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September 14, 2011

The “average American” – facts you didn’t know

Posted by Mark under Business, Consumer research, Demographics, Economy
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By Cheryl Russell, editorial director, New Strategist Publications

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(Mark’s note: Cheryl is one smart lady and I appreciate her letting me use some of her material. I’d suggest subscribing to her blog using the link above to see all of her free information.)

It is painfully clear that the nation’s politicians and business leaders are not demographers. If they were, they would not be so far off the mark in their positions and policies, products and promotions. Simply put, they do not have a feel for the average American.

Like most of the public, politicians and business leaders get the bulk of their information about the population from television shows and news stories–a frightening thought since both grossly distort the characteristics of the average American. From reading business stories in the news, for example, you might think the average American actually owns stock (wrong) or runs a business rather than works for one.

 

There is no single source of information on the average American. To know him (or her), you have to follow the demographics. To that end, here is a sampling of just a few of the characteristics of the average American (adult) or household.

1. The average American makes $735/week.

Current Population Survey

2. The average American has $34 in his/her wallet.

Survey of Consumer Payment Choice

3. The average American spends $69 a day.

Gallup

4. The average American has a job (58%).

Bureau of Labor Statistics

 

5. The average American thinks hard work is the way to get ahead (70%).

General Social Survey

6. The average American thinks the government’s number-one priority should be to help keep and create jobs in America (51%).

Economic Mobility Project

7. The average American has employer-provided health insurance (56%).

Current Population Survey

8. The average American household spends $3,126 a year out-of-pocket on health care.

Consumer Expenditure Survey

 

9. The average American has a landline telephone (70%).

National Health Interview Survey

10. The average American has a cell phone (87%), but does not own a smart phone (only 35% own one).

National Health Interview Survey, Pew Research Center

11. The average American says the economy/jobs will be the top issue in the 2012 election (60%).

Kaiser Polls

12. The average American has less than $100,000 in savings (54%).

AARP

13. The average American does not directly own any stock. (Only 19% of households own stock directly.)

Survey of Consumer Finances

 

14. The average American household is $75,600 in debt (including the mortgage).

Survey of Consumer Finances

15. The average American has been to college (56%), but does not have a college degree.

Current Population Survey

16. The average American owns a desktop (59%) and/or laptop computer (52%).

Pew Internet & American Life Project

17. The average American used the Internet today (59%).

Pew Internet & American Life Project

18. The average American says he/she is in very good or excellent health (56%).

Behavioral Risk Factor Surveillance System

 

19. The average American is overweight (63%).

National Health Interview Survey

20. The average American eats at least two snacks a day (65%).

USDA

21. The average American drinks alcohol regularly (52%).

National Health Interview Survey

22. The average American goes to the doctor at least twice a year (65%).

National Health Interview Survey

23. The average American is taking at least one prescription drug.

Health, United States

24. The average American sometimes or often has trouble sleeping (55%).

General Social Survey

 

25. The average American is currently married (51%).

Families and Living Arrangements

26. The average American has never divorced (only 21% have ever divorced).

Survey of Income and Program Participation

27. The average American lives in one of the top 50 metropolitan areas (54%).

2010 census

28. The average American is a homeowner (65%).

2010 census

29. The average American lives in an 1,800 square foot house.

American Housing Survey

30. The average American lives in a house built before 1975.

American Housing Survey

31. The average American believes the effects of global warming have already begun or soon will (53%).

Gallup

32. The average American household is air-conditioned (87%).

American Housing Survey

33. The average American watches 2 hours and 49 minutes of television a day.

American Time Use Survey

34. The average American has two or more children (57%).

General Social Survey

35. The average American favors spanking children, if necessary (69%).

General Social Survey

36. The average American was born in-state (52%).

American Community Survey

37. The average American’s parents were born in the United States (78%)

General Social Survey

38. The average American’s grandparents (all four) were born in the United States (59%).

General Social Survey

39. The average American household owns two vehicles.

Consumer Expenditure Survey

40. The average American household owns at least one pet (62%).

American Pet Products Association

41. The average American pays his/her credit card bill in full each month (54%).

National Bureau of Economic Research

42. The average American household has a net worth of $96,000.

Survey of Consumer Finances

43. The average American believes in God without a doubt (59%).

General Social Survey

44. The average American believes in evolution (56%).

General Social Survey

45. The average American favors the death penalty (68%).

General Social Survey

46. The average American often or always recycles (64%).

General Social Survey

47. The average American wants the government to spend more on education (74%), health care (60%), and the environment (60%).

National Opinion Research Center

48. The average American is worried about being able to maintain his/her standard of living (58%).

Gallup

49. The average American believes the honesty and ethical standards of Congress are low (57%).

Sourcebook of Criminal Justice Statistics

50. The average American does not know which political party controls the House of Representatives (62%).

Pew Research Center

By Cheryl Russell, editorial director, New Strategist Publications. For more about the the average American, see the 10th edition of The American Marketplace: Demographics and Spending Patterns , available in hardcopy or as a PDF download with links to Excel files of each data table. If you have questions or comments about the above editorial, contact demographics@newstrategist.com.

 

June 27, 2011

Consumers plan to increase spending on cars, computers and furniture

Posted by Mark under Business, Consumer research, Economy, retail, Retail Trends
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Big Research finds  consumer optimism is little changed but a few category are ripe for improvement, according to recent research.

Consumers are worried about unemployment and pessimism is rising again.  Practicality in spending is the mood of the day.

Still consumers say they are preparing to increase spending in high dollar durables.

 

June 2, 2011

Real estate advertising trends – where the action is

Posted by Mark under advertising, Consumer research, Media, Real Estate
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I mentioned in my newsletter (sign up for it using the email link on this page, the service is free) that I would provide a fuller report of a real estate advertising webinar which I attended conducted by Borrell Associates. This link to Inman News provides a fine summary and is provided by a leading real estate industry  publication.

Here are some of the key findings:

  • After a decade of rapid growth real estate firms spend a greater share of their ad budget for online advertising than does any other industry.
  • The share has risen to the level where it is over-invested
  • That spending growth is now over and spending for online is expected to be stable through 2015
  • Though a more diverse mix of media is generally used by successful marketers, online will be the “premier choice for Realtors”
  • Realtors are expected to increase their spending on newspaper advertising
  • That may reflect research that found newspapers are much better (42.2%) than  direct mail (33.4%), email marketing (28%), social media (22.6%) and online ads (17%) as a source of new customers
 

May 27, 2011

The economy: What’s really going on here

Posted by Mark under Business, Consumer research, Economy, Real Estate
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John Burns, in Inman News, provides one of he most insightful looks at the current and forecast economic circumstances that I have seen, in his article, “Why isn’t housing recovering?”

John walks us through some charts illustrating the improvement in corporate profits an GDP before advising that consumer confidence at 65, is 30 points below its 44-year historical average. The meat of the article follows as he grades key economic indicators.

Inman News is a leading source of information in the real estate industry and this article is a fine example of why so many rely upon it. I recommend the few minutes it will take you to read it.

 

April 28, 2011

Mother’s Day spending to rise to $140 per person

Posted by Mark under advertising, Business, Consumer research
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This Mother’s Day, Mom’s Getting Pampered, According to NRF Survey

Washington, April 28, 2011 – Often known as the voice of reason, and even frugality, mom doesn’t expect much for Mother’s Day. But this year, her loved ones are fully intent on pampering her with some of the finer things in life. According to NRF’s 2011 Mother’s Day Consumer Intentions and Actions survey, conducted by BIGresearch, the average person celebrating the holiday is expected to spend $140.73 on gifts, up from $126.90 last year, and a return to 2008 spending levels. Total spending is expected to reach $16.3 billion.*

“This Mother’s Day, the woman who often puts herself last is being put first,” said NRF President and CEO Matthew Shay. “Americans are in a much better position to spend this year and will push the daily stresses of high gas and food costs aside for one day to celebrate the most important women in the world to them.”

This year, husbands and sons across the country plan to spoil mom a bit, as more indulgent gifts will prove the most popular. According to the survey the number of people who plan on buying electronics (13.3%) will rise 48 percent from last year (9.0%) – and they’re spending more, too. Those buying electronics will  shell out $94.91 on smartphones, cameras and even tablet devices, up eight percent from $87.70 last year.** Jewelry will also be a popular gift option for mom, with 31.2 percent of celebrants planning to buy mom silver, gold or diamonds, up 19 percent from last year. Total spending on jewelry is expected to reach $3.0 billion.

Restaurants and other businesses will also benefit from the billions of dollars that come in for one of the biggest holidays of the year. More than half (54.7%) of all celebrants will treat mom to a nice dinner or brunch, spending a total of $3.1 billion. Additionally, one-third (31.8%) of Americans will buy mom clothing or accessories ($1.3 billion total) and nearly two-thirds (64.9%) will buy mom flowers ($1.9 billion). Consumers will also shell out $1.6 billion on gift cards and $1.2 billion on personal services such as a trip to a day spa.

When it comes to where people will shop, the survey found nearly one-third (32.0%) of gift buyers will shop at a department store, the most in the survey’s history. Others will shop at discounters (29.6%), specialty stores including jewelers, florists and electronics stores (31.8%), online (21.5%) or at a specialty clothing store (7.1%).

Of the 83.1 percent celebrating Mother’s Day this year, most will shop for their mom (59.9%), while others will buy gifts for their wife (19.6%), daughter (9.6%), grandmother (8.0%), sister (8.4%), friend (7.3%) or godmother (1.8%).

“Whether it’s a special meal at her favorite restaurant or a new smartphone, families want to indulge mom this year,” said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. “As we’ve seen throughout the year, Americans will find ways to save money while at the same time splurging on the perfect gift for all the moms in their lives.”

Men will spend an average of $168.84 on the women in their life this Mother’s Day, compared to $114.01 women will spend. Additionally, adults 25-34 years old will spend the most ($191.35), followed by 18-24 year olds ($183.38) and 35-44 year olds ($155.97).

About the Survey

The NRF 2011 Mother’s Day Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the Mother’s Day holiday. The survey was conducted for NRF by BIGresearch. The poll of 8,488 consumers was conducted from April 4-12, 2011. The consumer poll has a margin of error of plus or minus 1.0 percent.

BIGresearch® consumer intelligence provides analysis of behavior in areas of products and services, ecommerce, social media, mobile, retail, financial services, automotive and media. The BIGresearch Consumer Intentions and Actions® Survey (CIATM) of 8,000+ respondents is conducted monthly and the Simultaneous Media Usage® Survey (SIMM®) of 20,000+ respondents is conducted semi-annually.

As the world’s largest retail trade association and the voice of retail worldwide, the National Retail Federation’s global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the U.S. and more than 45 countries abroad. In the U.S., NRF represents the breadth and diversity of an industry with more than 1.6 million American companies that employ nearly 25 million workers and generated 2010 sales of $2.4 trillion. www.nrf.com.

*  Total spending is extrapolation of spending of U.S. adults 18+

** Average spending includes only spending of those buying in that specific category (electronics, jewelry, etc.) The Net Average spending amount can be found in complete survey results, which is the average spending of all those celebrating Mother’s Day.

 

February 23, 2011

What will tax refunds buy? Major purchases and vacation show growth

Posted by Mark under Business, Consumer research, Economy, retail, Uncategorized
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Here is a quick post from CNBC forecasting what consumers will purchase with their tax refunds.

 

February 16, 2011

Great comparison – great recession, great depression

Posted by Mark under Business, Consumer research, Demographics, Economy
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Cheryl Russel’s work is always some of the most insightful I read. After you read through this you will want to sign up for her newsletter. and buy her books.

demographics@newstrategist.com

Score One for the Great Recession

How do you measure bad times? Specifically, how does the Great Recession compare with the Great Depression? Economists typically use GDP as the measuring stick. During the Great Depression, GDP fell by a stunning 27 percent. During the Great Recession, GDP fell only 4 percent. Using the GDP measure, then, the Great Recession was only 15 percent as severe as the Great Depression (4/27 x 100 = 15).

Something is missing from the GDP comparison, however: a human face. GDP and other macro-level economic statistics fail to capture the human experience of hard times. We need something that measures the personal dimension of economic downturns. One way to measure the personal is with the yardstick of demographic change. We can use demographic statistics–unemployment, homeownership, living arrangements, births, marriages, migration, and even death–to compare the Great Recession with the Great Depression. And we will keep score.

Unemployment

When comparing the Great Recession with the Great Depression, the unemployment rate is the Holy Grail. Unfortunately, it is not possible to directly compare the unemployment rates of the two time periods. Today, the federal government surveys an enormous sample of the population every month to determine unemployment. Not so during the Great Depression. Historians have made educated guesses about unemployment during the 1930s by subtracting estimates of the employed from estimates of the civilian labor force. The remainder is the unemployed. According to these calculations, unemployment during the Great Depression peaked at 25.2 percent in 1933.

The official unemployment rate during the Great Recession peaked at a much lower 10.1 percent in October 2009. Some say this figure does not tell the whole story because it counts as unemployed only those who have been looking for work recently. Even using the most expansive definition of unemployment, however, the rate (more…)

 

January 28, 2011

National average for college degrees is 27.5%; Douglas County at 15%

Posted by Mark under Business, Consumer research, Demographics
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Our relatively low average of college degrees is an improvement beyond where we have been but we lag national averages. The interactive graphic from the Chronicle of Higher Education shows college graduation percentages by county from across the nation and through time since the 1940s. When you consider national averages for business planning purposes it is almost always valuable to understand significant local variability.

 

December 28, 2010

Holiday sales rebound – top pre-recession numbers

Posted by Mark under Business, Consumer research, Economy, retail
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Weather may have knocked down post-Christmas sales on the East Coast but retailers are celebrating a big increase in consumer spending, according to this article in the New York Times. (Incidentally, the NYT currently requires a free registration but is reportedly moving to a paid model in the next 60 days). A 5.5% increase exceeded optimistic projections and was seen across most retail categories.

 

December 22, 2010

Cord cutters, web watchers and television

Posted by Mark under advertising, Business, Consumer research, Media
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A recent post here about people who are canceling cable service received quite a large number of visitors so here are some additional items of note from GIGAOM.com,

The first is an item entitled: It’s official now: the web now popular as TV. It reports Forester Research as finding web and television viewing time is now equal at about 13 hours per week. As we’ve earlier reported about the aging of television audiences the average time differs by age group. The 31 to 44 year-old audience, much sought after by advertisers, spends more time on the web than TV – 17 hours vs 14 hours.

A contributor to changing media consumption habits, of course, is the rise of programming via Internet. Here are three stories about Cord Cutters, those who have dropped cable: Cord Cutter Survival Stories: We’ve never been happier; Cord Cutters: Is Hulu Plus enough to replace cable; and, Cord Cutting Could Get Costly for ESPN.

 

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