21 September 2009

Marketing research and NZ baby boomers

Marketing Research applications

The baby boomer cohort is too large and diverse for the New Zealand Boomer Dreams Study 2009 to be directly applicable in marketing; however this study serves as a broad brushstroke social research indicator that can be used to inform more targeted marketing research. The traditional economic model of planning for the future of baby boomers suffered from the classic downfall of placing its research ladder against the wrong wall; while much of the research was robust, working in a flawed contextual framework meant that it was misleading and inaccurate. The New Zealand Boomer Dreams Study 2009 provides a behavioural contextual framework for further, more targeted research.

Maori participation in the Baby Boom

Maori participation in the Baby Boom

Statistics New Zealand (1995) reports that Maori did not participate demographically in the post-war population boom of the 1940s and 1950s, because they were already on a steady and steep population growth path. There is also some question about whether Maori participated on the post-war period of economic plenty enjoyed by other sectors of the New Zealand community.

The Health, Work and Retirement Study (Allpass, 2008) is tracking Maori and Pacifica people and a comparative attitudinal study would inform those research findings with some insights into the motivations and intentions of these two important sectors.

Maori were underrepresented in the New Zealand Boomer Dreams Study (4.1% participation, compared to a population of 13%), and there were not enough survey respondents to compare this segment with the main sample. The survey could not be weighted to more closely represent the Maori population, because there were too many unknown characteristics that may have influenced Maori responses. Any weighting assumptions could not have taken into account the peculiar social, cultural and economic profile of Maori respondents, making any subsequent conclusions unreliable.

There is an opportunity to launch a comparative Boomer Dreams Study among Maori, to answer the research question:

Are Maori the same as other New Zealand Boomers? How do their responses to a Boomer Dreams survey compare with non-Maori New Zealand baby boomers?

While internet penetration is high among Maori (78%), the low response rate for the online New Zealand Boomer Dreams Study suggests it may not be the best way to deliver a Maori Boomer Dreams survey as it has no face-to-face or peer component to add cultural appeal.

NZ baby boomers and Generation Y

The outlook for Generation Y

Much has been written about the emerging new workforce, sometimes referred to as Generation Y. Given that the NZ Boomer Dreams Study 2009 found NZ baby boomers are similar in some respects but not the same as American baby boomers, the question arises: is the American concept of GenY valid for New Zealand?

That aside, Generation Y are the children of boomers and are the next generational cohort expected to impact on social structure (Generation X, like the Silent Generation, is a small population with indistinct social impact).

Th NZ boomer dreams study is not about Generation Y, but some observations can be made about how boomer intentions might impact on them.

The first significant finding is that New Zealand baby boomers have no intention of becoming a financial burden on them – they’re off the hook. Sadly, behind this finding is a realisation that Boomers intend the projected gap in workforce skills to be filled from their ranks, reducing the opportunity for Gen Y to springboard up into the gap without the same levels of experience or skills. This prospect has already raised resentment among some Gen Y authors, promoting “generational warfare” (Ryan, 2006) and leading to boomer bashing. However, the sheer size and force of the boomer generation is likely to see a paradigm shift in workforce and job design, with work/life balance becoming the norm in time for Gen Ys to enjoy the benefits of this work style throughout their careers.

The second significant finding is that baby boomer parents have no intention of abandoning their Gen Y offspring, and remain fiercely committed to their children’s success. Boomer parents keep their older children at home with them, with nearly 60% of boomer family households containing offspring over the age of 15. These offspring can also look forward to continued financial support from their parents, with 81% of New Zealand boomer parents intent on stepping up with their wallets, compared to just 53% of American boomers.

Limitations of the NZ Boomer Dreams Study 2009

Limitations of the NZ Boomer Dreams Study 2009

No one research study can be universal - all have limitations, and this study is no exception.

This study measures the aspirations and stated intentions of New Zealand-resident baby boomers who have access to the internet. It does not purport to represent their actual behaviours. It presents a possible picture of how the target population would like to think their future will transpire, but does not measure any potential gaps between those desires and likely actual behaviour.

Excluded from the study are New Zealand baby boomers who do not currently have internet access, who form 11.4% of the baby boomer population. This study cannot be weighted to represent non-internet users as there are too many unknown characteristics likely to affect responses (for example, the impact of income level on both internet use and retirement choices).

Maori are underrepresented in the study in numbers too small to weight and, as with non-internet users; there are too many unknown characteristics likely to affect responses (for example, the impact of cultural perspectives and priorities on retirement choices).

Excluded from the study are the views of non-resident New Zealanders, who are currently estimated to number in the hundreds of thousands – there is no research into whether any of these citizens intend returning to their country of birth after they have enjoyed careers in other countries, and what their further work/life intentions might be if they do.

Excluded from the study are the views of other New Zealanders who were not born between 1946 and 1964. There is no measurement of whether the views of New Zealand baby boomers are different from the views of the whole population, or whether they are the prevailing social views of the day, and widely shared. There is research evidence that the views of baby boomers differ from those of predecessor generations in New Zealand and there is overseas research evidence to support the view that the behaviour of baby boomers generally differs from the rest of the population, however.

Excluded from the survey are the reactions of other sectors of the population to the stated intentions of baby boomers. While many boomers say they do not want to retire in the historic meaning of that word, younger generations of workers may react adversely to any perception of older workers staying in high paying jobs or “cherry picking” the most interesting projects. There is already some intergenerational conflict developing, as evidenced by books such as “Please just f* off: it’s our turn now” (Pluto Press, 2006) by 25-year-old Australian, Heath Ryan.

NZ BOOMER DREAMS STUDY 2009 TOPLINE FINDINGS

NZ Boomer Dreams Study - Summary of Findings

New Zealand baby boomers have a distinct Antipodean character that differentiates them from other baby boomer populations, particular the American population. This finding is important because of the tendency of New Zealand planners to use plentiful American research as a proxy for New Zealand, given the dearth of social research available locally. The two populations are similar; they were after all forged in the same climate of sustained economic plenty and experienced largely the same social milestones. However, the New Zealand character is inherently different from the American character, and these differences have caused New Zealand baby boomers to react to their environment in different ways.

New Zealand baby boomers are notably “fizzier” and more physically vital and emotionally energetic than American baby boomers. They have a more outwardly focused social conscience and are less likely to pursue personal social causes to the same extent as their American counterparts. They also exhibit a greater degree of resilient optimism that has not been dented even by the 2009 economic recession that has hit their age group particularly hard.

The use of American research as proxy may explain why some policy planners, employers and recruiters (McPherson, 2008) have less favourable attitudes to New Zealand baby boomers. The American profile is more conservative, older in its attitudes, with segments that are relatively more entrenched in traditional models of pre-retirement than the New Zealand profile. The New Zealand profile is younger, more vibrant, more adventurous and searching – more like younger New Zealanders than older ones.

However both populations have much in common. Neither has any intention of retiring; both are gearing up to reinvent their lives and the concept of work (of which “job” is just a part), to their greater satisfaction. Both are on a never-ending search for meaning and self-actualisation; both want to enjoy every moment of the rest of their lives to the fullest, on their own terms; and both want to leave the world a better place when they die. But New Zealand baby boomers will do all of those things more proactively and with greater ingenuity.

The key finding of the US Boomer Dreams Study 2006 was that American baby boomers are in no mood to slow down - they want to stay involved, continue to indulge themselves and pursue their passions. They intend to remain at the centre of economic productivity and they don’t see the relevance of traditional concepts of retirement – after all, the rules don’t apply to them today any more than they ever did.

The New Zealand baby boomer study found a unique New Zealand character, but with the same intentions.

The implications for business, Government and the voluntary sector are significant. The New Zealand Boomer Dreams Study 2009 is an attitudinal marker study. Further and more pinpointed research is required to fully understand the shape and nature of the changes New Zealand baby boomers will create around them; the challenge will be, as it has always been with baby boomers, to minimise the disruption caused by their wake.

The “golden years” ideal of retirement required that older people be willing to step back and let the next generation take charge, and the next generation be able to generate enough income to pay the cost of their elders’ retirement. The conclusion of this study is that the older people in question refuse to view themselves as “old”, are entirely unwilling to step back, are not prepared to let the next generation take charge and are not relying on the next generation to generate the income required to keep their elders in the style of elder-leisure they demand. They have no intention of “sponging” on the young and expect to pay their own way all their lives.

The New Zealand Boomer Dreams Study 2009 addressed all of the research questions.

“Will New Zealand baby boomers retire gracefully at 65 to do charitable works?”
The hypothesis of this study was that, in large but not necessarily universal numbers, they will not, and the New Zealand Boomer Dreams Study 2009 has provided evidence to support this hypothesis. New Zealand baby boomers will not retire gracefully; they are not the retiring sort.

The traditional economic contextual framework that assumes baby boomers will behave largely like the generation before them and according to a historical view of retired people is inaccurate, inadequate and unhelpful. The New Zealand Boomer Dreams Study 2009 supports the view that the traditional economic model is far from the reality baby boomers intend for themselves.

Since the principal hypothesis (will they retire?) is found to be valid, a further question has arisen: “If they do not, then what?”

The hypothesis of this study was that New Zealand baby boomers would change the traditional work-life balance to enable them to “have it all” – fulfilling, meaningful work, continued affluence and leisure time to pursue their interests in family, travel and lifestyle preferences. This hypothesis is well supported by the research findings.

The second part of the principal hypothesis - will they do charitable works? – raised the question:
What are New Zealand baby boomers’ future intentions relating to voluntary participation in community activities and social causes?
New Zealand baby boomers are responsible and they will do charitable works. They do want to leave the world a better place. The answer to this question is of interest to New Zealand’s large (and expected to grow) voluntary sector, with implications for staffing, talent pool, costs and potential users of services in this sector. Changes in this sector pose consequent changes to the Government’s social planning and the provision of core social services.

This study answers the proxy question, “Are New Zealand baby boomers the same as baby boomers overseas, particularly in the USA (where research data is plentiful)?”

The hypothesis of this study was that New Zealand baby boomers are aligned with US boomers in their shared experiences of the formative events that united baby boomers as a generational cohort, such as a common sustained period of unbridled economic growth leading to the development of a culture of affluence. However, it was posited that there may well be cultural differences that separate the different populations. This was found to be the case, and should influence how much and in what ways we can continue to use overseas research as a proxy for predicting New Zealand baby boomer behaviour. This hypothesis was tested through the use of a comparative study; the New Zealand Boomer Dreams Study 2009 being substantially comparable to the US Boomer Dreams Study 2006.

The summary finding is that New Zealand baby boomers are not the same as their American counterparts. They are similar in many respects, but they should be viewed independently or risk disadvantaging them and planning for the wrong outcomes.

Can American (in particular) research be used as a proxy in the absence of New Zealand research?

No, it should not. Failure to date to develop local attitudinal research in this area demonstrates either intellectual laziness or bureaucratic complacency and, in either case, a lack of foresight. The baby boomers have had a marked impact on New Zealand society across every life stage they have been through, yet planners have consistently failed to plan for the disruption their passing causes; if we do not want to end up in prefabricated rest homes and dying in prefabricated cemeteries, we need to predict with greater insight what boomers will do next.

NZ Boomers, their children and grandchildren

New Zealand baby boomers, their children and grandchildren

Thirty-eight percent of NZ baby boomers surveyed in the NZ Boomers Dreams Study 2009 were empty-nesters (couples whose children had left home) and 36% had children still living at home.

Of the 36% who said they had children at home, almost 60% (59.4%) of those households were comprised of older children (15 and over).

As a result of younger baby boomers delaying parenthood and an increase in divorce and second families, 3.6% of the children of New Zealand baby boomers are still pre-school age and 37% of boomers’ children are still at primary or secondary school.

Boomers’ babies continue to live in traditional households (88.9%) and can look forward to the ongoing financial support of their parents (80.8%, compared with 52.7% of US boomers).

Unlike the US, where 80% of boomer parents report they would like to focus more of their time and energy on their grandchildren, New Zealand baby boomer parents are no more likely than average boomers to want to be more involved than they currently are. It is not clear whether New Zealand boomers (45.6% less likely than US boomer parents to plan to spend more time with grandchildren) feel they already do spend sufficient time, whether New Zealand boomer grandparents are less involved than their American counterparts, or whether New Zealand baby boomer families have not yet progressed to grandparentage to the same levels as in the US. Younger New Zealand boomers are 6.2% more likely than their elders to have future plans for their grandchildren, but given the number of them with children still at home, having grandchildren may be a future aspiration rather than a current reality. In contrast, the aspiration to spend more time with family (children and grandchildren not differentiated) rated 5.9% higher among New Zealand boomer respondents than their American counterparts. This suggests the New Zealand baby boomer population isn’t finished with its children yet, and has yet to move on to grandchildren.

There is no conclusive evidence from the study to explain the disparity between US and New Zealand boomer grandparents’ devotion to future family generations, but the implications for business may mean an expected burgeoning of intergenerational entertainment industries (matinee theatre outings, shared holidays, indulgent toy purchasing) may not be replicated here. Businesses working in this area may find value in exploring this aspect of New Zealand boomer dreams in more depth.

NZ baby boomers and volunteering

What are New Zealand baby boomers’ future intentions relating to voluntary participation in community activities and social causes?

Three-quarters of New Zealand baby boomers agree that if they are doing something they love, it doesn’t matter whether they get paid for it, while nearly two-thirds agree that they don’t have to have a job to feel good about themselves. This suggests they distinguish between the two and do not necessarily need to be tied to the workplace to meet their “meaning” needs. This is good news for the voluntary sector, which can tap into the New Zealand baby boomer thirst for purposeful endeavour, even without the money to pay them. Provided community organisations can deliver the opportunities to learn, grow and enhance the need baby boomers have to continue to matter, they will attract a large pool of talented and experienced volunteers.

Implications for the voluntary sector
Conventional wisdom suggests that if baby boomers do not retire in the traditional sense, they will have less time available to contribute to volunteering.

Maire Dwyer (2006) theorised that increased labour force participation by middle-aged women might reduce the supply of volunteers, due to more baby boomer women participating in the workforce than their predecessors, but that a greater capacity of “larger, healthier and better educated young-olds” might boost the skills and energy of the volunteer populations. The findings of the New Zealand Boomer Dreams Study 2009 support that view.

The strong sense of responsibility felt by New Zealand baby boomers and their attitudes to vitality and work life balance mean that they will have time and energy that they are willing to contribute, and perhaps more significantly, high levels of expertise.

New Zealand baby boomers almost universally champion the obligation of responsibility over the assertion of personal rights. As a result, they are much less likely to get involved in politics or social causes that matter to them personally, and more likely to be interested in environmental issues (60%); in working to make the community a better place (70%); and giving more time (56%) or money (42%) to charity.

The next 40 years will present challenges and opportunities for the voluntary sector. They can expect an influx of committed baby boomer volunteers, but they should expect those volunteers to be as demanding, challenging and disruptive to the established way of doing things as this study has revealed in the New Zealand baby boomer character.

Dwyer (2006) posits that there will also be increased demand for volunteers to organise activities geared to the healthier, better educated baby boomers in search of leisure adventures. The findings of the New Zealand Boomer Dreams Study 2009 support that view and suggest it will be other baby boomers who will fill these roles.

The good news is that while disruption is uncomfortable, it will breathe fresh life and new vigour into the voluntary sector.

This is the age when kaumatuatanga (the role and place of the respected, responsible elder generation) will come to the fore. Visionary service sector leaders can start planning to harness the potential of this new generation of volunteer workers, mentors and leaders.

The other significant implication for the voluntary sector is the need to recognise the fiercely independent and self-reliant streak in New Zealand baby boomers. Accustomed to forging their own path and taking responsibility for themselves all of their lives, they are less likely than their predecessor generation to ask for help when they need it, or accept help when it is offered. Social services providing assistance to the aged will need to develop strategies to connect with the ageing character of this ageless generation when they finally have to accept that life is no longer a set of endless opportunities, at least for them (and currently 92% of them are not prepared to entertain that notion).

Rather than planning for the provision of services to the elderly from 65 to 85, services in the voluntary sector for the aged should plan for their clients to come to them later and perhaps for shorter periods of time, premised on the idea that New Zealand baby boomers will keep themselves healthy for as long as possible, followed by a more rapid decline, rather than a lengthy period of inactivity and a long decline into old age.