Income and age may not be the best indicators of online shopping behavior, with a variety of lifestyle and demographic factors also playing a role, according to a new study from Acxiom Corp.
While there is a strong correlation between higher income and increased online spending, there is not a direct relationship, Acxiom says in its Personicx Consumer Dynamics Study. The study is based on analysis of shopping by clusters of consumers based on specific consumer behavior and demographic characteristics.
When it comes to income, three clusters, including so-called Hard Chargers—ages 30-45, single with no kids, and living in suburbs or towns—spent more online than so-called Established Elites—ages 46-65, married or single, with no kids, and living in the city or surrounding areas. The Established Elites had the largest mean income of the 23 clusters studied; Hard Chargers’ income averaged 42% less than Established Elites.
Members of the City Mixers, an upper-middle-income cluster, also are more likely to be above-average online spenders than members of 11 affluent and wealthy clusters. City Mixers spending the most online were ages 36-45, single, with no kids and lived in a downtown metropolitan area.
The age range of committed online spenders—those who spent more than $1,000 online in the past 12 months—also conflicts with conventional wisdom, the study found. The average age of the head-of-household for 14 of the higher spending clusters (about two-thirds of the total) is at least 40 years, and six clusters have an average head-of-household age of 50 or older.
The study breaks out committed online spenders by age within clusters. Leading the committed spenders were members of the Summit Estates cluster, ages 36-55, who were married with school-age children and lived in cities or surrounding areas.
Ranked second among committed spenders were members of the Shooting Stars who were ages 30-45, married or single, with no kids, and lived in suburbs or towns; followed by Hard Chargers and Established Elite.
The study also notes that online shoppers in younger clusters—those in their twenties or thirties—who grew up with the Internet may already be committed online shoppers despite incomes that are in some cases half of others in their group.
Based on the study results, Acxiom recommends that online retailers refine marketing messages based on shopping behavior and then refine again based on the shopper’s life stage.
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