Seizing the Future Women Charting the Course Ahead …

Across Generations and Around the World

Today’s women continue to set the agendas in households and businesses around the world. In a continued effort to conduct the definitive study of women, FleishmanHillard and Hearst Corporation commissioned Ipsos MediaCT to conduct this fifth wave of Women, Power & Money.

Women, Power & Money: Wave 5

A Study of Women’s Lives, Lifestyles and Marketplace Impact

Published July 2013

2

Table of Contents

Executive Summary ............................................................................................................. 3

Methodology: Global Qualitative and Quantitative Approaches ........................................ 4

She Increasingly Looks to the Future as Economic Anxiety Eases ...................................... 5

Her Identity Evolves as She Continues Growing Into Leadership Roles .............................. 6

Generational Evolution: Gen Y Women Feeling Potential and Pressure ............................ 7

She is on a Long-Term Path Toward Achieving Her Goals ................................................... 8

Men – and Gen Y Women – Perceive a More “Gender-Equal” World ................................ 9

Wives and Husbands: Inequality and Differing Perceptions in the Household ................. 10

She is Value-Oriented, Yet Satisfied in the Marketplace................................................... 11

“Option Overwhelm” Widespread and Growing............................................................... 12

She has a Rich, Multidimensional Perspective on Brands ................................................. 13

She Seeks Reliable, “Solid” Brands .................................................................................... 14

She is Open to New Brands Across Categories .................................................................. 15

She Samples Many Information Sources When Choosing Brands .................................... 16

Key Segments: Hispanic and African-American Women ................................................... 17

Key Segments: Affluent Women ....................................................................................... 18

Women’s Lives: National Variations on Global Themes ................................................... 19

Gen Y and the Emergence of a Global Generation of Women ......................................... 20

Women, Power & Money: Key Contributors ..................................................................... 21

3

The fifth wave of Women, Power & Money finds the American woman feeling increasingly independent, knowledgeable and successful … With economic anxiety easing, she also brings a sharper, more strategic focus on the future …

Gen Y women feel particularly smart and successful, but also stressed and exhausted … Gen Y is a truly global generation of women, with perspectives and marketplace preferences that transcend borders and cultures.

Executive Summary The fifth wave of Women, Power & Money finds the American woman feeling increasingly independent, knowledgeable and successful as she continues growing into her leadership roles in the home, marketplace and workplace. With economic anxiety easing, she also brings a sharper, more strategic focus on her future and that of her family. Despite great strides, she still lags in pay and comfort in salary negotiations;

moreover, there are radically differing perceptions of financial responsibility between her and her spouse. In a sense, these financial issues lie at the intersection of women, power and money, and reflect the last great bastions of gender inequality.

In the marketplace, she dominates day-to-day spending, and shares responsibility for big-ticket purchases. She brings a value-

orientation, a preference for solid brands, and a tremendous openness to new brands across categories, even when she is relatively satisfied with her existing choices. Her marketplace frustrations lie, not so much with the products or services she uses, but more with “option overwhelm” and channel frustrations more generally, placing the onus on brands to create simple, consistent and compelling product offerings and communications. She lives in a multichannel world, and so must brands. She seeks many sources of information in evaluating brands, and brands therefore must strive for multiplatform message exposure, while communicating consistent messages and imagery across platforms.

Throughout our data, and throughout the world, generational differences are profound. Boomer women, for example, perceive more differences between men and women and are more swayed by messages related to values and corporate social responsibility. Gen Xer women are solidly in the lifestage of family formation, and the associated trade-offs hamper her satisfaction with life more generally. She also brings a more financially constrained and price-conscious (if less satisfying) approach to the marketplace. The most distinctive profile belongs to Gen Y women. She feels smart and successful, but also stressed and exhausted. She sees more equality between women and men; she feels the potential and the pressure of growing up in a world of supposed equal opportunity, but which in fact presents a truly uphill climb to achieve equal results.

Gen Y is also a truly global generation of women, with perspectives and marketplace preferences that transcend borders and cultures, shaped by shared experiences of technology, social media, emerging brands and the cultural narrative that preached “girls can do anything boys can do.”

4

Wave 5 Methodology: Global Qualitative and Quantitative Approaches

Wave 5 of Women, Power & Money uses qualitative and quantitative research to explore the lives of women in five countries, that was conducted in three phases.

First, exploratory qualitative research was conducted with the Ipsos HearWatchSay research community, allowing women and men to describe, in their own words, how they feel about gender relations, marketplace experiences and the future.

Second, 20-minute online interviews were conducted in February 2013 with 1,008 U.S. women and (for comparison purposes) 503 U.S. men. Respondents were aged 21 to 69, with annual household incomes of at least $25,000, reflecting a population of more than 78 million women in the U.S. Wave 5 marks the first international wave of Women, Power & Money, with at least 750 interviews with women in the U.K., France, Germany and China. In total, more than 4,500 interviews were conducted. The survey explored broad attitudes as well as detailed information about marketplace preferences and decision-making in 12 categories.

Finally, one-on-one in-depth interviews were conducted with a small number of women in the U.S. and around the world, designed to layer qualitative richness on top of rigorous quantitative conclusions.

This white paper focuses primarily on U.S. women, and unless otherwise noted, data is from U.S. women. Note also that generations are defined as: Gen Y, age 21-34; Gen X, 35-49; Boomers, 50-69.

Looking Back: Key Findings from Previous Waves of Women, Power & Money

Wave Key Take-Aways Key Data Points

Wave 1 August – early September 2008

Women firmly in control as the explicit or implicit CEO, COO, CPO and CFO of most American households. She leads with her distinct voice and consensus-oriented style; she is not “the new man.”

91% agree, “I am the manager for the quality of my family’s life”

79% agree, “In the end, my opinion determines family financial decisions”

Wave 2 November 2008

Women’s leadership intensified during the financial upheaval of late September and October 2008; her pragmatic approach to brands and finances fit the new marketplace zeitgeist; her priorities became the de facto priorities for the marketplace as a whole.

87% agree, “I am more thoughtful than ever before about every purchase I make”

86% agree, “I usually wait for something to go on sale before buying”

Wave 3 January 2010

Emotional reverberations of The Great Recession – she became more resourceful, more confident and happier as her family pulled closer together.

81% felt their family had drawn closer together as a result of the economy

68% felt happy, up from 61% in Wave 1

Wave 4 September 2011

With the “new normal” of economic concern settling in, she is increasingly a game-changer in the marketplace, spreading word of mouth through expanding spheres of influence.

54% agree, “I feel it is my responsibility to help friends and family make smart purchase decisions”

42% agree, “I regularly influence friends and family to buy or not buy a particular product or service”

5

She Increasingly Looks to the Future as Economic Anxiety Eases The social and marketplace changes evident in Wave 5 take place against the backdrop of easing economic anxiety. For example, 47 percent of American women agree, “Financially, I am worse off now than I was before the recession started” – still substantial in absolute terms, but down significantly from Wave 4’s 58 percent.

Wave 4 found her primary concerns to be the economy in general, and household budgets in particular. With Wave 5, these macro- and micro-economic concerns have taken a back seat to more emotionally-pressing personal concerns such as “your child’s future.” Simply put, as economic concerns lessen, she increasingly looks toward the future – gaining traction toward a longer-term, more meaningful strategic vision for self, family and business. Short-term goals – such as greater fitness, community involvement or personal development – are chosen in part for their broader impact on, and ability to facilitate, her broader life satisfaction and vision of her future.

The bottom line: More than ever, brands can no longer rely on understanding what she wants today. They must understand and facilitate her aspirations for her (and her family’s) future.

Top Concerns Among U.S. Women

Wave 4 (Sept. 2011)

1. The economy

2. Your household’s budget

3. Your child’s future

Wave 5 (Feb. 2013)

1. Your child’s future

2t. The economy

2t. Your household’s budget

t = tied

In five years: “I want to look at myself and think, ‘Wow, I've sure come a long way in five years!’ I hope that I'm a better, wiser, deeper person than I am right now.” Sophia, age 25

Top priorities: “My biggest goal is to provide a comfortable and good life for my daughter, and making sure she grows into a responsible, independent and compassionate individual.” Kayla, age 24

In five years: “I want my children to be healthy, successful and on their own. I'd like for my husband and myself to be planning the ‘what’ and ‘when’ of our retirement.” Pam, age 49

Short-term goals: “Being more involved in the community is a passion of mine … and I finally feel like I've discovered the resources to be able to do that. It makes me feel more fulfilled in all aspects of life, knowing that I've got a bigger purpose ... Also, definitely getting/staying in shape. For years I knew I had potential to be in good shape … now I’m finally seeing the results I knew I had in me.” April, age 32

April, age 32

The American Woman on … Her Future

(representative answers)

6

Her Identity Evolves as She Continues Growing Into Leadership Roles She continues growing confidently into greater leadership responsibilities within her various roles, including wife (75 percent are married or partnered), mother (68 percent have children) and employee (65 percent work full- or part-time).

As in previous waves of Women, Power & Money, she is most likely to describe herself with terms such as trustworthy, caring, friendly, thoughtful and helpful. Clearly, she has not undergone a wholesale change in self-concept, and the easing economic concerns are likely at play in the growing number of women feeling successful and the declining number feeling stressed.

Perhaps most telling are the trends that reflect her growing comfort and confidence in leadership, while staying fundamentally in touch with her identity and preferred interpersonal styles. For example:

The strongest growth is seen in terms of reflecting confidence and competence – nearly two-thirds now describe themselves as independent and knowledgeable.

Terms suggesting a “harder edge,” such as ambitious and decisive, saw significant growth from Wave 3 to Wave 4, but only directional increases in Wave 5, and remain characteristic of only about one-in-four.

She hasn’t abandoned her identity, but trade-offs are evident nevertheless, evidenced by the declining prevalence of kind and family-focused. These suggest a firmer stance, and may be required trade-offs from enhanced leadership, or simply the feeling that too much kindness doesn’t pay in today’s world.

Men show subtle signs of struggling with the continued rise of women. While women are feeling more knowledgeable, men are feeling less so (as well as less thoughtful and decisive). And while women increasingly feel successful, men show no such increase.

% describing themselves as …

Women Men

Trustworthy 78% 65%

Caring 76% 49%

Friendly 72% 62%

Thoughtful 72% 50%↓

Helpful 68% 54%

Kind 68%↓ 52%

Practical 68% 56%

Family-focused 65%↓ 48%

Intelligent 64% 59%

Independent 63%↑ 51%

Realistic 63% 60%

Knowledgeable 62%↑ 59%↓

Smart 62% 55%

Happy 59% 46%

Generous 54% 40%

Successful 32%↑ 28%

Stressed 31%↓ 20%↓

Ambitious 26% 26%

Decisive 26% 24%↓

Arrows denotes change of at least 5 percentage points from Wave 4. Top 15 and selected items shown.

The bottom line: She’s here. She’s in charge. Get used to it. She certainly is. (Men are still adapting). And she’s doing it without compromising her identity. She continues growing into her leadership roles with confidence and pride, and an occasional shift in demeanor. Brands that connect with and respect this sensibility will have the advantage, particularly if they can help her lead more effectively, while staying true to her identity and ideals.

7

70%

63%

57% 54% 55% 57%

Gen Y Gen X Boomers

Women

Men

% Describing Themselves as “Smart”

Generational Evolution: Gen Y Women Feeling Potential and Pressure While growing feelings of being knowledgeable, independent and successful are relatively broadly based across age groups, there are also distinct patterns across generations. Particularly interesting is the leadership shown by Gen Y women on these dimensions, as well as the trade-offs and pressures associated with high expectations among young women today.

Seventy percent of Gen Y women describe themselves as smart, compared to only 54 percent of Gen Y men – a gender gap that shrinks among Xers and disappears among Boomers. In fact, all generations of men, as well as Boomer women, are roughly equivalent on this dimension – only Gen Y women, and to a lesser extent, Gen X women, are above the others.

The pattern of leadership from Gen Y women is seen in many positive terms – including ambitious and successful – as well as terms such as stressed and exhausted. The results highlight the potential and pressure felt by many Gen Y women. They are the first to grow up in a post-Title IX world where few question the message that “girls can do anything boys can do” – an ideal for which Boomer women fought, and to which Xers adapted. Exemplifying this potential/pressure dynamic: Facebook COO Sheryl Sandberg counsels young women to “lean in,” but some feel her message comes with a subtle rebuke – perhaps those who aren’t massively successful simply aren’t “leaning in” enough.

The bottom line: The fine tuning of messaging by gender and generation is more imperative than ever. Brands seeking to connect with young women in particular must speak to her confidence and concerns, her aspirations and anxieties.

Similar pattern for …

Sarcastic

Stressed

Successful

Ambitious

Anxious

Exhausted

8

35% 36%

49% 54%

29%

46%

Gen Y Gen X Boomers

Women Men

She is on a Long-Term Path Toward Achieving Her Goals She is, by and large, relatively satisfied with her life, although satisfaction dynamics vary across gender, generation and aspects of life. In general, among American women …

79 percent of mothers are satisfied with their relationships with their children.

More than half are satisfied with home life, their mental/emotional health, and relationships with friends and romantic partners.

40 to 50 percent are satisfied with their leisure time, work-life balance, physical health and career (reflecting the stresses and trade-offs of modern life).

Only about one-in-four are satisfied with their finances.

While Gen Y women led in some measures of having a positive self-concept, Gen Y men report the highest in satisfaction (and perhaps expectations) in many aspects of life (right). Satisfaction drops for Gen X men (“mid-life crisis”), as the realities of married life, family obligations and (often) modest career advancements sink in.

In contrast, women score consistently lower in satisfaction across Gen Y and Gen X. Satisfaction rises among Boomers for both genders, reflecting both generational- and lifestage-driven factors (empty-nester-hood, the reconciliation of expectations with reality).

The bottom line: While young men ride a roller coaster of emotions and expectations as they mature, she takes a different journey. She is less satisfied with some aspects of her life, but remains focused on the future, on her long-term goals and meeting the high expectations she has of herself (and, increasingly, which society has of her). Brands that understand, respect and facilitate her longer-term journey will connect with her most effectively.

79%

63%

59%

57%

55%

48%

45%

44%

41%

28%

% of Women Extremely/Very Satisfied With …

*among mothers. Men: less satisfied with relationship w/children (69%); slightly more satisfied with mental/emotional health (65%) and leisure/hobbies (53%)

% Extremely/Very Satisfied With Career (Similar patterns for Home-life, Work-life Balance, Finances)

Relationship with my children*

Home life

Mental/emotional health

Relationship with friends

Romantic/intimate relationships

Leisure/hobbies

Work-life balance

Physical health

Career

Finances

9

Men – and Gen Y Women – Perceive a More “Gender-Equal” World

More than 40 percent of women perceive equality of the sexes in the home, education, business and society generally; nearly one-third see equality in national politics. Beyond that, women tend to see an advantage for themselves in making household decisions, and perceive men as having more success in business, society and politics. (Interestingly, women perceive educational achievement as roughly equal, whereas many data sources suggest women are increasingly surpassing men educationally.) Men perceive slightly more equality in the home and society, but otherwise show comparable ratings. Both genders perceive salary disparities; 90 percent of women (and 75 percent of men) agree, “Men are often paid more than women, even for doing the same work.”

In personal strengths, approximately 40 to 70 percent of women perceive equality, but the broader patterns is one of women perceiving greater strength in household leadership and emotional strength, with solid equality in leading a team and being tech-savvy. Women acknowledge male superiority only in negotiating and asking for salary increases (remarkably, the aforementioned Sheryl Sandberg was prepared to accept her Facebook position without negotiation, until her husband “went apoplectic” and insisted on it). In contrast, men perceive more equality overall, and male strengths in team leadership, technology, negotiation and rebounding from setbacks.

Just as men perceive more gender equality, so do Gen Y women. For example, while women in general perceive themselves as stronger “emotionally” (e.g., having difficult conversations), this is largely a Boomer mindset. In contrast, Gen Y women are far more likely to perceive gender equality in emotional strength, pay and other areas.

Who is more successful at …

Women Equal Men

Household decisions 45% 47%* 8%

Educational attainment 20% 63% 17%

Society in general 8% 47%* 45%

Business 3% 40% 57%

National politics 2% 29% 70%

Ratings among American women. * ~10 percentage points higher among men; otherwise, men and women give comparable ratings.

Women’s Ratings Men’s Ratings

Who is better at … Women Equal Men Women Equal Men

Parenting 51% 47% 2% 42% 48% 10%

Leading a household 47% 44% 9% 20% 56% 24%

Having difficult conversations 52% 36% 12% 31% 46% 23%

Rebounding after a setback 38% 46% 17% 18% 51% 32%

Making smart purchase decisions 40% 56% 4% 19% 60% 20%

Leading a team 11% 68% 21% 5% 57% 38%

Using technology 8% 67% 25% 3% 59% 37%

Being assertive in negotiations 8% 43% 50% 4% 46% 49%

Proactively asking for salary increases

7% 35% 58% 6% 52% 42%

Responses >30% bolded above.

The bottom line: Many women and men see gender equality in strengths and opportunities, but few of either gender see true equality across the board. Again, generational differences stand out. Messages that point to differences between men and women will likely resonate more among Boomer women. Messages that speak to striving toward longer-term goals in the context of greater gender equality will resonate more with younger women.

10

A male perspective on ‘joint’ decision-making: “When there's an important decision to be made, my wife and I sit down and calmly discuss it together, weighing the pros and cons, expressing our opinions, and generally being equal partners in the decision. Then I do whatever she tells me to do.”

Wives and Husbands: Inequality and Differing Perceptions in the Household Spousal relationships are the nucleus of many households, and for most, provide deep emotional security. Among the three-fourths who are married or partnered, half of both genders strongly agree, “My spouse/partner is the ideal companion I always dreamed about.” Nearly two-thirds of men, and three-fourths of women, strongly agree, “I am very fortunate to have my spouse/partner in my life.” Still, the gender inequalities seen at the abstract societal level are day-to-day realities for most women. Among those married or partnered. …

64 percent of women have college degrees, compared to only 52% of men

24 percent of women say they make more money, while 68% say their spouse makes more

In the marketplace, she perceives herself controlling day-to-day spending, with three-fourths or more feeling responsible for household purchases, while she considers big-ticket purchases to be a joint responsibility. He perceives the division of labor differently, seeing day-to-day decisions as jointly made, and big-ticket decisions as largely his. Much of the disconnect lies in differing definitions of “responsibility.” Women likely make the vast majority of day-to-day purchase decisions, while men tend to express occasional preferences and offer cursory input – men consider this “shared” responsibility, while women feel the weight of these responsibilities.

The disparity in spousal perceptions of responsibility is particularly dramatic for financial decisions. Two-thirds of married/partnered women feel financial decisions are jointly made, with another 25 percent feeling primary ownership. Most married/partnered men, however, consider themselves primarily responsible, and only 3 percent consider their wives to be responsible. Interestingly, this same pattern of differing perceptions holds true among Gen Y women and men, and extends to perceptions of responsibility for large purchases.

Less than one-third of women and men are satisfied with their finances, and it undoubtedly contributes to marital stress, but purchase decisions are less likely to become a point of marital conflict. Across the dozen categories measured, an average of nearly 90 percent of women and men agree with their spouse’s purchases most or all of the time.

The bottom line: Finances stand at the intersection of women, power and money – and in many respects remain the last great bastion of gender inequality. Still, messages that reference differing perceptions – but eventual agreement – on household decisions will likely resonate with both genders.

66%

43%

25%

3%

9% 54%

What women say What men say

Husband

Wife

Equal

Responsibility for Financial Decisions (among married/partnered)

11

She Is Value-Oriented, Yet Satisfied in the Marketplace

Since The Great Recession, value and price have been dominant marketplace themes, across categories and genders. Still, women generally lead in both price- and value-orientation, particularly in home-related categories. Only in financial services are men significantly more price-focused. Despite constrained spending, satisfaction with products and services is relatively widespread.

Across the 12 categories measured, 81 percent of women and 74 percent of men are extremely or very satisfied with the products and services they use.

For both genders, satisfaction is lowest with financial services and investments.

Across categories, Gen Xers tend to be the most price-sensitive and least satisfied with the products and services they use.

Satisfaction correlates only modestly with brand loyalty; even brands that satisfy their customers cannot assume loyalty or repeat business, and must strive for continuous improvement.

In addition to a stronger value-orientation, women are more inclined to spend on experiences, while men are more likely to spend on products. Men also prefer brands they “grew up with” and luxury brands, despite feeling more financially constrained.

% agreeing … Women Men

I take pride in making smart purchase decisions

98% 92%

I am a smarter shopper than ever before

92% 86%

Good value for the money is more important than price

91% 91%

I usually wait for something to go on sale before I buy

84% 74%

Extremely/very important to get the lowest prices

Women Men

Automobiles 68% 66%

Household supplies 65% 51%

Food/groceries 63% 58%

Household appliances 60% 48%

Personal care items/toiletries 60% 52%

Vacations 56% 55%

Fashion apparel and accessories 55% 49%

Technology 54% 51%

Watches or jewelry 52% 53%

Household furnishings and decor 51% 44%

Financial services/investments 51% 62%

Beauty/personal grooming items 48% 45%

% agreeing … Women Men

I would prefer to spend money on experiences rather than things

74% 65%

Financially, I am worse off now than I was before the recession started

47% 54%

I usually buy the brands I grew up with 45% 60%

In many categories, I prefer to buy luxury brands

28% 38%

The bottom line: Messages of value and low price will resonate across genders and generations. Still, there are subtleties by gender. Women are particularly value-oriented, with a preference for experiences and an openness to brands; men are less price focused, with a preference for products, familiar “comfort” brands, and an openness to re-engage the luxury marketplace.

12

38%

43%

Wave 4 Wave 5

“Option Overwhelm” Widespread and Growing Although satisfaction with products and services is relatively widespread, there are considerable frustrations with the shopping process and with channel experiences more generally. For example, 43 percent of women and growing agree, “I’m overwhelmed by all the product choices available these days.” Option overwhelm is highest in technology and financial services, particularly among women.

When asked about “pet peeves” and frustrations in various categories, respondents of both genders frequently cite issues of option overwhelm, along with issues of confusion and dissatisfaction with salespeople (below). Particularly troubling for marketers: our qualitative research finds that option overwhelm often leads women to become even more price-sensitive, as she defaults to simpler decision rules of buying the least expensive options, or “whatever is on sale.”

The bottom line: Relationships with consumers – and profit margins – can be strengthened by simplifying messaging, offerings and product portfolios.

% Overwhelmed With Product/Brand Options in Category

Category Women Men Representative “frustrations and pet peeves” in category

Financial services/investments 62% 46% “Difficult to compare apples to apples.”

Technology 51% 32% “I feel like I get lied to just to sell the most expensive or latest and greatest product even if that is not what I'm after.”

Beauty/grooming items 41% 25% “So many to choose from … [but they] seem to do same things.”

Automobiles 38% 29% “Buying process takes time, pricing is shady, always trying to sell you more than you came in for.”

Fashion apparel/accessories 29% 26% “You have to shop a lot and many places to find the nicest things for the best prices.”

Household appliances 28% 26% “So many brands. Don't always understand what each feature does or if it is important.”

Vacations 27% 26% “Hard to figure out where to begin — too many Web resources.”

Food/groceries 23% 20% “Many grocery stores have poor layouts… have to hunt for products or wander the entire store to find just a few products.”

Household furnishings/décor 23% 32% “Lots of choices, but hard to decide what to buy. Some things are very expensive but look and feel cheap.”

Household supplies 22% 19% “Overwhelmed by volume of choices.”

Personal care items/toiletries 21% 20% “Huge array of products; don't know which ones are best for me; wide range in price; exaggerated claims.”

Watches or jewelry 21% 32% “Buying online is a stretch because you can't try them on before you buy. But in a physical store, the salespeople can be pushy.”

“I’m overwhelmed by all the product choices available these days”

13

She has a Rich, Multidimensional Perspective on Brands When asked about the most meaningful and important brands in their lives, women and men cite some of the same brands. Apple and Amazon are widely cited for both genders, along with (to a lesser extent) Samsung, Disney and Honda. Despite a handful of similarities, gender differences stand out starkly.

Her list encompasses more brands and more categories, including brands related to groceries, packaged goods and discount retail. Broadly speaking, her list reflects her thoughtful approach to marketplace choices, her multifaceted approach to thinking about brands, and the earnestness with which she approaches her responsibilities as the chief purchasing officer.

Overall, his list contains fewer brands from fewer categories. It reflects a less differentiated perspective about many marketplace choices, and a more focused enthusiasm for his individual interests, including autos, fast food and athletics.

If you were to create a collage of brands/products that represent your life, which brands would you include? Please describe some brands that are particularly meaningful or important to you. (Larger font = more mentions)

Her brands

His brands

14

She Seeks Reliable, “Solid” Brands Brands remain crucially important in today’s marketplace. Only 32 percent of women agree, “All brands are pretty much the same,” a figure that drops to 26 percent among Boomer women (but rises to 37 percent among men, and 49 percent among Gen Y men). When asked about factors (besides price) shaping product choice, issues of brand rose to the top – across genders and generations. Reliability and trust are particularly important, along with customer service. Women, particularly Boomer women, are more likely to make marketplace choices based on “values” or “corporate social responsibility” considerations. Gen Y women skew higher only in their interest in rewards and loyalty programs (they may consider “green” and other principle-based factors a given). Men are more likely to be swayed by brands known for innovation.

Reliability is a consistent theme when women named their “most-trusted brand” in various categories. The brands named most frequently are better described as “solid,” and generally characterized by a tracked record of functional and utilitarian excellence, rather than being known for style or buzz (below: larger font = more mentions).

The bottom line: In today’s marketplace, reliable and “solid” brands have tremendous appeal, across genders and generations, suggesting the appeal of “selling the steak, not the sizzle.” Additional (secondary) layers of messaging can provide more targeted appeals, such as values-focused approaches for Boomer women and innovation-related messages for men.

Factors Extremely/Very Important When Choosing Brands (Aside From Price)

Women Men

Is a reliable brand 87% 86%

Is a trusted brand 82% 78%

Has excellent customer service 81% 70%

Treats employees fairly 69% 56%

Is made in America 63% 57%

Is an American brand 61% 58%

Rewards/customer loyalty programs 61% 54%

Is environmentally friendly 54% 43%

Gives back to or supports the local community 47% 43%

Is known for innovation 45% 52%

Is affiliated with a charity or cause 29% 27%

Most Trusted Household Supply Brands

Most Trusted Automotive Brands

Top 3 across genders & generations

“Values” considerations higher among women, particularly Boomer women

Higher among men, particularly Gen Y men

15

“I'm always willing to try new brands, especially food, entertainment, and cleaning products. New things are created, and your tastes change ...”

She is Open to New Brands Across Categories While brand considerations are crucial in the buying process, and solid brands are highly valued, there is nevertheless considerable openness to brands. Across each of the 12 categories, most women describe themselves as “open to a variety of brands,” and a minority describe themselves “loyal to certain brands.” On average, only 29 percent of women in a category express loyalty (significantly below men’s 37 percent). Although brand openness is the general rule across segments, generational and life-stage patterns are apparent as well.

Boomer women are most loyal to beauty brands (52 percent)

Xer women are most loyal to personal care brands (51 percent)

Gen Y women are most loyal to automotive (49 percent) and technology (45 percent) brands

In some categories, few brands have been able to establish trust or otherwise distinguish themselves. Consider the size of “none” and “store brand” in the word cloud (below) summarizing most trusted brands in food and grocery categories. Apparel and financial services also had a large number of “no trusted brands” responses. In other categories, such as technology, a small number of relatively new brands have completely reshaped the industry, reinforcing consumer comfort with new brands.

The bottom line: There are obviously opportunities for new brands, provided they are “solid” and their messaging can cut through and differentiate amid option/message overwhelm. While the door is not closed to existing brands, they clearly cannot “rest on their laurels” – they must continue to communicate and deliver solid benefits.

Loyal to Certain Brands

Open to a Variety of Brands

Beauty/personal grooming items 46% 54%

Personal care items/toiletries 45% 55%

Automobiles 42% 58%

Household supplies 36% 64%

Technology 36% 64%

Food/groceries 34% 66%

Financial services/investments 32% 68%

Fashion apparel and accessories 20% 81%

Household appliances 18% 82%

Watches or jewelry 17% 84%

Vacations 15% 86%

Household furnishings and décor 7% 93%

Women’s ratings shown: categories in bold denote women being significantly less brand loyal than men

Most Trusted Technology Brands

Most Trusted Food/ Grocery Brands

16

Extremely/Very Important Sources of Information When Choosing Brands

She Samples Many Information Sources When Choosing Brands Her openness to brands presents obvious opportunities, but introducing new brands (and crafting messages that cut through) are challenging amid growing “option overwhelm.” It presents both a communication challenge and a purely financial one: new consumers are more challenging to attract, and current customers more easily defect, raising the cost of acquisition and retention.

Adding to the challenge: the three most widely used information sources shaping brand choice are largely outside of the direct control of brands: customer reviews, word of mouth and expert opinions. Media comes next on the list, followed by more directly controllable factors such as company websites, social media and advertising. Men show a similar pattern, but are slightly less influenced by customer reviews and more influenced by celebrity endorsements.

Interestingly, each of these sources of information is more widely used among Gen Y women, who sample a wider range of sources to gauge reputation and make decisions. Not surprisingly, Gen Y women are also particularly engaged with social media, and feel a broader responsibility to participate in the conversation and help others make smart purchase decisions. While women of all generations are relatively comfortable with technology, Gen Y women are particularly likely to integrate technology into all aspects of their lives, including in-person retail shopping experiences.

The bottom line: Women and men live in a multichannel world and seek out multiple sources of information as they evaluate brands. Brands must live in each channel and actively influence or manage those channels they cannot directly control. Brands must strive for multiplatform message exposure and communicate consistent of messages and imagery across platforms.

% of women who agree … Gen Y Gen X Boomers

I feel it is my responsibility to help friends and family make

smart purchase decisions 67% 52% 45%

While I am shopping in a store, I sometimes use a smartphone or tablet to check the prices of

items that I may want to buy

56% 36% 19%

76%

68%

60%

42%

28%

24%

5%

Customer reviews

Information from people I know

Expert opinion/reviews

What I have read or heard about them in the media

Company website/ social network presence

Advertising

Celebrity endorsements

17

“Most remarkable are the commonalities among these Hispanic and African-American women, which are apparent despite their diverse definitions and varying preconceptions many have about each; moreover, they share many of these commonalities with younger women in the U.S. and around the world.”

Key Segments: Hispanic and African-American Women This report has primarily profiled women in the United States, both in total, and by generation. Of course, women are tremendously diverse, encompassing many segments and sub-segments that can be profiled extensively with data from Women, Power & Money. Below are brief profiles of two key segments: Hispanic women and African-American women.

As with any segment profile, including generational ones, it should be remembered that the skews presented reflect generalizations and tendencies that do not apply to every member of the segment. Perhaps most remarkable are the commonalities among these Hispanic and African-American women, which are apparent despite their diverse definitions and varying preconceptions many have about each; moreover, they share many of these commonalities with younger women in the U.S. and around the world.

Hispanic women are strongly distinguished by regional skews, with 53 percent living in the West (essentially double that of women in general), and to a lesser extent her relative youth (median age 38 vs. 44). She is, on average, slightly happier than her peers, and at home she has particularly strong ties with her family, children and spouse (and is more concerned about issues of family safety). In the marketplace, she is particularly value-oriented, interested in reward programs and eco-friendly brands. She is very comfortable with technology and exhibits a strong luxury interest, particularly in categories of technology and apparel. She is extremely open to new brands, chiefly automotive brands.

African-American women skew younger (median age 42) and are more likely to live in the South (63 percent, vs. 36 percent in total). She is, on average, less satisfied with her spouse and home life, but more satisfied with her friends and physical/emotional health. She considers herself smart and is most likely to perceive women as leaders in the home, in education and making smart purchase decisions. She skews lower income relative to the national population of women, but is far more likely to agree, “I am better off financially than most of my friends and family.” And despite skewing price-focused, she is predominantly loyal to brands and has a wide range of luxury interests. She is less prone to “option overwhelm,” and perhaps as a result, is particularly satisfied with the products and services that she uses. She also has an interest in brands with a reputation for innovation or with community- and cause-related connections.

% of women who agree … Total Hispanic African-

American

Own and use a smartphone 60% 77% 69%

Purchase recommendations I make to friends/family are extremely/very influential

30% 43% 43%

In many categories, I prefer to buy luxury brands

28% 40% 44%

Advertising is extremely/very important source of info when choosing brands

24% 38% 37%

% living in urban areas 22% 37% 40%

Overwhelmed by all the tech brand/choices available

51% 40% 40%

18

Key Segments: Affluent Women We define “affluent” women as those with household incomes of at least $100,000; nationally, affluent Americans account for 20 to 25 percent of the population, but hold nearly 70 percent of privately held net worth, making them tremendously important to marketers. Demographically, affluent women skew married (80 percent), college-educated (80 percent), suburban (75 percent) and employed (72 percent). She skews slightly more Boomer, but doesn’t particularly show the attitudinal skews characteristic of Boomers or Gen Y women. As with women in general, married affluent women are slightly more educated than their spouses, but much less likely to be the primary breadwinner.

Affluent women are more satisfied with several aspects of their lives, particularly finances, career and mental/emotional health. She is influential at home and in the marketplace; she has more responsibility for household purchases (specifically groceries and home décor), and a greater say in financial responsibilities. She is distinct in both attitudes and identity, as highlighted below.

Despite higher income, affluent women are as just as value-oriented, and only slightly less price-sensitive than women in general. Still, she expresses a preference for higher-end brands in technology and in the grocery store; 42 percent of affluent women agree, “In many categories, I prefer to buy luxury brands” (vs. 28 percent). She is relatively loyal to tech brands, but this tendency toward brand loyalty does not extend to other categories. In making decisions, she values expert opinions and innovation. Interestingly, compared to women in total, affluent women are …

More likely to be overwhelmed in lower-ticket categories such as beauty and personal care items

Less likely to be overwhelmed in categories such as technology, household appliances, financial services and automobiles

Attitudes: Affluent women are more likely to agree …

I would prefer to spend money on experiences rather than things

It is important to me to maintain a youthful appearance

While I am shopping in a store, I sometimes use a smartphone or tablet to check the prices of items that I may want to buy

Self-descriptors: Affluent women more likely to describe themselves as …

Intelligent Attractive

Smart Successful

Independent Ambitious

Informed Influential

Optimistic

19

Women’s Lives: National Variations on Global Themes Wave 5 marks the first international Women, Power & Money study with U.S. interviews supplemented by those conducted with women in the U.K., France, Germany and China. Many of our core findings about American women are in fact relatively consistent across countries. Around the world, she tends to be…

The CEO of most households Growing increasingly comfortable in her leadership roles More focused on the future as economic anxiety eases Relatively satisfied with family, home and self More educated, but lower paid than her spouse

In control of day-to-day purchasing A partner in big-ticket and financial decisions Value- and price-focused across categories Increasingly frustrated by “option overwhelm” and channel experiences Looking for “solid” brands – reliable, utilitarian, service-oriented Extremely open to new brands, even if satisfied with current options Seeking information from a wide variety of sources

U.S. U.K. France Germany China

Economic concerns prevalent but easing

Still feeling economic pinch

Still feeling economic pinch

Feeling relative economic strength

Less satisfied with various aspects of life and marketplace

Feels “smart”; skews suburban, slightly conservative; most content with spouse

Satisfied with relationships with friends; least worried about parents’ financial status

Strongest perceptions of gender equality, in household and society

Gender specialization in household; more equal opportunity in society

Perceive male-driven society; lower spousal satisfaction; strong female influence in household and shopping

Sales-focused; prefer spending on “experiences”; interest in rewards and CSR

Most openness to new brands; low luxury focus

Low luxury focus; preference for French brands; prefer spending on “things”

“Smart shopping” as a way of life; satisfied consumers; strong luxury interest

Strong interest in brands and luxury; concerns about product safety and quality

Strong social media use, particularly “beyond Facebook”

Less focused on innovation; strong desire to help others make smart purchase decisions

High concern about food safety

Particularly satisfied with home, family, leisure/hobbies

Strong mobile and social media use

The bottom line: Many brand promises will play well on a global stage. However, there are many distinctions across countries, suggesting that even the most globally appealing messages (e.g., value) may still benefit from localization.

International “option overwhelm”

China 53%

France 47%

Germany 45%

U.K. 36%

U.S. 32%

% overwhelmed (average across 12 categories)

In life

In the marketplace

20

Gen Y and the Emergence of a Global Generation of Women Some generational dynamics are quite country-specific, but many are in fact relatively universal. For example, in virtually every country examined, Boomer women perceive more differences between men and women, both in negative respects (e.g., perceiving more pay/power dominance for men), and positive aspects (e.g., perceiving women as having more emotional strength). Around the world, Gen Y women have a different perspective and perceive more gender equality in skills, opportunities and accomplishments. This is, in fact, just one of many similarities that Gen Y women around the world share, forming the basis of a global Gen Y economy, as highlighted in the table below.

In a very real sense, Gen Y is a truly global generation of women, with perspectives and marketplace preferences that transcend borders and cultures, shaped by shared experiences of technology, social media, emerging brands and the cultural narrative that preached “girls can do anything boys can do.”

Relative to Boomers, in virtually every country examined, Gen Y women …

Elements of the global Gen Y marketplace

Perceive more gender equality in skills, strengths, accomplishments and income

The expectation of equal opportunity

Prefer spending on experiences over things The experience economy

Feel better off financially than her peers Optimistic and future-focused

Buy the brands she grew up with New to wider brand exploration

Worry about her parents’ ability to live independently Pressures of parental care start young

Integrate technology into her shopping habits Media- and tech-infused lifestyles

More interested in reward and loyalty programs She expects corporate social responsibility and looks for more tangible rewards in addition

The bottom line: The emergence of a globally-coherent Gen Y generation and corresponding marketplace creates profound opportunities. However, brands and messages must appeal to the unique interests and preferences of a generation that has grown up with a truly unprecedented confluence of new media and new influences.

21

Women, Power & Money: Key Contributors

Lisa Dimino is senior vice president and senior partner at FleishmanHillard. She is a brand

marketing and reputation management strategist for many of FleishmanHillard’s largest clients. She has supported some of the world’s leading brands, including AT&T, Barnes & Noble, Carnival Cruise Lines, Motorola, Procter & Gamble, Sony and Yahoo!

FleishmanHillard Inc., one of the world's leading strategic communications firms, has built its reputation on creating integrated solutions that delivers what its clients value most: meaningful, positive and measurable impact on the performance of their organizations. Based in St. Louis, the firm operates throughout North America, Europe, Asia Pacific, Middle East, Africa and Latin America through its 80 owned offices (www.fleishmanhillard.com). FleishmanHillard is a part of Diversified Agency Services, a division of Omnicom Group Inc.

Marlene Greenfield is vice president, executive director of research at Hearst Magazines. She

leads all custom and syndicated advertising and marketing research throughout the Hearst Magazine Division, including both the print and digital platforms for all 20 magazine brands. Her work encompasses acquiring a deeper understanding of the ever changing media landscape as well as keeping abreast of behavioral insights across all aspects of consumer life. An active member of the media research community, Marlene sits on the board of directors of the Media Rating Council and is a member of the MPA Research Committee.

Hearst Magazines is a unit of Hearst Corporation (www.hearst.com), one of the nation's largest diversified media and information companies. With 20 titles in the U.S., Hearst is the leading publisher of monthly magazines in terms of total paid circulation (ABC 2012) and reaches 83 million adults (Fall 2012 GfK MRI). In addition, the company publishes nearly 300 editions around the world.

Dr. Stephen Kraus is senior vice-president and chief insights officer of Ipsos MediaCT’s

Audience Measurement Group. In this role, Steve helps lead the Mendelsohn Affluent Survey, now in its 36

th year of tracking the lives, lifestyles, spending patterns and media habits of affluent

Americans. Steve is author of three books on success and affluence in America, and his insights are widely cited in the media. He has a Ph.D. in social psychology from Harvard University. Steve has directed Women, Power & Money since its inception.

A publicly-traded firm headquartered in Paris, Ipsos is the third largest market research firm in the world with offices in more than 80 countries (www.Ipsos.com). Ipsos MediaCT is the specialization within Ipsos built to reach, engage and more effectively understand today’s consumer in the fast moving media, content and technology space.

Want more? While we've summarized key highlights from Wave Five of Women, Power & Money, there is much more including extensive information about women's media and technology usage, and her approach to a dozen different product and service categories. Together, the five waves represent a powerful database that can be mined to address any number of specific marketing questions. For more information, please contact us at womenpowermoney@fleishman.com.