1997 Spring Issue

Organic Foods Rise In Popularity

Since 1990, the organic food industry has grown approximately 20% a year to reach $3.3 billion in 1996. Americans of all ages buy organic foods because of food safety concerns. Even convenience and snack food manufacturers now offer organic fare. When federal standards for production and labeling of these foods go into effect later this year, more consumers will learn about these products and gain new confidence in the "certified organic" label.

Internet As a Healthcare Resource

A significant number of people use the Internet as their primary resource on health and medical matters. They currently represent 38% of Internet users, a number that is expected to rise to 43% as more people find out about this source of information. These users browse health-related information, join online discussions and purchase products and services.

Luxury Items Are In Demand Again

The sale of luxury items (the most expensive items in a specific category) increased 21% from 1995 to 1996. Sharply-rising incomes of wealthy Americans, an increased number of individuals at the height of their earning years (aging baby boomers), and an upsurge in the stock market have encouraged this trend.

For example, luxury travel, where the per diem is $350 or more (excluding airfare), rose 35% from 1994. Over the last five years, per diem spending increased a total of 125%. In 1996, almost one million luxury cars (those with a price tag starting at $25,000) were sold. This number represents 11.9% of all cars sold that year as compared to 7% in 1986. Statistics also show a significant rise in high-end sales of apparel, jewelry and appliances to affluent market segments.

Consumers Will Switch Brands For a Cause

Where price and quality are equal, 76% of consumers are likely to switch to brands or retailers that support a cause in which they believe. This is up 10 points for brands and 14 points for retailers from 1993.

Cause marketing is where a company offers to contribute a specific amount of money to a designated cause when the customer buys the company's product or service. The short list of effective causes includes improving public schools, youth programs, cleaning up the environment and providing college scholarships. The environment, of prime concern to many, moved from fourth priority to second place in the last few years. 

Those most receptive to cause marketing when making a purchase are women age 18 to 49, parents of young children, and influentials. Influentials are defined as educated, upwardly mobile young professionals.

Technology Most Appreciated

Technology has made life easier for many Americans. The top five most appreciated items are:

• Microwave oven 77.3%
  
• Universal remote control 66.6%
  
• Garage-door opener 64.6%
  
• Telephone answering machine for home 61.7%
  
• Ear thermometer 59.5%
  

In a poll asking consumers what items they plan to buy next year, 25.7% said that a home computer is on their list, 12.8% expect to purchase a second VCR, and 11.8% have their eye on indoor exercise equipment.

Site-Seeing on the Internet

Bullets

• A survey shows that 51% of Americans would approve of voters using the Internet to cast election ballots if this process could be properly monitored.
• Most Americans (61%) agree that, on the whole, Americans are rude.
• Two-thirds of all pennies are not in circulation. They can be found in piggy banks, jars, wishing wells, furniture drawers, etc. Most Americans would like to remove them from circulation. However, some say this would lead to significant overcharges due to the rounding required.
• While most people appear to ignore their fellow elevator mates, 62% of adults say they quickly check out the others, 49% try to talk with them and 35% venture eye contact.
• According to the American Dietetic Association, only 75% of people ate breakfast in 1991, compared to 86% in 1965. The largest drop is among adolescents and young adults. This is a major concern since studies show that children who do not eat breakfast are less efficient at problem solving, exhibit poorer mental recall, and have difficulties with verbal fluency and controlling their attention.
• Most Americans (53%) believe that intelligent life exists somewhere is space; 35% do not.
• The U.S. Census Bureau reports that in 1994, almost one in eleven Americans was foreign born. This is nearly double the percentage in 1975 (4.8%). One-third of Americans born in another country live in California, 13% are in New York, and 9% in Florida.
• Cigar smoking was preferred by 5.8% of Americans in 1996. This is up from 3.9% the prior year.
• The majority of U.S. companies (84%) allow their employees to dress casually at least one day a week. Twenty-one percent of companies allow their employees to dress casually every day.
• The number of World Wide Web users doubled from 7% to 14% adults between September 1995 and September 1996.
• Consumers of bank services would not be happy if their bank started charging for teller visits. Four out of five of them would be at least somewhat likely to switch banks in response.
• By the year 2000, more than one-half of all vehicle sales will be for light trucks. Light trucks, which include pickups, vans and sport-utility vehicles, made up 42% of 1995 sales.