The NPD Group Reports Teens Credit Word-of-Mouth Most Reliable Shopping Source

Port Washington, NY, August 13, 2012– The NPD Group, Inc., a leading market research company, released the results of a new study on shopping behaviors of teens and adults. The survey revealed that teens are persuaded by multiple factors when deciding what to purchase with word-of-mouth and brand significance topping the list.

How do teens decide what items to buy?
Word-of-Mouth 36%
Advertising 32%
Online Reviews 29%

Source: The NPD Group, Inc.

How important are brands?
Teens 4%
Average of total market surveyed 3%

Source: The NPD Group, Inc.

“In true adolescent fashion, teens continue to be influenced by their friends when it comes to trends," said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “Teenagers care 20 percent more than the average shopper about brands, most likely due to peer pressure.”

Even though shopping for brand names is more important to teenagers than it is to the average shopper, teens still search for bargains while relying on adult income and approval of purchase.

How important is price when deciding what item to buy?
Teens  42%
Average of total market surveyed  38%

Source: The NPD Group, Inc.

How do teens typically spend money?
Teens spend their own and parents’ money 71%
Teens spend their own money 18%
Teens spend parents’ money 11%

Source: The NPD Group, Inc.

“This generation of teens has grown up in a tough economic climate, so they appreciate value,” said Cohen. “With a sluggish teen job market, teens depend more than usual on their parents to buy the products they want.”  

Results indicate that brand savvy teens find more labels they desire for less at off-price retailers and outlets than at department stores and specialty retailers. If given the choice to purchase a technology or fashion item, technology will make the sale with this group.

Where do teens shop?
Off Price Retailers 32%
Outlet Stores 30%
Department Stores 28%
Specialty Retailers 28%

Source: The NPD Group, Inc.

What product would teens purchase if they had one choice for the rest of the year?
Computers 13%
Cell Phones 12%
Shoes 9%
Books 9%
Music 8%
Jeans 7%
Beauty products 4%

Source: The NPD Group, Inc.

"With the realities of the information age, teens have access to many forms of communication, challenging brands and retailers with developing strategies to drive awareness," stated Cohen. "In the 21st century, marketers need to touch all vehicles with their messages – social media, word-of-mouth marketing, and traditional advertising – to pitch a sale to teens and the other decision-makers."

 Methodology: Findings presented here are based on a poll of 1,500 adult and 1,000 teen members of The NPD Group, Inc.'s consumer panel.  The study was fielded between July 23 and August 2, 2012.

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