News media coverage reports that gas may hit $5 per gallon by summertime. We also know that consumers typically reduce costs where possible and focus more on saving money when necessary living expenses, such as gas, increase. This led us here at BFG to some questions. How is this trend affecting the Generation Y demographic (women and men ages 21-34) specifically? What changes are they making? And finally, what are the implications for marketers?
In typical BFG form, we went out to find the answers. We surveyed 424 "Gen Y" respondents in 22 markets to get a better picture of the changes happening in this segment and in doing so, found some pretty interesting results.
We found that people ages 21-34 are already on the ball when it comes to financial planning for the future. 41 percent of respondents were already making plans for their finances on the chance that gas prices may rise to $5 per gallon. That led us to our next question: what changes are being made?
According to our results, 36 percent of the group is putting off an "important" purchase. New cars (21 percent) and summer travel (11 percent) are the big ticket items that they are avoiding. However, more than two-thirds of these “important purchases” are smaller items such as tobacco, alcohol, beer and non-essential items such as shoes and gym memberships.
The implications for marketers? Living cost increases can leave a negative impact on brand loyalty in this demographic. Many of our respondents indicated that they are willing to drop their favorite brands for lower priced competitive labels based on rising gas prices.
Because of this, building a strong brand relationship is more important now than ever. Look to social platforms that fit your brand best to start and strengthen...