Consumer Behaviour & Psychology
The Silver Spenders Holly Freer FRE13392825 2nd Year (BA) Fashion Marketing Liz Bunting 2,836 words
(Advanced Style Blog, 2016)
I, Holly Freer, certify that this is an original and individual piece of work and that no part of this has been written by anyone else. I have acknowledged (appropriately referenced using the Harvard Referencing system) all sources and citations. No section of this case study has been plagiarised. This work has not been submitted for any other assessment.
Contents Executive Summary Introductuion to both segments Lifestyle Motivations Consumer Identity Consumer Segment Profile Pen Portrait Key Influences Technology and the Silver Spenders Cultural norms and NAtional identities Trends within the segment The decision making process In Store shopping behaviour Online shopping behaviour Psychographics Introduction to Primary Research Survey Analysis SPSS Analysis Focus Group Analysis Interview Analysis Moodboards Recommendations for Brands Bibliogrpahy Appendix
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EXECUTIVE SUMMARY Certain lifestyles and motivations can influence consumers shopping behaviour and this report will conduct an analysis the characteristics of the Silver Spender segment and the way in which they spend their money in the fashion and beauty market. This report will present qualitative and quantitative data, from both secondary and primary research. Redefining the segment, the Silver Spenders are reinventing their identity and social status. They are reinstating what it means to grow old and generally are feeling misrepresented in fashion makerting. 28% of tablet owners are from this ever growing segment (WGSN, 2013), showing that they are embracing developments in technology. Priorities lie beyond themselves, with one in ten supporting family and grandchildren (Mintel Academic, 2014), giving an insight to the consumer’s behaviour whilst shopping and the fact that they may be considerate of others when purchasing. Page 2
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INTRODUCTION TO SEGMENTS The Silver Spender segment highlights those aged 55 and over, therefore the current baby boomers market falls within this catagory; having been born between 1946 and 1964. (WGSN, 2015) As time goes on, the segments will have shifted and the baby boomers will no longer be the generation falling under the Silver Spenders category. Comparing the US and UK has a lot of similarities but the markets are both affected by separate financial and political factors. Both westernised countries, there are strong similaritites within their cultures which has a strong influence on their purchasing behaviour.
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LIFESTYLES The Silver Spenders in the UK are prioritising; whether it be their budgeting or supporting family and grandchildren. One in ten (13%) are supporting their children and grandchildren financially. (Mintel Academic, 2014) which not only affects their spending habits, but also their attitudes whilst shopping when considering others. Over half (55%) of today’s over 55’s own a credit card (Mintel Academic, 2014) but when it comes to credit, the Silver Spenders are wise and are mostly using them for large financial purchases and security reasons. The US market is seeing a steady rise in ‘encore careers’ (WGSN, 2015) with the Baby Boomers establishing new careers later on in life. ‘Forever young’ attitudes are having a large impact on this segments lifestyles. Dating sites are also targeting this demographic, as they are the largest segment on dating sites (WGSN, 2015). The online dating market has adapted to this rise, so much so that an age specific dating app named Stitch has been released specifially for the segment. (Advanced Style Blog, 2016)
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MOTIVATIONS ‘motivations refers to the process that lead people to behave as they do.’ - (Solomon, 2000) As described by Benson (2011), a consumer’s motivations are the starting point which then develop into a drive and a want for something. Maslow’s hierarchy of needs (see fig. 1) addresses the relationship between deficiency and growth needs; those of which we need first to progress up the chart. The silver spender’s market seeks a functional quality from a product before they allow themselves to seek higher up the pyramid for aesthetically pleasing products. They find themselves fulfilling utilitarian needs Within the Silver Spenders market, we see that they combine hedonic and utilitarian needs when purchasing, there is a balance between need and want. Page 5
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CONSUMER IDENTITY ‘Old consumers command a huge amount of spending power.’ - (WGSN, 2015) Divorce rates within this generation in the US have doubled (WGSN, 2015) and we are seeing a new lease of life. With no young children to care for and plenty of spending money, we see the Silver Spenders reinventing their identity. New York blogger, Ari Seth Cohen, walks the streets photographing men and women within this generation that demonstrate the idea of a fashionista. producing his blog, ‘Advanced style’, (see fig. 2) he promotes the consumer’s idea of self worth and how they wish to be perceived. There is a sense of misconception in the UK with 37% of the segment feeling excluded from advertising (Mintel Academic, 2015). When they are addressed, a large proportion then feel stereotyped (see fig. 5) and there is a strong opportunity for brands to understand this consumer segment and how they wish to be perceived. Page 6
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TECHNOLOGY “This is the most active senior generation in history... they will almost certainly redefine old age.” - (WGSN, 2013)
Research states that the over 65’s make up a large proportion of tablet owners (28%), with that figure having doubled since 2011 (WGSN, 2013). There is no denying that this segment are techno-savvy, it’s the way in which they are using them is what differs from the younger demographics. UK research shows that the Silver Spenders are downloading apps for these tablets, although 52% of app users only download apps if they are free (Mintel Academic, 2014) Referring back to the idea of the segments youthfulness, the Silver Spenders feel capable when it comes to using technology and it is the idea of ‘seniors only technology’ that makes them cautious. WGSN presents the idea that the use of tablets and technology is not a focus, yet they are used whilst multi-tasking. These forms of technology often compliment other forms of media. (WGSN, 2013) (Advanced Style Blog, 2016)
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CULTURAL NORMS AND NATIONAL IDENTITES
Across the US and the UK, culture and social norms are very much alike with both countries predominantly English/ American speaking. As westernised countries, fashion is highy influenced by celebrity media (Zimmerman, 2013) and the every day living is highly reflected within this concept. Within both locations, there is a sense of freedom and identity; with freedom of speech and forms of social acceptance.
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TRENDS
Both locations see a strong trend in needing savings. In the UK, there has been a decline mortality rates (men by 48% and women 39%) between 1980 and 2010 (Mintel Academic, 2012). As people get older, they are finding themselves fitter and healthier and ever and therefore, those who hit retirement age are staying in the work place longer (Mintel Academic, 2015). Whilst having to pay for medical bills, seniors in the US are struggling financially when in ill health; especially when it comes to paying rent (Mintel Academic, 2016). Without systems like the NHS, savings are essential as a security measurement. As an ever growing segment, the senior’s growth is expected to expand by 106% between 2010 and 2050, increasing senior poverty by 180% (Mintel Academic, 2016). Even though they are already struggling financially, there will be even more of a strain for the seniors when it comes to leisurely spending. It is also suggested that seniors in the UK, who still accommodate their adult children, are putting themselves at financial risk. Doing so can cost them an extra 1,200 a year on groceries. (Mintel Academic, 2014) Page 11
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DECISION MAKING PROCESS The stages in consumer decision making (see fig. 4) outlines the 5 stages of purchase behaviour. Purchasing is considered to be a problem solving decision and the consumer has to identify this issue before the process begins. Silver Spenders focus heavily on the second stage of the model, where research is conducted behind a product or a brand. Such research could include reviews and opinions of others, as a person’s own opinion is determined as a reliable source. Silver spenders may be considered to use extended problem solving; using both information from own memory and sourcing information about a product from places such as online sources. Research shows that a purchase decision is carefully planned and examined, there is a long thought process behind an investment.
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IN STORE SHOPPING BEHAVIOUR In store behaviour with the Silver Spenders is highly influenced by atmospherics. Their choice to shop online, with a brand, is highly dependent on their experience beforehand in store (LS:N Global, 2014).
The idea that the Silver Spenders have a lot of life experience has a big impact on the way in which they shop; especially in the sense that they wish to understand product knowledge. The over 55’s require a high quality of service in store that isn’t considered as patronising, and also service from one who is of a similar age (LS:N Global, 2014). Studies have also proven that the Silver Spenders are likely to spend twice as much in a store that they find comfortable and easy to navigate (LS:N Gloabl, 2014). Once the consumer feels relaxed in an environment, only then can they explore.
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ONLINE SHOPPING BEHAVIOUR
As far as technology is concerned, over 76% of American Silver Sperders consider themselves to be frequent internet users (LS:N Global, 2015), although a large proportion of this time is spend on social media rather an online retail. A key resource this segment values is the opinion and feedback of others; they base their opinions heavily on their own research . With all this access to the internet, this is how the Silver Spenders shop online for reassurance and validation about a product or a brand.
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PSYCHOGRAPHICS Psychographics is a collaboration of many factors. It provide us with the activities, interests, opinions and demographics of a consumer to the determine how to segment the market effectively. Analysing these factors allows a brand to make a deep connection with the Silver Spenders segment and how their interests determines their thought process. The AIO model (Wells and Tigert, 1971) outlines each individual characteristic and allows me to determine the areas of study for further primary research.
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PRIMARY RESEARCH Having my own primary in the havingconducted more responses to theresearch, UK surform of a survey, interviews and a focus group, I vey meant that the data produced is have both quantitative and qualitative data to anaylse.
more reliable.
Having two separate surveys allowed me to distribute one to each country, the US and the UK. 1 With a larger proportion having completed the UK Having conducted survey, the US results are a lot fewer and therefore more unreliable in comparison to the UK’s.
Conducting
A focus group interview, with four candidates, allowed in depth conversation and exploration within the topics of conversation; but it was found that one opinion could have an influence on another’s and some candidates found themselves swaying in their opinion. Conducting a single interview, in the UK and over the phone for the US, allowed a one on one approach. It also gave the opportunity to address specific questions and develop further in topics that may be of interest for my studies.
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PRIMARY RESEARCH
Having the option for respondents to add any other comments allowed them to speak freely without any prompting. Comments varied from their enjoyment of shopping and how often; yet there was a distinct correlation when it came to online purchasing. A handful chose to explain how they enjoyed to purchase online, but it was the returns policy that takes away from the convenience factor.
“I buy online only when I want further items that I have already bought in store and know what it will be like” - UK Candidate “I like websites that include previous purchasers review of item in narrative form” - US Candidate
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TOP FACTORS TO CONSIDER WHEN PURCHASING FASHION ITEMS
When asked to ‘Please select the factors that you find most important when purchasing fashion and beauty items.’ (see fig. 7 & 8), a large proportion of candidates chose ‘quality’. This is a factor that we see consistent through out the shopping experience for the silver spenders; from the product to the service that they receive.
UK
Second to that were ‘functionability’ and ‘style and fashionability’, both of which were very similar percentages. The US shows a very practical quality having chosen ‘functionability’, which represents untilitarian motivations when purchasing.
US
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Hedonic Shopping Analysis (Arnolds and Reynolds, 2003) Within my survey, I incorporated the 6 hedonic shoppping types within 12 questions to analyze how the Silver Spenders break away from such a utiliterian frame of mind and to what for what reasons they seek pleasure in shopping for fashion products. The results were clearly very similar; the same concepts of value for money and combining purchasing fashion items with other day to day jobs were dominant within. Although, the third and contrasting choices are very dis-similar. The idea of advernture shopping suggests that the US consumer seeks leisurely pleasure whilst shopping which skews the whole US hedonic results from the UK’s. The UK consumer suggests the idea that building information and researching is a key part of the shopping task, making it a lot more educational and a well thought out process. UK VALUE SHOPPING: Hunting shopping; extensive research for special sales events. GRATIFICATION SHOPPING: Browsing with no particular goal; combining shopping with spa visit or meal/drinks. IDEA SHOPPING: Browsing, identifying and gathering information as a goal in itself. US VALUE SHOPPING: Hunting shopping; extensive research for special sales events. GRATIFICATION SHOPPING: Browsing with no particular goal; combining shopping with spa visit or meal/drinks. ADVENTURE SHOPPING: Window shopping, browsing, sensory immersion.
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IBM SPSS ANALYSIS
IBM’s SPSS program allows me to anaylse my data in depth and with accuracy. There are several tests within the SPSS package that I could use to test my data and using the Chi-Squared test allows me to observe the distribution of my data. There is no significance between the two countries and therefore no strong differences between the two sets of data. (see fig. 11)
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UK FOCUS GROUP
“Sometimes I go weeks without seeing anything. I don’t go out looking for something, I like something to see me.” Conducting a focus group interview presented obvious themes within that highlight the fact the respondents still enjoy engaging with brands and investing their money in fashion but have to rethink the way in which they physically visit stores. Candidates spoke about how they often take coffee breaks and sometimes have to may a day out to go shopping or browsing in the stores, as it is physically more challenging as they age. The respondents were also very confident when it comes to purchasing online; with three out of four owning a tablet and feeling comfortable when it comes to online shopping.
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UK/ US INTERVIEWS
When anaylsing the transcripts from my two surveys, it was important to me to focus not only on what the candidates said in response to a question but also the tone of their language. Both interviews were set up in their own home to allow the candidates to feel comfortable and at ease, allowing an honest answer to the questions. The language used by both candidates varies; US candiate was a lot more positive and enthusiastic within the way she spoke about online shopping and how comfortable she is online with retailers. The way in which she spoke, as well as what she said, was very relaxed which gave an insight to how she felt. In comparison, UK candidate focused more so on aspects such as having a large selection of choice and buying regular pieces on discount or offer.
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Key Influencers
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Social Media Habits
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Consumer Identity
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Shopping Habits
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RECOMMENDATIONS Through out my research, there has been a strong connection between the Silver Surfers within the UK and the US. Both have proven to be very technologically confident and embracing their youth; although still embracing their age. Brands could engage with this market by adapting this thrive for youth, relating to how the consumer perceives themselves rather than how they are typically perceived by society. The segment wishes to be challenged, without being patronised and this is to key to gaining, not only their attention, but their trust. The over 55’s have a strong appreciation for quality; in product, life and service. When targeting the Silver Spenders, an in store experience rich with good quality service is key. In the same way as marketing, they do not wish to be patronised but educated. They are a wise generation who are adapting to a technology advance but are still within their youth. Page 27
BIBLIOGRAPHY
Benson, N. (2011) The Psychology Book. London: Dorling Kindersley Limited. Cohen, A. (2016) Advanced Style. Available at: http://advancedstyle.blogspot.co.uk. LS:N Global (2014) ‘Flat Age Society: Retail Strategies’ Available at: https://www-lsnglobal-com.arts.idm. oclc.org/markets/article/15269/flat-age-society-retail-strategies (Accessed: 27 Februrary) LS:N Global (2015) ‘Boomers and Seniors Feel Overlooked by Technology Brands’ Available at: https:// www-lsnglobal-com.arts.idm.oclc.org/behaviours/article/17068/boomers-and-seniors-feel-overlookedby-technology-brands (Accessed: 11 February 2016) LS:N Global (2015) ‘Pew Study Highlights Internet Adoption Rates Among Seniors’ Available at: https:// www-lsnglobal-com.arts.idm.oclc.org/news/article/15538/pew-study-highlights-internet-adoption-ratesamong-seniors (Accessed: 11 February 2016) McKinsey & Company (2015) ‘Digital Inside: Get Wired for the Ultimate Luxury Experience’ Available at: http://www.mckinsey.com/~/media/mckinsey/industries/consumer%20packaged%20goods/our%20 insights/is%20luxury%20ecommerce%20nearing%20its%20tipping%20point/digital_inside_full_pdf. ashx (Accessed: 29 February 2016) Mintel Academic (2012) ‘Living for Longer’ Available at: http://academic.mintel.com.arts.idm.oclc.org/ trends/#/observation/608562 (Accessed: 12 February) Mintel Academic (2014) ‘Lifestyles of the Over-55’s and Seniors’ Available at: http://academic.mintel. com.arts.idm.oclc.org/display/679779/ (Accessed: 8 February) Mintel Academic (2014) ‘Putting Your Future at Risk’ Available at: http://academic.mintel.com.arts.idm. oclc.org/trends/#/observation/721223 (Accessed: 11 February)
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