All four trends are relevant to growing sales of these home entertainment products. Older Americans will have more leisure time in retirement to spend at home, some of which would be spent watching more television. People of all ages living far from centers where they can attend live sports, music, and other events are likely to watch such entertainment on television. Increased incomes and communication technology will make it possible for these consumers to buy high-quality equipment to enjoy better reception. All four trends favor producers of home entertainment. AACSB: 3 LL: 3 Learning Objective: 03-04 Describe how technological changes can affect marketing 226. (p. 69) Which generational cohort is part of the graying of America? Describe the interests and lifestyles of this cohort and why it is important to marketers A major reason for the graying of America is that the baby boomers—the generation of children born between 1946 and 1964-are growing older. As the 78 million boomers have aged, their participation in the workforce and their earnings have increased, making them an important consumer market. This group accounts for an estimated 56-58 percent of the purchases in most consumer product and service categories. In the future, boomers' interests will reflect concern for their children and grandchildren, their own health, and their retirement, and companies will need to position products to respond to these interests. Generally, baby boomers are receptive to anything that makes them feel younger. AACSB: 3 LL: 2 Learning Objective: 03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy 3-193
Chapter 03 - Scanning the Marketing Environment 227. (p. 69) Which generational cohort is also known as the baby bust? Describe the interests and lifestyles of this cohort and explain why it is important to marketers. The baby boom cohort is followed by Generation X, which includes the 15 percent of the population born between 1965 and 1976. This period is also known as the baby bust, because the number of children born each year was declining. This is a generation of consumers who are self-reliant, supportive of racial and ethnic diversity, and better educated than any previous generation. They are not prone to extravagance and are likely to pursue lifestyles that are a blend of caution, pragmatism, and traditionalism. In terms of net worth, Generation X is the first generation to have less than the previous generation. AACSB: 3 LL: 2 Learning Objective: 03-02 Describe how social forces such as demographics and culture can have an impact on marketing strategy 228. (p. 70) Which generational cohort is often referred to as the echo-boom? Describe the interests and lifestyles of this cohort and explain why it is important to marketers. The generational cohort labeled Generation Y includes the 72 million Americans born between 1977 and 1994. This was a period of increasing births, which resulted from baby boomers having children, and it is often referred to as the echo-boom or baby boomlet.
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