Millennials: Suddenly saving?

thumbnailby Hans Eisenbeis

WHAT’S HAPPENING

  • While we’ve reported that many postcollegiate Millennials are in terrible financial shape, thanks to loads of debt and awful job prospects, a July 2009 study by Fiserve finds that Millennial spending behavior has changed dramatically.
  • 20somethings use their debit cards more often than any other generation, and more of them have savings accounts than any other generation, too.
  • Fiserv also found that young people do a significant amount of their personal finance online, and they make extensive use of their friend and family networks. For 20somethings, major purchases tend to get a thorough consideration through both online research and social networks.

WHAT THIS MEANS TO BUSINESS

  • Millennials may be a lot more financially responsible than they’re frequently given credit for. The “Lost Generation”of the Great Recession may end up looking a lot like the Greatest Generation of the Depression.
  • 20somethings are powerful brand advocates because they constantly network and recommend. But get on their wrong side, and a brand could lose a whole generation in the time it takes to refresh a screen.

RESOURCES

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10 MINUTES, 10 QUESTIONS

thumbnailby Abelardo de la Peña Jr.

That sound you’re hearing is 120 million census forms landing in mailboxes this week. At long last, the census has arrived.

The count has far-reaching implications, determining how $400 billion in federal funds (for housing, health and education programs) will be distributed to local governments annually, while also helping to shape state and local legislative and congressional districts. Also important: Data released by the Census Bureau will, in upcoming years, be mined by brands and marketers.

Some estimates are already being floated. Southwestern states will see proof of an increase in population, primarily from Latino growth. This will be offset by population loss in the Midwest. And with the expansion of choices dealing with race, ethnicity and national origin on the 2010 form, the count will more accurately demonstrate the growth and diversity of multicultural America.

Not that there hasn’t been some contention. Caribbean Americans lobbied to have their own check box and lost (AP 2.24.10). Taiwanese organizations are advocating for all Taiwanese Americans to self-identify as “Other Asian” and write in “Taiwanese” (8Asians.com 3.8.10). And a New York-based group is encouraging Afro-Latinos to check off both “Hispanic” and “black” on the 2010 form (ReddingNewsReview.com 3.9.10).

The Census Bureau’s ad campaign urges Americans to answer “10 Questions in 10 Minutes.” Maybe they’ll get it right in the next 10 years.

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Web-weary take to social media suicide

thumbnailby Anna Otieno

WHAT’S HAPPENING

  • While more than 400 million consumers are active online social network users, a growing subset are getting off the social media carousel. Many consumers are quitting online soc nets over concerns they worsen their offline lives.
  • Consumers are weaning themselves off of sites like Facebook and Twitter, some even quitting cold turkey. Free services like Web 2.0 Suicide and Seppukoo (Japanese word for “suicide”) have helped tens of thousands of social network users completely erase their online profiles (USAToday.com 2.10.10).
  • Facebook isn’t having it. The largest online social network has blocked the servers of both Web 2.0 Suicide and Seppukoo — and sent cease-and-desist letters.

WHAT THIS MEANS TO BUSINESS

  • Consumers aren’t ditching digital friendship in droves, but they are getting back to the root of BeehivingSM — good ‘ol fashioned face-to-face interaction.
  • As online social networks proliferate to the point of bewilderment, consumers are pushing back and reclaiming some of their personal lives from the Web’s entanglements.

RESOURCES

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College-bound: More Latino students leaving the nest

thumbnailby Rocio Zamora Arzola

WHAT’S HAPPENING

  • When it came to college, Latino students tended to attend one near home to stay close to family. Now, more young Latinos are opting for schools outside their communal comfort zones.
  • Between 1975 to 2009, Latinos enrolling in four-year colleges located more than 50 miles from home rose from 46% to 59%, according to a study by UCLA’s Higher Education Research Institute (LATimes.com 2.15.10).
  • Why the change?  Researchers attribute it to the growth of the Latino middle class, the rising educational confidence of second and third generation Latinos and colleges and universities in Midwest and New England stepping up recruitment of college-age Latinos.

WHAT THIS MEANS TO BUSINESS

  • Latino parents with some college experience of their own are becoming more willing than previous generations to loosen family ties and allow their children to leave home for an education.
  • Like all college students far from home, this growing consumer cohort is going to need a lot of stuff: Think warm clothes, family wireless plans and frequent flyer programs.

RESOURCES

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“Toughest race” lets men (and women) get in touch with their inner commando

thumbnailby Hans Eisenbeis

WHAT’S HAPPENING

  • In the world of endurance sports, there’s been a slow but steady escalation from marathons to ultramarathons, fun-runs to eco-challenges. Now a new race circuit has developed that seems a mashup of Iron Man athleticism and Burning Man primitivism.
  • Billed as the world’s toughest one-day endurance race on the planet, the “Tough Mudder” series resembles nothing so much as a 7-mile-long boot-camp obstacle course, replete with mud pits, barbed wire barricades, ropes courses, water crossings and even fire pits.
  • Races have been staged in New York, Pennsylvania, and Texas and they’re planned in Illinois, Washington, California, and Colorado.  Participants can get a discount on entry fees if they pledge to raise $150 for the Wounded Warrior Project, a charity that benefits injured servicemen and women.

WHAT THIS MEANS TO BUSINESS

  • Misogyny during  Superbowl XLIV ads? Those may have signaled a new chapter in Brave New ManSM regression, as men (and the women who love them) seek to embrace positive aspects of traditional he-manhood.
  • But beyond the gender wars, the comforts of modern living have spawned in many consumers an appetite for raw, unmediated, even painful experiences and achievements.

RESOURCES

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Vaccine-autism link retracted, 12 years later

thumbnailby Abby Shannon

WHAT’S HAPPENING

  • After a multi-year investigation behind the claims of U.K. doctor Andrew Wakefield, reputable medical journal The Lancet retracted his 1998 paper that linked the childhood measles, mumps and rubella (MMR) vaccine to autism (CNN.com 2.2.10).
  • Wakefield was found to have acted unethically — conducting invasive and unnecessary medical procedures to panels of children — and his investigations (and design study) have now been proven to be false, building on scientists’ long-term research supporting no link between the MMR vaccine and autism.
  • The Lancet episode puts another nail in the coffin of the long-debated “to vaccinate or not to vaccinate” question that has plagued many parents for years.

WHAT THIS MEANS TO BUSINESS

  • For consumers who feel less-than-well-versed around scientific studies, reputable publications are the go-to conduits for trusted information.
  • Parents who have been living in fear of immunizations may now give them a shot, and feel more comfortable with their decision.

RESOURCES

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FROM BROCCOLI TO ONLINE INSIGHTS

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by Josh Kimball

Each year, Iconoculture throws a consumer insights extravaganza-cum-raging poolside sleepover. This year’s Iconosphere is just months away — it takes place in L.A. May 17-19 — so around here, the research is flying.

One of the ways we’re trying to better understand consumer mood and motivation is through social media research. I’ll be co-presenting on the power of subversion in branding, so right now I find myself waist-deep in online reactions to American Apparel’s recently finished Best Bottom in the World Contest. Exhausting. (Spoiler alert: The contestant known as Boom Boom won. The blogosphere rolled its eyes.)

Other strategists have been similarly engaged. For a session focusing on consumer empathy and authenticity, strategist Mandy Levenberg’s noted how parents interact with one another online, including conversations about how to get their kids to eat dinner. (We note, too, that the online commiseration — at least on the topic of refusing vegetables — comes in late-afternoon waves.)

Since Facebook began making more of its user data public a few months ago — when users allow, of course — social media analytics companies (including our partner Collective Intellect) have started making it easier to get to the insight, and to make more sense of the chatter.

So that’s something of a sneak peek into our May Iconosphere event. There will be underwear. And broccoli. And social media research. And robot vacuum cleaners. And people to make wonderful sense of it all.

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U.S. Latinas bearing recession’s brunt with lower pay, more fiscal responsibility

thumbnailby Rocio Zamora Arzola

WHAT’S HAPPENING

  • U.S. Latinos are being hit hard by the recession. Hit harder: U.S. Latinas. For one, they’re making less in comparison to all U.S. men: In 2007, Latinas earned just 62 cents for every dollar men earned (TrinityTripod.com 2.16.10). And in Latino households, they’re responsible for more than half — 56% — of their household income (HuffingtonPost.com 2.2.10).
  • Latinas, who account for 8 million of America’s workforce, also face huge challenges in the labor market, ranging from low wages — a median of $501 per week, $50 less than black women and $150 less than white women — to severely limited access to employer-based benefits including healthcare, retirement plans and paid leave.

WHAT THIS MEANS TO BUSINESS

  • The lack of employment coupled with the inequalities in the labor market are rapidly depleting Latino families’ inroads to the middle class, leaving many Latinas to do the heavy-lifting to keep their families afloat.
  • What do Latinas really want? In these economically uncertain times, greater economic opportunity, equity and security.

RESOURCES

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Buzzworthy at the bank: A hybrid credit and debit card

thumbnailby Hans Eisenbeis

WHAT’S HAPPENING

  • When U.S. consumers swipe their debit cards, they’re typically asked to choose “credit” or “debit” for the transaction. The first requires a signature, the second a PIN, but either way the money still comes out of a savings or checking account. But what if consumers really had the option on a single card of either charging via a credit line or debiting a bank account?
  • That’s precisely what the financial services company TSYS announced in February 2010. Technically, it’s called a hybrid decoupled debit/credit card, and it would allow major Visa and Mastercard issuers, for example, to offer a debit line on a credit card.

WHAT THIS MEANS TO BUSINESS

  • Consumers have embraced debit, but many still like their credit cards — especially the awards they’ve gotten used to. Offering them the flexibility to use both on a single card could be a huge opportunity.
  • Consumers don’t always understand the behind-the-scenes complexity of electronic transfers and interchange networks, but if tweaks to these systems allow them simplicity and choice, it’s a win-win.

RESOURCES

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Thread couples online singles via mutual Facebook friends

thumbnailby Robert van Alstyne

WHAT’S HAPPENING

  • Lonely hearts looking for love online, but tired of registration-heavy dating sites and wary of total strangers, can tug on Thread for a Facebook-friend-vetted flame-finding alternative (Springwise.com 2.3.10).
  • Launched in September 2009 and currently in beta, the currently free Facebook Connect-powered service only requires users to fill out a bare-bones questionnaire to get started. Once up and running, users can easily browse other Threadsters sorted by degrees of separation from themselves.
  • If someone looks appealing, users can ask a mutual friend for an intro or be gutsy and send the possible paramour a Facebook message directly.
  • To keep any Web wooing out of the wider soc net spotlight, Thread emphasizes that site activities are never published to Facebook unless specifically requested.

WHAT THIS MEANS TO BUSINESS

  • Thread represents some of the most logical leveraging yet of Facebook’s massive pool of users. With safety and privacy increasingly top of mind for all Web-surfing consumers, an online dating solution anchored in simplicity and mutual acquaintances presents an appealing alternative to the faceless flesh-market vibe of many cyber-dating sites.

RESOURCES

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Ridesharing shifts into a new gear with RelayRides

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by Stefania Revelli

WHAT’S HAPPENING

  • Think of it as community car sharing. RelayRides is a person-to-person car-sharing-service enabling users to rent their underused vehicles to others who need a ride (Springwise.com 1.28.10).
  • Car owners simply need to register online and arrange for a keyless system to be installed in the automobile. Owners determine rental fees, locations and availability and can rate renters based on their experience.
  • Renters are pre-screened for driving records and can book the vehicle by the hour or day. Suggested hourly rates are between $6 and $12 per hour, including gas and insurance (RelayRides.com 2.10).
  • The company will launch in the Baltimore area, with plans to expand to other major cities throughout 2010.

WHAT THIS MEANS TO BUSINESS

  • As ridesharing establishes itself as a viable form of commitment-free car “ownership,” those who own but under-use are finding ways to get in on the game.
  • Sharing is saving — and nothing is seemingly off limits.
  • A community-based problem-solving approach is proving to be an efficient and savvy strategy.

RESOURCES

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SPRING CLEANING

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by Nissa Hanna

In Minneapolis, the snow is clearing and we’re starting to see the street pavement again, signaling that spring is right around the corner, and with it — spring cleaning.

According to the Soap and Detergent Association (oh yes, there is one), 68% of consumers engage in this annual effort to rid the home of winter dust and clutter buildup (SDAHQ.org 3.9.09). We’ve been tracking consumers’ online chatter around this seasonal activity and found that 48% of mentions were about organizing, 29% were about cleaning out a storage space, 12% about decluttering, 6% about cleaning the garage and 5% about donating items from around the house (Collective Intellect 1.26.10).

But this year, deep cleaning carries a deeper meaning for many consumers. The troubled economy has prompted a need for empowerment, and they’re finding that the acts of cleaning, organizing and decluttering the home can provide that much needed sense of control. In a survey of our IconoCommunitiesSM panel, 25% of respondents acknowledge that they’ve been more active and interested in cleaning their homes since the start of the recession (2.1.10).

So this spring, many consumers won’t be simply sweeping, dusting, sorting and scrubbing their way to pristine pads, they’ll be cleaning up to recover control. Businesses would be bright to scour the psychology behind the chores.

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Maya & Miguel encouraging kids to eat healthy, get active

thumbnailby Abelardo de la Peña Jr.

WHAT’S HAPPENING

  • Childhood obesity is a big problem with Latino kids: 22.1% of Mexican American boys, for example, are obese, compared to 18.5% of black boys and 17.3% of white boys (CDC.gov 10.20.09). Enter popular PBS KIDS GO animated characters Maya & Miguel, encouraging children to eat healthy and exercise.
  • Players in First Lady Michelle Obama’s Let’s Move Initiative, the cartoon siblings star in the Web-based “Take the Maya and Miguel Challenge,” which includes exercises like push-ups, sit-ups and jumping jacks; quizzes; healthy recipes; and online sports-themed games.
  • The Maya & Miguel segments were created in both English and Spanish to leverage the characters’ strong appeal to all Latino families, as well as general audiences (USAToday.com 2.10.10).

WHAT THIS MEANS TO BUSINESS

  • Latino childhood obesity is a long-term problem requiring effective strategies to engage families and communities and mobilize both the public and private sector.
  • Getting young ones interested in their health gets easier when they have role models who lead the way in a fun and interactive fashion.

RESOURCES

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Lumosity is like having a personal trainer for your mind

thumbnailby Stefania Revelli

WHAT’S HAPPENING

  • Mental workouts are proving essential to a well-balanced, whole-body fitness regimen. Brain games on Lumosity.com offer users a full, free cognitive workout in less than 10 minutes per day.
  • Designed by a team of neuroscience and cognitive psychologists from Stanford and UCSF, users can choose from several courses, comprised of 40 sessions each. Each session is made up of five games. A Basic Training course, for instance, provides a “balanced workout” of games in areas like memory, attention, speed, problem solving, flexibility and concentration.
  • Additional features include an Assessments program, which lets users evaluate and monitor their cognitive progress, and a personal profile to identify weaknesses and compare scores against others.

WHAT THIS MEANS TO BUSINESS

  • Gone are the days when cognitive exercises were synonymous with students prepping for their standardized tests. Preventative cognitive health has become a top-of-mind priority for consumers at every age, and especially among Boomers who are concerned about future cognitive decline.
  • Time and money: most common reasons for not working out. Now there’s no excuse.

RESOURCES

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Smartphones turn sleuth with new monitoring system

thumbnailby Anna Otieno

WHAT’S HAPPENING

  • Taser International, the folks who make Taser guns, now have a product targeted at parents. Fear not — this one doesn’t include electric shock. It’s a smartphone monitoring system dubbed the Protector Family Safety Program.
  • The software program includes a series of products that allow parents to monitor and control a child’s phone activities. A log of incoming and outgoing calls and text messages? Sure, but that’s amateur hour. Protector gives parents access to full voice and text conversations.
  • Inbound texts, calls and e-mails can be rerouted to the parent’s phone, at which point the parent can allow it, block it, listen-in or record.
  • The program will not work in stealth mode, so children will know if they’re being monitored.

WHAT THIS MEANS TO BUSINESS

  • With sexting and other dangerous phone activities on the rise, some parents want full reign over their child’s mobile device. But beware, super sleuths: Tweens and teens still expect a certain level of privacy — and for most, the Protector will prove too invasive.

RESOURCES

  • Protector by Taser will be available later in 2010

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