Baby Boomers, Cargo Demands

However, since they already have enough housing, cars, and clothing to satisfy what they need, they possess the power to withhold spending until brands deliver precisely on what they want as customers-a far cry from a decade ago when they were still paying for homes, cars, and educations. Today, the purchasing power of this group makes brand managers salivate because the likelihood of converting interest or preference into sale is higher among boomers than any other demographic segment.

Boomers significantly influence the consumption preferences of many products; hence, the recent resurgence of classic rock and bands such as Led Zeppelin and the Eagles. Just as music migrates as boomers move through different life stages, so also have other products followed this trend, with automobiles providing perhaps the most observable example. The 1980s were all about minivans; their personality defined baby boomers’ needs for maximum capacity and flexibility to transport a cargo of kids. In the 1990s, however, cargo demands diminished and road dominance increased, leaving the SUV as the product of preference for baby boomers. In the 2000s, the personality of the auto industry reflects boomers’ need for fewer seats but more experience-and sporty convertibles fit the bill well.

Baby boomers will affect demand for products and services and provide growth opportunities for manufacturers, retailers, and service providers that understand the types of projected changes highlighted in Box 8.1.

The market power of baby boomers is undeniable. The strategies and nuances that have translated into bands’ long term dominance focus on staying in tune with baby boomers, who today represent an increasing proportion of music industry sales. Their most effective musical spokespersons are themselves baby boomers, and since these bands are part of this segment, relating to them is easier than for younger bands. Staying connected to them is challenging, but here are some of the ways they do it.