Tag Archives: Environment

by | Wednesday, November 16, 2022 · 8:47 am

Gen Z’s top 20 brands

Marketers recognize the importance of understanding demographics when deciding on target markets to pursue. Age is a significant factor as different generational cohorts have different tastes, aesthetics, expectations, and values. While different research firms may define the age cohorts slightly differently, the most-often cited years for Gen Z are 1997 to 2012, making Gen Z between 10 and 25 years old. This group is just forming their tastes and solidifying their values. This of course leads them to favor certain brands and companies over others. But which ones are their favorites?

Since this group makes up a large portion of traditional college students, it is critical for marketers to understand which brands they favor and why. Their evolving preferences can indicate how companies should adapt to the new group of consumers.

A recent study done by Morning Consult, which fields tens of thousands of surveys around the world, measured Gen Z’s favorite brands.  Data was gathered between May and August, 2022, with an average sample size of 2,031 Gen Z adults born between 1997 and 2004. Key insights and rankings include:

  • Tech brands are tops with Gen Z. The most favorable brand is YouTube at 86% favorable impression.
  • Major retailers such as Amazon, Target, and Walmart have high ratings hovering around 80% favorability.
  • In particular, gaming brands hold strong sway, along with food and beverage brands.
  • Top 10 most favorable brands: YouTube, Google, Netflix, Amazon, M&Ms, Walmart, Target, Doritos, KitKat, and Oreo.
  • Top 10 with Gen Z men: YouTube, Gatorade, PlayStation, Google, Walmart, Netflix, Microsoft, Amazon, Nike, M&Ms.
  • Top 10 with Gen Z women: YouTube, Google, Netflix, Target, M&Ms, Doritos, Amazon, Oreo, KitKat, Walmart.

Which brands are your favorites?

Group Activities and Discussion Questions:

  1. Poll students: What are their favorite brands? (Note: You might have students break into groups to arrive at a list of 20 brands.)
  2. Link to download the report from Morning Consult: https://go.morningconsult.com/2022-q3-pg8764a1-gen-z-favorite-brands-download.html
  3. Divide students into teams and have students analyze a data segment in the report. Teams can present their insights to the class.
  4. Have teams choose a brands that is NOT in the top (i.e., cars, household goods, consumer product companies).
  5. How can these findings be used to market weaker brands to Gen Z consumers?

Sources:  Jackson, S. (2 October 2022). From Amazon to Skittles, a new survey of the top 20 brands among Gen Z adults shows tech and snack brands reign supreme with the demographic. Business Insider.; Morning Consult. Gen Z’s Favorite Brands.

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by | Monday, November 14, 2022 · 8:36 am

More Electric Vehicles Make it to Market

There is no doubt that electric vehicles (EV) are seeing an increase in inventory and sales. Globally, electric vehicle sales doubled in 2021 and sales are still strong in 2022. In the second quarter of 2022, EV sales were 5.6% of the total auto market, up 2.7% from the same time a year ago. Consumers are embracing the EV market for its clean energy and solid performing vehicles.

Pricing remains a sticking point with consumers though as many EVs are priced in the range of $50,000 – $100,000 and up. Sure, consumers want to help the environment, but they also face a very real limitation on spending for EVs.

To help position it as a more general option, General Motors plans to release an EV Chevy Equinox in fall 2023 at the lower price point of $30,000. Today, there are few models of any type of EV below $35,000. Complicating the pricing, the costs of battery materials (such as lithium and nickel) have risen significantly. On average, U.S. buyers paid $66,000 for an EV, an increase of 28% from a year ago according to J.D. Power research.

The Inflation Reduction Act is one option to help consumers lower the costs. It offers up to $7,500 in federal EV tax credits, but only for models that meet certain domestic-production requirements. While both new and used cars qualify, there are other restrictions that can limit how much tax credit a consumer receives including income limits and vehicle list prices.

Are you ready to make the leap to an EV vehicle?

Group Activities and Discussion Questions:

  1. Poll students: What is their perception of pricing for EVs in today’s market?
  2. Have students research prices for EV automobiles and SUVs. Build a spreadsheet with information about select vehicles such as Volkswagen, Tesla, Kia, and Toyota.
  3. Have students research the Inflation Reduction Act for federal EV tax credits. What are the caveats?
  4. Show video from WSJ about the EV discounts: https://www.wsj.com/video/series/george-downs/the-climate-bill-unlocks-new-ev-discounts-but-not-everyones-a-winner/26F2FC57-3150-4311-AE3E-705E554AB4D6
  5. Another classroom discussion can focus on how the Inflation Reduction Act fits into an environmental scan for the EV market.

Sources:  Colias, M. (8 September 2022). GM courts mainstream buyers with $30,000 electric Chevy Equinox. Wall Street Journal.; Forbes growth sector: Electric vehicle sales and the new electric economy have arrived (24 September 2022). Forbes.

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by | Friday, November 4, 2022 · 8:03 am

The Cost of Buying Springsteen Tickets

First, a question for everyone… Do you think concert ticket prices are ‘too low’, ‘too high’, or ‘just right’? Going out on a limb here, we bet the biggest percentage of people selected that concert ticket prices are ‘too high’.

Example: Bruce Springsteen ticket prices were for sale for $5,000 and up. And that was if a buyer tried to purchase tickets directly on Ticketmaster.

Another example: Adele concert prices in Las Vegas started at $676 and went for $40,000 (for front row).

Ticketmaster, Live Nation, and StubHub now use “dynamic pricing” for concert tickets. This translates to prices fluctuating wildly; high demand equals high prices. These ticket hubs also have resellers who scoop up blocks of tickets and then resell those at a higher price, often using the original ticketing site to make the sale. The ticketing site earns commission from the double sale.

[Note: Ticketmaster release data that showed only 12% of tickets used dynamic pricing. Overall, only 18% of Springsteen’s U.S. tickets sold for under $100, and only 1% sold for more than $1,000.]

Regardless, buying concert tickets can be both confusing as well as expensive. When to buy? Where to buy? And if we can’t get tickets directly, what will a reseller charge for them?

What would you pay to see The Boss?

Group Activities and Discussion Questions:

  1. Pricing is a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  2. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  3. For Springsteen concert tickets (or any other entertainment), divide students into groups and have each group work on any/all of the six steps.
  4. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  5. Debrief the exercise. Compare the various pricing models and discuss advantages/disadvantages of each.
  6. Optional: Have students examine the pricing policies on Ticketmaster, StubHub, SeatGeek, and Live Nation. (Note: Ticketmaster and Live Nation merged in 2010.)

Sources:  Greene, A. and Millman, E. (2 August 2022). Springsteen fans raged over ticket prices. Experts say there’s no easy fix. Rolling Stone.; Lieber, R. (26 July 2022). The case of the $5,000 Springsteen tickets. New York Times.; other news sources.

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