Impact of the Economy on the Black Family

Impact of the Economy on the Black Family
Presented by: Cheryl Mayberry McKissack, President and CEO, Nia Enterprises, LLC www.niaenterprises.com July 21, 2008
The State of the Economy
Current Consumer Confidence level is 50.4 points, the lowest point in
16 years
Current Oil Prices = $143 a barrel
Gasoline Consumption has fallen more than 6% from last year
The Consumer Price Index (CPI) for all food increased to 5.1% higher
than May 07
The overall price index for consumer spending is 0.4%, largest increase
in personal spending since November.
Foreclosures increased 48% from May 07
The current price of the dollar against the EURO is 64 cents
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Source: The Conference Board; The Commerce Department; U.S. Bureau of Labor Statistics;
RealtyTrac Inc.; Bloomberg L.P.
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Objectives
Assess the key economic issues that are
affecting the Black Family
Examine the connection and impact between
today’s economic conditions and the Black
family
Discuss opportunities and solutions designed
to cope and improve the overall quality of life
of the Black family during challenging
economic times
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Methodology
Data collection via 10-minute, 20-question online survey
conducted by NiaOnline’s “Nia Pulse” research unit
Survey conducted in June 2008 to members of NiaOnline’s
“Nia Pulse” Research Panel
Survey participants were national in scope and included
670 African-American women respondents ages 18-65
Demographics were collected from each respondent on age,
income, education, martial status, children, ethnicity, gender
and region
A portion of the questions were commissioned by the National
Black Women’s Town Hall Meeting
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Deliverables
Summary PDF report designed for attendees of 2008 TMN
Conference-IL (limited availability) --- The report will be
delivered electronically after data has been presented to the
National Black Women’s Town Hall Meeting on July 11, 2008
*Presentations: Developed from the Nia Pulse “Impact on the
Economy on the Black family ”Consumer Study.
Presentations are one hour in length with 30 minutes of
questions
*Custom cuts of research data of “Impact of the Economy on
the Black family ” study designed to client specifications
*Price determined based on client requirements
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NiaPulse:
Multicultural Consumer Advisory Panel
(www.niapulse.com)
Largest opt-in permission-based online marketing research
panel for people of color
Offers companies a direct link into the buying habits and
consumer preferences of the fastest growing ethnic
population groups
Expanded in 2006 to reach A/A and Latino multicultural
communities of both genders, with an A/A women specialty
Provides comparative data with other demographic
populations including sample from the general market
Panel reaches over 200,000 household members and
members are added daily through www.niapulse.com
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Impact of the Economy on the Black Family
Black women’s outlook on today’s economy
The impact and consequences of economic conditions
on the Black family
Solutions for improvement in the quality of life for
Black family during challenging times
Summary
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Impact of the Economy on the Black Family
Economic Issues
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Impact of the Economy on the Black Family
Nearly equal percentages of respondents said they feel better or worse
about future.
How do you feel about the future of you and your family compared to a
year ago?
40%
36%
36%
35%
28%
30%
25%
20%
15%
10%
5%
0%
Better
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Worse
The Same
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Impact of the Economy on the Black Family
Food prices was the top concern, followed by gas prices, employment and
health care insurance.
Please rate each issue below according to their importance to your
feelings about your future
Extremely
important
Very
important
Somewhat
important
Not
Important
at all
Gas prices
73%
18%
7%
2%
Food prices
75%
19%
5%
1%
Housing concerns
62%
24%
12%
3%
Current presidential
administration
67%
22%
9%
3%
Employment
70%
21%
7%
2%
The war in Iraq
51%
30%
16%
3%
Health care insurance
68%
24%
7%
2%
Reason
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Impact of the Economy on the Black Family
*When you go to bed at night, which concern keeps you up the most?
The top three ones that Black women reported keep them
up at night the most are (in descending order):
1. Will I be able to afford the rent or mortgage to stay in my
home?
2. Do I buy gas or groceries?
3. How do I save for retirement when I can't make ends meet?
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*Commissioned by the National Black Women’s Town Hall Meeting
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Impact of the Economy on the Black Family
*Please rate each issue according to its importance to you.
The four most important issues were (in descending order):
1. Economics
2. Health Care
3. Violence
4. Education
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*Commissioned by the National Black Women’s Town Hall Meeting
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Impact of the Economy on the Black Family
*Please rate each issue according to its importance to you during this
presidential election season
The three most important issues were (in descending order):
1. Building a stronger economy
2. Health care coverage
3. Raising educational standards
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*Commissioned by the National Black Women’s Town Hall Meeting
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Impact of the Economy on the Black Family
Eighty-four percent of the Black women surveyed reported having health
insurance
What is your current situation regarding health care insurance coverage?
I have health care coverage through Medicare or
another government source
11%
I have health care coverage through another source
10%
I do not currently have health care insurance
14%
I have health care for my children, but not for myself
3%
I have health care insurance through my job for myself
and my family
63%
0%
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10%
20%
30%
40%
50%
60%
70%
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Impact of the Economy on the Black Family
Impact and Consequences
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Impact of the Economy on the Black Family
The top actions taken by respondents in response to current economic conditions
were cutting back on eating out and postponing one or more major expenses.
Have economic conditions led you to take these actions during the last 6
months?
Make no changes in spending or saving
23%
Seek to generate additional income
Restrict spending to "required" living
expenses
Cut back on eating out
16%
20%
Yes
No
77%
23%
16%
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72%
28%
Postpone one or more major purchases
0%
77%
84%
84%
40%
60%
80%
100%
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Impact of the Economy on the Black Family
Most Black women who responded are using their rebates to pay existing
bills.
What have you done or will you do with your 2008 rebate check?
Other
Treat myself to a
purchase
18%
4%
Pay bills
Purchase something
fun for the family
55%
3%
Deposit into savings
account
0%
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20%
10%
20%
30%
40%
50%
60%
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Impact of the Economy on the Black Family
Family, friends, and magazines were perceived by Black women to be top
sources of positive images.
*Where do you find the most positive images or messages of black
women?
All the above
25%
Church
16%
Family/friends
Schools
22%
1%
Internet
6%
Television
Radio
8%
2%
Magazines
0%
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21%
5%
10%
15%
20%
*Commissioned by the National Black Women’s Town Hall Meeting
25%
30%
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Impact of the Economy on the Black Family
Television was chosen by the highest percentage of Black women.
*Where do you find the most negative images or messages of black
women?
All the above
17%
Family/friends
3%
Schools
3%
Internet
9%
Television
57%
Radio
Magazines
0%
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7%
3%
10%
20%
30%
40%
*Commissioned by the National Black Women’s Town Hall Meeting
50%
60%
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Impact of the Economy on the Black Family
Although the economy is tightening, Black women are not looking to their
primary relationships for financial support.
Have you ever been involved in a relationship with someone who made less
money than you do (whether casual dating, serious dating, or marriage)?
90%
80%
80%
70%
60%
50%
40%
30%
20%
20%
10%
0%
Yes
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No
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Impact of the Economy on the Black Family
Black women are comfortable with the idea of being a household's primary
breadwinner.
Would you marry, or have you ever married someone who makes less
money than you do?
80%
75%
70%
60%
50%
40%
25%
30%
20%
10%
0%
Yes
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No
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Impact of the Economy on the Black Family
Solutions for Improvement
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Impact of the Economy on the Black Family
Most Black women believe the U.S. is ready for a Black president, but those
18-29 are less sure.
Do you believe that the country is ready to elect its first AfricanAmerican president in the fall of 2008?
80%
71%
70%
60%
50%
40%
30%
18%
20%
11%
10%
0%
Yes
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No
I am not sure
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Impact of the Economy on the Black Family
Black women believe finding a solution for rising gas prices and electing
Barack Obama as President provide the most hope for their futures.
Select the top 2 solutions that provide the most hope for improvement in
the future of you and your family.
Other
9%
Better health care coverage for all Americans
Improving education
36%
18%
End of the war in Iraq
26%
Solution for escalating gas prices
End of housing crisis
Election of Barack Obama as U.S. President
50%
16%
46%
0% 10% 20% 30% 40% 50% 60%
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Impact of the Economy on the Black Family
Nearly two-thirds of Black women who responded to our survey said they
are able to save a portion of their take-home pay.
How much of your current take-home pay are you able to save?
33%
35%
30%
25%
20%
17%
17%
18%
15%
10%
10%
4%
5%
0%
Over 10%
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5-10%
2-5%
Under 2%
None
I have no
idea
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Impact of the Economy on the Black Family
Wachovia brought the highest name recognition among survey respondents, many
of whom subscribe to our Wachovia Way2Save-sponsored newsletters.
Are you aware of specific savings programs offered by the following
companies?
90%
78%
80%
70%
83%
78%
63%
60%
50%
40%
Yes
No
37%
30%
22%
20%
17%
22%
10%
0%
Wachovia
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Chase
Wells Fargo
Washington
Mutual
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Impact of the Economy on the Black Family
Taking on a second job and starting a savings plan are among the more
popular financial options Black women are considering over the next 90 says.
What action are you planning to take in the next 90 days to improve
your family's financial position?
I do not plan to make
any changes
33%
Cash in on
investment/savings
6%
Incorporate a savings
plan
17%
Secure some financial
planning advice
11%
Take on a second job
27%
Refinance our home
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5%
0%
5%
10%
15%
20%
25%
30%
35% 27
Impact of the Economy on the Black Family
Not surprisingly, the Web is the primary source of financial advice and
information for the respondents to our online survey.
What source do you use to educate yourself on financial issues and
solutions?
None of the above
7%
TV
Family members or
friends
16%
8%
Web
44%
Financial
magazines
Newspaper
0%
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14%
12%
10%
20%
30%
40%
50%
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Summary of Findings
When considering the Black woman consumer in 2008, this phrase from
President Bill Clinton's 1992 campaign applies: It's the economy, stupid.
Pocketbook issues (food and fuel prices, cost of health care) trump larger
political concerns (the war, the environment) in the minds of Black
women right now. Black women with children are more likely to also be
concerned with better education and less violence.
Black women are tightening their belts--especially with regard to eating
out or making major purchases--and are worried about their debt.
With regard to media images, Black women see the most negative ones of
themselves coming from TV and online. Magazines are the media
vehicles that present the most positive messages.
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Profiles
Meet Confident Ciara (18-39)
o Tends to be optimistic about the future…
o …Yet focused on making ends meet here and
now
o Food and fuel costs are big concerns, less so
the war
o Easier for financial marketers to connect with
online
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Profiles
Meet Established Edwina (40+)
o Views the future with cautious expectations
o Hitting her stride financially
o Puts more stock in Obama's ability to
improve her future
o More likely to spend her tax rebate check
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Conclusion
Marketers trying to reach Black women right now
should look for price sensitivity, value for the money
and changing travel patterns. Although past
NiaPulse/-TMN research (the Black Consumer
Confidence Index) shows that Blacks are always more
optimistic than Whites about making big-ticket
purchases in the near future (next 90 days), right now
the focus among Black women is on paying existing
bills.
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Call To Action
o As concern over gas prices affects travel patterns, businesses must
adjust, and offer alternatives to traditional shopping patterns
o Grocers and packaged food companies must answer price/value
concerns that meet the needs of the Black family
o Value for the money is the new mantra
o Dining service providers must answer price concerns with
creative, relevant promotions, value based meals
o Financial service providers have an opportunity to connect with
consumers who are looking to save more, tackle debt and create a
plan for their future
o Career search and temp companies will find opportunity with
those seeking second jobs
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Organizations
The Black Women’s Expo Leadership Summit and Phenomenal Woman Awards Luncheon, August 1-3
Recognized industry leaders and experts in various disciplines will tackle the complex issues facing those in leadership
positions, and those who aspire to lead, through dynamic workshops and panel discussions. Seminar topics include: Building
a Leadership Legacy; Turning Passion into Profit; Leading in Today's Political Arena; The New Glass Ceiling; and more! The
Phenomenal Awards Luncheon will recognize phenomenal women making significant contributions in the African-American
community. This event will be held at the McCormick Place – North Building, 2301 S. Lake Shore Drive, Chicago, IL.
http://www.theblackwomensexpo.com/expo/index.html
The National Black Women’s Town Hall Meeting, July 11
Dr. Dorothy Height and Blanche Williams convene the first annual 2008 National Black Women’s Town Hall Meeting. In 2008,
Black women face a new set of forces designed to cripple the potential of future mothers, scholars, and visionaries. Leading
Black women’s organizations, educators, visionaries and activists will discuss the pressing issues that are facing Black
women. This event will be held at 633 Pennsylvania Ave., NW Washington, DC. (202) 497-4564
National Council of Negro Women
The National Council of Negro Women (NCNW) is a council of 39 affiliated national African-American women's organizations
and over 240 sections—connecting nearly 4 million women worldwide! The NCNW’s mission is to lead, develop and advocate
for women of African descent as they support their families and communities. Their mission is fulfilled through research,
advocacy and national and community-based health, education and economic empowerment services and programs in the
United States and Africa.
http://www.ncnw.org/
National Congress of Black Women, Inc.
The National Congress of Black Women, Inc. (NCBW) is a nonprofit organization dedicated to the educational, political,
economic and cultural development of African-American women and their families. NCBW also serves as a nonpartisan voice
and instrument on issues pertaining to the appointment of African-American women at all levels of government, and to
increase African-American women's participation in the educational, political, economic and social arenas.
http://www.nationalcongressbw.org/
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What’s New 08!
Core business realigned into 3 focus areas: Research, Community,
Targeted Marketing
Online Research
- NiaPulse multicultural research
portal powered by GMI
- Launch of online focus groups
Nia Interactive Media
Community
-Redesign of NiaOnline
-Launch of NiaPedia
-Launch of Daily news Blog Girl, get
me started
Targeted Marketing Offerings
-Nia Lifestyle Guides/Daily Fixations
-Syndication and custom media
offerings
-Specialty Guides: Platinum Cents
(Money Management), The
Brothers’ Room, Chic Passage
(Travel) Special Edition Silent Buzz
HBCU events
NiaOnline Blog: Girl, Get Me Started!
NiaPulse
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NiaPedia
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What’s New!
NiaOnline Blog: Girl, Get Me Started!
Nia Lifestyle Guide: Platinum Cents
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Nia Lifestyle Guide: Mommy Moods
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Nia Activism
NiaOnline Extra: NY Paper Prints Racist Obama Parody
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GGMS BLOG: Tell the FCC Michelle Obama’s No ‘Baby Mama’!
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About Nia Enterprises
Nia Enterprises, LLC is an online community and research/marketing services company founded in January 2000. The
company provides opt-in, permission-based marketing data solutions related to growing and diverse markets. It also
provides the largest online Consumer Advisory Panel of people of color with a specialty focused on African-American women
and their families. This opt-in, permission-based panel offers companies a direct link into the buying habits and consumer
preferences of the largest ethnic buying power groups.
Our offerings include NiaOnline.com, the NIA Lifestyle Guides, an online Consumer Advisory Panel: NiaPulse reaching over
200,000 multicultural household members, NiaOnline® Quick Response Omnibus, NiaOnline Research Monitors, diversity
consulting and event-based solutions. New offerings launched in spring 08 include the largest online library of original content
for black women, Nia Pedia and daily news blog, Girl, get me started and on-line focus groups .
The company is 100 percent minority-owned and operates through two online platforms: Research---NiaPulse
(www.niapulse.com); Nia Interactive Media which includes community---(www.niaonline.com); and Targeted Marketing
Solutions---NIA Lifestyle Guides (www.nialifestyleguides.com). The online properties of Nia Enterprises are designed to
create a direct link and trusted dialogue with people of color while serving as a feeder to the company's Consumer Advisory
Panel. Nia Enterprises is headquartered in Chicago and also has offices in New York. More information on its services is
available at www.niaenterprises.com.
Contact
Nia Enterprises, LLC
23 W. Hubbard Street, Suite 200
Chicago, IL 60610
312.222.0943 (p)
312.222.0944 (f)
www.niaenterprises.com
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Thank You
Questions and Answers
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Cover Photo Credits
“State of the Dream 2008 ”
Image courtesy of 2008 United for a Fair Economy
“Gas Station”
Image courtesy of MacNeil/Lehrer Productions
“Ames Rally at Hilton Coliseum, Ames, IA, 02/11/07”
Image courtesy of Obama '08
“Tech. Sgt. Lisa Zunzanyika, photographer with the
447th Expeditionary Communications Squadron”
Image courtesy of U.S. Air Force
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Nia Enterprises