VALS™ Lens Applying VALS™ to current events February 2014
In this issue:
In Advertising: Mockery
In a sea of adverts from cell-phone service providers touting coverage and price, Sprint's 2013 holiday commercials stand out because they employ mockery to garner attention. In recognition that "everything you do is important," the TV commercials feature veteran actors James Earl Jones and Malcolm McDowell to honor cell calls, texts, Facebook activity, and auction posts. "Importance" is generated through the actors' gravitas as they dramatize each activity. Sprint's current customer base is varied. However, Experiencers, Achievers, and Strivers (in rank order) are more likely than average to be current Sprint customers. The commercials have LOL appeal to Innovators because Innovators are self-confident enough to laugh at themselves. Whether current customers will recognize the actors or be amused is unclear. Sprint may be trying to expand its customer base to include more Innovators.
In the Dumps: American Idol
January 2014 marks the thirteenth season of American Idol; this season's judges are Harry Connick, Jr.; Jennifer Lopez; and Keith Urban. The New York Times (17 January 2014) reports that the program's audience is down 22%—a fall from a 6 rating for the 2013 premier to a 4.7 rating for core viewers between the ages of 18 and 49 in 2014. Total viewer numbers decreased from 17.9 million to 15.2 million during the same period. The program continues a slow decline. To illustrate, in 2004 (season 2), the average audience for Idol was 9% of US adults, according to VALS™/GfK MRI data; Experiencers were more likely than average to view. By 2009 (season 7), 11% of adults (on average) viewed Idol. However, Experiencers were only average viewers and Believers became higher-than-average viewers. In 2013 (season 12), with only 6% of adults viewing on average, Believers continue to be above-average viewers; Experiencers are now less likely than average to view. No wonder American Idol is in the dumps for viewers between the ages of 18 and 49. Believers are loyal, even though they don't help Fox gain audience between ages 18 and 49. After 12 seasons, Experiencers are bored despite increasing contestant drama and use of flashing lights.
In Cruising: Strong Headwinds
Two major cruise-line disasters in 2012—the sinking of the Costa Concordia and fire on the Costa Allegra, both owned by a Carnival Cruise subsidiary—did not result in a collapse of bookings as one might expect, reports the Economist (11 January 2014). Revenues of the three major cruise-ship operators—Carnival, Royal Caribbean International, and Norwegian Cruise Lines—took a ding but are bouncing back. Americans lead in cruising. The European market is stagnant because of continuing economic woes. Operators are looking to Asian markets to for growth. In addition to facing the challenge of bookings, Carnival and Royal Caribbean are facing strong headwinds from small- and specialty-cruise operators. For example, operators that specialize in niche markets such as the over-50 crowd (worldwide 40% of first-time cruisers are younger than age 40), single-language cruises, and themed cruises such as Disney-cartoon-themed cruises have wind in their sails. In the United States, between 2004 and 2013, the incidence for cruising in the past three years is unchanged at roughly 8% of all US adults. Thinkers, Innovators, and Achievers (in rank order) are more likely than average to take a cruise lasting more than one day; these consumers are the most likely of all consumers to have the money and time to do so.