Boomers not so loyal to brands as once thought

Recent research is debunking one of the long-held beliefs of marketers about brand preferences and brand loyalty, particularly among so-called "baby boomers". A story in MediaDaily News by Eric Sass points out that boomers are less brand-loyal than preceding generations, according to a study to a study released this week by market-research firm Focalyst, a joint venture between AARP and the Kantar Group.

The research (somewhat self-serving given that it is run by an organization representing and publishing to older persons) is important because it undermines one of the cherished beliefs of marketers that you've got to get 'em when they're young and before they get set in their ways. In fact, anecdotal evidence has long been that boomers, with lots of disposable and discretionary income and the leisure to pursue their passions, can be influenced by carefully crafted advertising.

The study drew on a panel of about 35,000 consumers over the age of 42. It found that, while advertisers have long held the belief that they have to get the 18-34 demographic because that's when brand loyalties are formed, it's not the case and, anyway, it depends on the goods or services that are being talked about.

In April 2006, an article titled "Brand Purchasing by Older Consumers"* published in Marketing Letters, an academic journal, found that "patterns of buying between brands within a product category do not reveal marked age-based differences, and leading brands tend to be leading for all age groups."

Brand loyalty among boomers in the Focalyst study is higher for service-oriented brands, like insurance and banking, and significantly lower for product-oriented brands.

Heather Stern, Focalyst's director of marketing, remarked: "Boomers are most loyal when companies give customized service, a natural reflection of boomers' desire for personalized attention and rewarding brand experiences." They are also willing to pay more if a product or service makes their busy lives easier. "For consumer categories such as home appliances, computers and televisions that score low on brand loyalty, marketers may be able to develop stronger bonds with boomers," says Stern.

Now, if magazines and other media could only get the media buyers to read the research and understand that boomers not only have money to spend, but can change their minds on brands (and do).

[*The article can be purchased for US$32.]