The grandparent consumer: a financial "goldmine" with gray hair?

Purpose - The purpose of this research study is to examine how significant the grandparent market is, their spending on grandchildren, and whether the marketing is sustainable over time. The "grandparent" is an important segment of the senior population, projected to grow to 25.9 per cent of the population by 2010.Design methodology approach - A telephone survey of 500 grandparents was conducted using a randomized sampling plan. Purchasing levels were designed to cover six product service categories in which grandparents might be more inclined to spend: non-gift card presents, gift cards, school supplies, entertainment and travel, and financial investments.Findings - The findings indicate that grandparents represent a high attractive market. Nearly all grandparents (94.8 per cent) spend money on their grandchildren - nearly $975 per year. This makes the total market more than $54.5 billion annually, or $149.4 million per day, in just the product service categories included in the study. Furthermore, grandparent spending increases with the age of the grandparent, the number of times they see their grandchildren, the number and ages of their grandchildren.Originality value - Given the size of the market and the spending power of grandparents, companies would be justified in directing considerable resources to targeting grandparents for goods and services for their grandchildren. While seniors may have limited spending capabilities, they appear willing to reallocate their funds to grandchildren.