Gen-Xers practicing frugal ways – overall Consumer Sentiment more Positive. [INSIGHT]

Generation X, those born after the post World War II baby boomers, generally has a positive outlook on the economy, but that doesn’t mean they are free spenders. In fact, they are more frugal than baby boomers and seniors, according to SymphonyIRI’s Q3 2012 MarketPulse. On the surface, it may seem Gen-Xers have more in common with boomers, but the reality is that they share many of the same penny-pitching, tech-savvy traits of millennials. In addition, SymphonyIRI is releasing the latest results from its Shopper Sentiment Index, which finds that, in general, U.S. consumers have been demonstrating an increasingly positive financial outlook during the third quarter.

“From seniors and millennials to Hispanics and moms, our MarketPulse survey has allowed us to examine a vast array of critical consumer segments during the last year,” says Susan Viamari, editor of Times & Trends, SymphonyIRI. “Now, we are filling in another piece of CPG marketers’ consumer puzzle by checking the pulse of Gen-Xers with our latest survey. Sandwiched between baby boomers and millennials, Gen-Xers are aged 35 to 44 and are sometimes referred to as the ‘ignored generation.’ However, these consumers have well-established careers and families, and their spending power should not be overlooked by CPG retailers and manufacturers.”

Cheap but Cheerful

Gen-Xers were graduating from college and entering the adult world after the 1987 stock market crash and the recession that followed, so many were left jobless and moved in with their parents. This somewhat “bleak inheritance” shaped their future financial attitudes and shopping behaviors much like The Great Recession has influenced millennials.

Even though Gen-Xers are more financially optimistic versus the average shopper—24 percent think their financial situation has improved during the last 12 months, and 37 percent feel their finances will improve during the coming year—this generation is very cost conscious and careful about their purchases. According to MarketPulse survey results of Gen-Xers:

37 percent buy brands that are on sale rather than their preferred brands versus 45 percent of millennials, 27 percent of boomers and 22 percent of seniors

32 percent select products to create more meals at the lowest cost possible versus 39 percent of millennials, 27 percent of boomers and 19 percent of seniors

33 percent choose products based on loyalty card discounts versus 35 percent of millennials, 25 percent of boomers and 16 percent of seniors

20 percent steer clear of certain aisles to avoid unplanned purchases versus 22 percent of millennials, 15 percent of boomers and 11 percent of seniors

Of course, it takes some planning and forethought to save a buck, so Gen-Xers also do their homework before heading to the store. A whopping 69 percent make shopping lists and use a variety of tools in their list-making process: 49 percent review circulars, 48 percent use coupons, 14 percent leverage the Internet, and 10 percent refer to a retailer’s website. When it comes to list making, Gen-Xers’ coupon, Internet and retailer website usage is comparable to millennials and higher than boomers and seniors.

From Slackers to Tech Leaders

Generation Y, or millennials, are often touted as the most tech-savvy generation, but Generation X is actually right on par with millennials and much more “wired” versus boomers and seniors in a number of ways when it comes to CPG-related behaviors:

55 percent of Gen-Xers download recipes off websites and other online sources

52 percent download coupons from manufacturer websites

51 percent download coupons from retailer websites

51 percent download coupons from couponing sites, such as SmartSource

38 percent research products online

35 percent visit deal sites, such as Woot and Groupon

31 percent use social media sites, such as Twitter and Facebook, to get coupons

23 percent look for updates from retailers/manufacturers via email/text message

18 percent research products on blogs

7 percent purchase groceries online and have them delivered

For more information at http://www.SymphonyIRI.com