35-49

50-64

65+

96:53 8:43 4:09 16:17 2:27 31:43 17:01 50:51 2:48 50:53

117:20 15:19 6:25 11:17 2:41 35:36 15:02 50:28 1:56 54:33

138:27 17:08 4:58 4:24 1:57 39:21 12:06 46:53 1:29 64:05

180:56 17:33 4:21 1:27 1:04 32:53 8:32 34:05 1:03 69:25

211:55 14:28 2:39 0:28 0:53 22:26 3:45 25:54 1:41 61:33

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11.3 Internet And Mobile Access According to the Internet & American Life Project by Pew Research Center (www.pewinternet.org), 87% of American adults used the Internet at year-end 2013. Internet usage among adults was as follows: • 18-to-29: 97% • 30-to-49: 93% • 50-to-64: 88% • 65 and older: 57% Eighty-one percent (81%) of adults used computers to access the Internet at the workplace, school, home, or elsewhere. Usage was as follows: • 18-to-29: 89% • 30-to-49: 86% • 50-to-64: 84% • 65 and older: 56% Ninety percent (90%) of adults had a cellphone at year-end 2013. Usage of a cellphone was as follows: • 18-to-29: 98% • 30-to-49: 97% • 50-to-64: 88% • 65 and older: 74% Fifty-eight percent (58%) of adults had a smartphone at year-end 2013. Usage of a smartphone was as follows: • 18-to-29: 83% • 30-to-49: 74% • 50-to-64: 49% • 65 and older: 19% Seventy percent (70%) of adults had a high-speed broadband connection at home in 2013, according to Pew Research Center.

11.4 Online Activities Since 2000, the Center for the Digital Future (www.digitalcenter.org) at the University of Southern California, Annenberg School for Communication has conducted the Digital Future Project. Digital Future Project for 2013 reported that 86% of Americans accessed the Internet, with an average of 20.4 hours per week spent online. Eighty-three percent (83%) of households had a broadband connection. According to the center, the following percentages of Internet users engaged in these online activities weekly:

CONSUMER BEHAVIOR 2015-2016

• 93 •

• • • • • • • •

Email: Internet surfing without a specific destination: Looking for news online: Finding product information: Conducting online banking or other financial services: Instant messaging: Playing online games: Searching for humorous content:

96% 71% 60% 43% 38% 37% 35% 25%

11.5 Time Spent With Mobile According to comScore Media Metrix (www.comscore.com), consumers spent 60% of their digital time on mobile platforms in May 2014, an increase from 45% in February 2013. The distribution of time spent using digital media has been as follows: • • •

February 2013: September 2013: May 2014:

Mobile Apps

Mobile Browser

Total Mobile

Other Digital

38% 42% 51%

7% 8% 9%

45% 50% 60%

55% 50% 40%

11.6 Cross-Platform Access Of Content According to comScore, time spent online with various types of content is distributed by platform as follows: • • • • • • • • • • • • • • • •

Automotive: Business/finance: Entertainment: Food: Games: Health: Lifestyles: News/information: Radio: Retail: Social media: Sports: Technology: TV: Weather: Total:

Computer

Smartphone

76% 68% 50% 56% 18% 54% 50% 62% 8% 49% 33% 62% 20% 68% 36% 49%

16% 29% 39% 28% 48% 40% 32% 31% 77% 35% 58% 31% 64% 12% 55% 39%

Tablet

8% 3% 11% 16% 34% 6% 18% 7% 15% 16% 9% 7% 16% 20% 9% 12%

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11.7 Use Of Social Network Sites According to Pew Research Center’s Internet & American Life Project, 73% of online U.S. adults used social networking sites at year-end 2013, up from 67% in 2012. The percentages by age are as follows: • 18-to-29: 89% • 30-to-49: 79% • 50-to-64: 60% • 65 and older: 45% Although online seniors are less likely than other age groups to use social networking sites, adoption rates for those 65 and older have tripled in the last four years, from 13% in 2009 to 43%. Forty-two percent (42%) of online adults use multiple social networking sites, according to Pew. The distribution of sites used by adults is as follows: • None: 27% • One: 36% • Two: 23% • Three: 12% • Four: 5% • Five or more: 2% GlobalWebIndex (www.globalwebindex.com) reported that adult Internet users accessed social network sites in 2013 using various devices as follows: • Smartphone: 66% • PC: 65% • Tablet: 54% According to eMarketer, 97.9 million people (any age) in the U.S. accessed social network sites using a smartphone. Visits to social network websites and forums in October 2014 were distributed as follows (source: Experian [www.experian.com]): • Facebook: 61.4% • YouTube: 17.4% • Google+: 3.5% • Twitter: 2.3% • Yahoo! Answers: 1.2% • Linkedin: 1.2% • Pinterest: 1.0% • Instagram: 0.7% • Reddit: 0.7% • Tumblr: 0.6% For comparison, six years ago MySpace dominated the social networking scene, as Facebook now does, with visits to social networking websites distributed in 2008 as CONSUMER BEHAVIOR 2015-2016

• 95 •

follows: • MySpace: • Facebook: • YouTube: • Yahoo! Answers: • myYearbook: • Yahoo! groups: • Tagged: • Yahoo! Member Directory: • MySpaceTV: • Bebo:

44.4% 12.7% 10.1% 1.5% 1.0% 1.0% 0.9% 0.8% 0.8% 0.7%

comScore reported the number of visitors to social networks in August 2014 as follows: • Facebook.com: 217.58 million • Twitter.com: 121.11 million • LinkedIn: 88.82 million • Pinterest.com: 64.22 million By age, social networks used in July 2014 were as follows (source: eMarketer): • • • • • • • • • • • • •

Facebook: YouTube: Twitter: Instagram: Google+: LinkedIn: Snapchat: Tumblr: Vine: WhatsApp: reddit: Flickr: Pinterest:

14-17

18-34

35-54

14-54

63.7% 81.9% 31.0% 56.4% 24.6% 1.5% 36.8% 23.8% 31.8% 8.0% 8.0% 3.6% 3.6%

83.2% 77.6% 38.7% 37.2% 25.0% 15.9% 21.1% 15.6% 15.5% 9.8% 8.5% 3.9% 2.0%

74.1% 54.2% 28.3% 16.0% 20.4% 20.0% 4.2% 5.7% 3.5% 4.0% 3.9% 6.9% 0.6%

76.8% 66.4% 32.8% 28.5% 22.7% 16.6% 14.2% 11.5% 11.1% 6.8% 6.2% 5.4% 1.5%

11.8 Market Resources comScore, 11950 Democracy Drive, Suite 600, Reston, VA 20190. (703) 438-2000. (www.comscore.com) Digital Democracy Survey, 8th Edition, Deloitte, March 2014. (www.deloitte.com/view/en_US/us/Industries/media-entertainment/digital-democracy/index.htm)

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Digital Future Project, Center for the Digital Future at the University of Southern California, Annenberg School for Communication & Journalism, 11444 West Olympic Boulevard, Suite 120, Los Angeles, CA 90064. (www.digitalcenter.org) eMarketer, 11 Times Square, New York, NY 10036. (212) 376-5291. (www.emarketer.com) Pew Internet & American Life Project, 1615 L Street NW, Suite 700, Washington, DC 20036. (202) 419-4500. (www.pewinternet.org) The Nielsen Company, 85 Broad Street, New York, NY 10004. (212) 708-7500. (www.nielsen.com)

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12 CULTURAL ACTIVITIES

12.1 Public Participation In The Arts Survey of Public Participation in the Arts, published once a decade and most recently in 2013 by The National Endowment for the Arts (www.arts.gov), asked U.S. adults which cultural and performing arts activities they had participated in during the prior 12 months. Responses were as follows: Percent

Number

Arts through electronic media: • Used TV, radio, or the Internet to access arts programming: - Music of any kind: - Programs or information about the visual arts: - Ballet, modern, or contemporary dance programs/shows: - Theater productions (e.g., a musical or stage play): - Books, short stories, or novels read aloud: - Opera:

71% 61% 57% 14% 11% 7% 7% 4%

167 million 144 million 135 million 33 million 26 million 16 million 16 million 9 million

•

38% 34% 16%

90 million 80 million 38 million

8% 3%

19 million 7 million

27%

64 million

Moviegoing (excluding at-home viewing):

59%

139 million

Reading (excluding reading required for school or work): - Books: - Novels or short stories: - Poetry: - Plays:

58% 54% 45% 7% 3%

136 million 127 million 106 million 16 million 7 million

•

Used a handheld or mobile device to access art: - Music of any kind: - Novels, short stories, or plays: - Visual artworks (e.g., painting, sculpture, graphic design, photography): - Theater or dance performances: Used a DVD or CD player, record-player, or tape-player to watch or listen to music or to programs about theater, dance, visual arts, or literature:

CONSUMER BEHAVIOR 2015-2016

• 98 •

Visual and performing arts attendance: • Attended a visual arts event or activity: - Touring a park, monument, building, or neighborhood for historic or design purposes: - Attending a visual arts festival or a crafts fair: - Visiting an art museum or gallery:

49% 39%

115 million 92 million

24% 22% 21%

57 million 52 million 50 million

•

Attended a live performing arts event: - Outdoor performing arts festivals: - Musical or non-musical plays: - Classical music, jazz, or Latin, Spanish, or salsa music: - Dance of any kind: - Opera:

37% 21% 18% 17% 7% 2%

87 million 50 million 42 million 40 million 16 million 5 million

Art-making or art sharing • Created, performed, or shared art through various activities: - Social dancing: - Weaving, crocheting, quilting, needlepoint, knitting, sewing: - Played a musical instrument: - Sang, either alone or with others: - Created leatherwork, metalwork, or woodwork: - Created pottery, ceramics, or jewelry: - Acting:

50% 32% 13% 12% 9% 8% 5% 1%

118 million 76 million 31 million 28 million 21 million 19 million 12 million 2 million

•

Performed or practiced in a specific art form: - Dance of any kind: - Choral singing or singing in a choir or glee club: - Classical music: - Latin, Spanish, or salsa music: - Jazz: - Musical or non-musical plays: - Opera:

10% 5% 3% 2% 1% 1% 1%