58. Many young, working couples choose to have just one kid or none at all. These couples hardly have
any responsibilities like saving up for children’s education or securing children’s future. This leaves
them with more than enough money to spend on luxury goods. Most of them enjoy high spending
power and splurge on a lot of luxurious goods. Which of the following trends is reflected in this
scenario?
Declining consumer affluence
Increasing life expectancy
Increasing cultural diversity
59. Businesses dealing with planned retirement communities have become profitable as the Baby Boomer
population becomes older. Identify the trend affecting consumer behavior in this scenario.
Declining consumer affluence
Increasing life expectancy and the aging consumer
Increasing cultural diversity
BABY BOOMERS SCENARIO
The Baby Boomers represent a generational microculture that has lived the same defining moments in
history such as post-war affluence and progress. A huge percentage of the Baby Boomers have reached
retirement age, but according to a survey, most Americans between the ages of 50 and 55 want to
move on to an “encore career” instead of retiring to a life of leisure like previous generations. Many of
these encore careers combine income with social impact, meaning these individuals want to do
something that can change the world. “Social sector” industry jobs, such as health care, educational
services, nonprofits, performing arts, museums, and libraries, are expected to experience robust growth
in the next decade, fitting nicely with the aspirations of the Baby Boomer generation. Some Baby
Boomers want to get involved with social causes as a way to identify themselves as distinct from their
predecessors. The fact that many of them are now pursuing encore careers would mean that they won’t
have much time to spare in caring for their grandchildren. Their children might be upset because they
expect their parents to help with child care just as their grandparents did for their parents. Many of
these Baby Boomers have lesser number of grandchildren than earlier generations as most of their
children either decide to have no kids or adopt a one-child policy. This makes it possible for their
children to maintain a lifestyle similar to their parents even though most of them are not as affluent or
well-off as their parents. Many firms that provide services for taking care of the elderly are aware of
the spending power of this specific population. The firms are conducting research on the Baby
Boomers to assess their needs based on attributes such as age, income, gender, and religion.