Challenging Popular Myths about Who Controls Household Spending

Who controls more consumer household spending ... women or men?
Who controls consumer household spending? Women ... men ... or both?
Among the “everyone knows” factoids in marketing, it’s accepted pretty much without question that women are the purchasing decision-makers in households far more than men. Whether it’s decisions on consumer spending or healthcare services … women are much more likely to be making those decisions compared to men.

And the figure commonly cited? Women are responsible for ~80% of the decisions. But how accurate is this … or is it time to reconsider this notion?

A survey conducted last year of ~4,000 Americans age 16 and older by The Futures Company, a London-based marketing consulting firm, found that ~37% of women claimed they have primary responsibility for shopping decisions in their household, while ~85% claimed they have primary or shared responsibility.

And the figures for the male respondents in this survey? Substantially the same, it turns out: 31% claimed they have primary shopping responsibility and 84% claimed that the responsibility is shared.

Emily Parenti, marketing director at Futures, concluded that the survey results “tell a different story” than the common perception of how much women control the purse-strings in households.

Indeed, the Futures survey is one of the first ones that actually goes so far as to quantify the issue. Ira Mayer, president of EPM Communications which publishes the newsletter Marketing to Women, has attempted to find the origin of the accepted 80% figure – but has come up empty.

“There is never any sourcing of the number,” Mayer says. And yet, “it’s become accepted folklore.”

When challenged to cite corroboration, students of marketing point to the book Marketing to Women, published in 2002 by Marti Barletta, wherein the claim is made that women “handle 80% to 90% of spending and purchasing for the household.”

And yet … Barletta has never been able to cite the source for this claim, either. Instead, she considers it “one of those rules-of-thumb numbers that everyone in the industry uses.”

Perhaps marketers need to take a look at this rule-of-thumb again. Because in addition to the Futures survey, a 2008 online research survey conducted by Boston Consulting Group asked women and men to estimate what percentage of household spending they influence or control.

True to form, the average answer given by women in the BCG survey was 73%. But the average answer given by men was 61%.

So in essence, both genders are claiming responsibility for a controlling or influence more than 50% of the spending in their household.

This points to a difference in perspective that likely won’t be going away anytime soon. Indeed, Marti Barletta still claims to be “pretty comfortable” with the 80% figure for female control over household spending. “Even being conservative, I wouldn’t go below 75%,” she asserts.

Whatever the correct figure actually is, one thing we can be certain of is that the notion of women having overwhelming control of household spending is off-base. And so, consumer product manufacturers would be wise to recalibrate their thinking as they engage in their product development and marketing activities and programs.

Outdoor advertising that’s really “out” there.

Adzookie House
Adding a lot of class to the neighborhood: Adzookie puts the "outré" in outdoor advertising.
There’s an interesting story that’s been swirling around the past few days about out-of-home advertising. Evidently, mobile ad network firm Adzookie is on the prowl for using someone’s house as an advertising placard.

As in “the entire house.” Or nearly all of it; Adzookie plans to place its logo, marketing messages and social media icons along with highly visible hues on every inch of surface save the rooftop, windows and awnings.

And what’s in it for the homeowner? Adzookie is claiming it will pay the mortgage on each house it selects for the honors.

Already, well over 1,000 applications from property owners have been received. The vast majority involve houses, but there are also restaurants, other businesses, and even a house of worship that have been submitted. You can click over to Adzookie’s Facebook page to view many of the pictures and pitches received.

How will Adzookie make its decision? Key, of course, will be traffic density; homes in sleepy sub-divisions or cul-de-sacs won’t have much of a chance. Then there’s also the issue of restrictive homeowner associations or the howls of protestation over “eye pollution” from nearby neighbors. That’ll knock quite a few more out of contention.

But here’s another tidbit that may turn out to be a deal-breaker for most of the remaining applications: CNNMoney magazine is reporting that Adzookie’s budget for the entire program is only ~$100,000 … and that includes the cost of painting the home(s) in question.

Even in this depressed real estate market, there aren’t too many houses that have a mortgage that low – unless you’re talking about a home in the City of Detroit, perhaps.

This capricious initiative proves yet again that in today’s world of advertising and promotion, pretty much anything goes. And if the idea is quirky enough, it’ll generate publicity in and of itself – thereby helping to bring about the desired awareness and interest even before the first slaps of the paintbrush ever hit the house.

Good going, Adzookie.

E-mail early birds? The worm may be turning differently.

Best time to deploy marketing e-mail messages.One of the great benefits of the “online everything” world in which we now live is the ability to evaluate nearly anything about marketing not with hunches or speculation, but with hard data.

A perennial question is what time of day is best to deploy marketing e-mails to customers and prospects. The higher the propensity to open and read these messages, you’re closer to the goal of converting eyeballs to clickthroughs … and to sales.

ReachMail, a Chicago-based e-mail service provider, recently studied a large sampling (~650,000) of the millions of consumer and business marketing e-mail messages it sends out for clients daily in order to determine open rate differences based on the time of day. It normalized the data to account for different time zones.

What ReachMail found was that there are differing peak open rate times on weekends versus on weekdays:

 Weekdays: Peak e-mail open rates are between ~11:30 am and ~2:00 pm.

 Weekends: E-mail open rates begin trending upward at ~11:30 am, but don’t peak until ~4:00 pm.

John Murphy, ReachMail’s president, had this to say about people’s weekday e-mail open rate behaviors: “You would think it would spike in the morning, but they’re looking at work e-mails in the morning. Once they’ve cleared out their inbox, they’re looking at marketing e-mails in the afternoon.”

ReachMail’s conclusion: It’s best to deploy weekday e-mails between 10:00 am and Noon. For weekend e-mails, deploy them between Noon and 3:00 pm.

And this additional tidbit also: Don’t assume e-mails sent during the week will perform better than those deployed over the weekend. “People’s engagement rates are up there on the weekend,” Murphy maintains. “It’s our habit of checking e-mail all the time.”

He’s sure right about that.

Marketing slogans: “New” isn’t necessarily “improved.”

Pork.  Be inspired.
Hardly inspiring: The National Pork Board's new marketing slogan has little chance of matching the effectiveness of the one it's replacing: "Pork: The Other White Meat."
When you decide to ditch a successful marketing slogan after nearly 25 years, you’d better have a very good reason. Because that’s what’s happening with the National Pork Board, which announced last week that it is retiring its promotional tagline Pork: The Other White Meat.

According to statistics reported by the industry organization, annual per capita pork consumption in the United States has remained essentially flat at ~50 pounds in recent years, while annual beef consumption has declined to ~61 pounds and chicken has risen to ~80 pounds.

The Pork Board determined that the best to way achieve new growth would be to convince people who already eat pork to consume more of it, rather than to continue trying to encourage other consumers to shift to pork.

Ceci Snyder, vice president of marketing for the National Pork Board, said this: “We want to increase pork sales by 10% by 2014. To do that, we needed to make a stronger connection – a more emotional connection to our product.”

This kind of strategy may make sense in that ~28% of American households represent nearly 70% of the total at-home consumption of fresh pork products. And it’s probably true that these people don’t need to be continually reminded of the “healthy” characteristics of pork via the “Other White Meat” slogan.

But retiring a marketing theme is one thing … and coming up with a compelling slogan to replace it is quite another.

And the one that is being debuted strikes me as a poor substitute. Are you ready to hear what it is? Drum-roll please …

“Pork. Be inspired.”

Excuse, me, but this is about as inspiring as reading the pages of the Des Moines telephone directory.

I have no doubt that the Pork Board focus group-tested this new message, and it probably came out with no posted negatives. After all, who could object to this innocuous little slogan?

But here’s a problem: It says almost nothing to anyone. If I’m a pork lover, how is this slogan supposed to make me any more inspired than I was before about preparing pork recipes? And it I’m someone who doesn’t eat pork – or eats it only infrequently – what does this tagline do to encourage me to take fresh look at this meat?

In my view, “The Other White Meat” positioning communicated so much more, not least in that there was a “health” component to the slogan. The message of healthy eating has become more important in recent years rather than less, and the beauty of that tagline is that it speaks strongly to pork consumers and non-consumers alike.

Any time your marketing slogan can speak powerfully to multiple audiences, you’ve got a winner.

And here’s another thing: All of the Pork Board’s energy and resources that have gone into publicizing “The Other White Meat” over the past two decades have resulted in a recognition of “health parity” between pork and chicken in the minds of consumers.

Consumer field research has shown that, thanks to the marketing efforts of the pork industry, ~80% of American consumers today associate “the other white meat” with pork. Retiring the slogan now will only mean a slow degradation of that association over time.

This seems like tossing a whole lot of goodwill into the trash can.

The National Pork Board reports that it will be plowing more than $11 million into an advertising campaign to roll out its new marketing slogan, beginning this month. I’m sure they have every intention of scoring the same success now as they achieved with “The Other White Meat” before.

Unfortunately, it may not matter how much money there is available to throw at the campaign. The best measure of how successful it’ll be is in the inherent compelling power of the theme.

“Pork. Be inspired.” doesn’t do it … on any level I can think of.

Memo to the marketing folks at the Pork Board: Forget the beaucoup bucks you’ve already expended developing this bowser of a slogan. Instead, troll around online and see some of the alternative taglines “Joe and Jane Consumer” have come up with. The Los Angeles Times, for one, invited their readers to submit alternative ideas. I particularly like one that came from Jacqueline Ochsner, a reader from Santa Monica, California: “Pork: The better white meat.”

Not only is that slogan a better one, it was offered up free of charge!

Signs of the Times

Divine, aka Harris Glenn MilsteadIt absolutely had to happen.

Reports from Japan are that facial-recognition technology is now being incorporated into mall signage wherein the age and gender of passersby are discerned before displaying “demographic appropriate” advertisements to them as they walk by.

NEC, a multinational electronics firm, is experimenting with biometric technology. the ability to scan faces to detect gender and age within a range of 10 years. Not only is the technology being tested in mall signage, but also in vending machinery where “helpful suggestions” will be made to consumers based on their presumed age and gender.

And of course, Japan today means the U.S. tomorrow. In fact, other companies are already testing “gender-aware” technology for outdoor billboards and mall signage here in the United States. Intel has partnered with Microsoft in such an endeavor to design the Intel Intelligent Digital Signage Concept.

Joe Jensen, a manager at Intel’s Embedded Computing Division, sums it up like this: “As stores seek more competitive advantages over online retailers, digital signage has become a valuable technology for dispersing targeted and interactive content to shoppers.”

If gender-aware technology proves to be effective, does this mean that gin & tonics will be now offered to older consumers? At the end of a long day at the office, that could be a tantalizing option for businesspeople hitting Grand Central Station to catch the Long Island Railway home.

Or consider this picture: Legions of “Divine” impersonators (see above) descending upon malls or food kiosks, just to test how well the signage and vending machines can determine true age and gender!

Kidding aside, it’s really no surprise that digital technology with its ability to serve highly targeted, relevant content would eventually work its way into billboards and signage, historically the most “mass” of mass communications. Marketers crave statistical results, and they’re naturally going to gravitate to anything that provides those metrics – no matter how imprecise they might be.