Age still is one of the most important demographic variables. There are statistically significant differences between three different age groups: Generation Y (18 to 29), Generation X (30 to 45), and Baby Boomers (46 to 64).
Marriages continue to occur at older ages. This is reflected in the fact that, within the Eastside, the Gen Y age group has the lowest number of married households, at 40.8 percent. In contrast, Gen X has the highest rate, at 85.1 percent. The marriage rate declines to 79.1 percent among Boomers because of dissolutions.
Ethnic groups, especially Hispanics and Asian/Pacific Islanders, are increasing among Gen Y, comprising 10.1 percent and 8.9 percent of this age group. Hispanics make up 5.7 percent of Gen X and only 2.3 percent of Boomers. There are no statistically significant differences among the three age groups.
Household income explains the classification of the three age groups. Only 7.4 percent of the Boomers earn less than $30,000 annually, compared to 15.6 percent of the Y Generation. Among the Gen X group, only 4.9 percent earn less than $30,000.
The highest modal classes for all three groups are within the $50,000 to $74,999 annual household income range. Among Boomers, 19 percent earn between $100,000 and $149,999 per household, and Gen X is nearly as high with 16.9 percent. This compares to only 5.9 percent of Gen Y. One in 10 of Gen X and Boomers earn incomes above $150,000, but only a minimal number of Gen Y members do.
Compared to other generations, Boomers are more likely to consume foods with natural ingredients and lower sugar levels, and to rate these attributes as highly important. No statistically significant difference was found toward organic foods, high protein snacks, low fat, and sodium levels. The treatment of endocrine and metabolic disorders using natural and lower sugar levels likely explains the association with age.
While there is no statistical difference among the three generations towards the importance of brands, loyalty is a very different variable. Gen Y is 31.9 percent more brand loyal than Gen X, and 21.7 percent more loyal than the Boomers. As age increases, brand loyalty declines.
In statistical research terms, understanding the consumer who drives 68 percent of the local and national economic requires not so much over-generalization or arbitrary segmentations, but rather real statistical data that explain behavior.
Boomers, Gen Y and Gen X not only show differences in averages and proportions, but also the variances within the data are different. In the statistical sconces, this is called a heteroscedastic function. What determines these differences are the unique changes of culture and response to the economy that different generations experience.
Jim Hebert is the president and founder of Hebert Research, Inc., an international real estate, land use, and statistical research firm in Bellevue.
