VALS™ Lens Applying VALS™ to current events March 2015
In this issue:
In Shame: NBC's Brian Williams
On 4 February 2015, the military newspaper Stars and Stripes reported that Brian Williams, NBC Television's acclaimed nightly news anchor, exaggerated his account of a helicopter journey in Iraq. Further, his reporting of Hurricane Katrina is also in question. Other media have been quick to report on Williams's downfall. NBC has determined that Lester Holt will replace Williams—whom NBC suspended without pay for six months—at the evening news desk. Williams's weak public apology is not bolstering public confidence; NBC viewers expect accurate, truthful reporting. The VALS™/GfK MRI spring 2014 study reports the NBC Nightly News average audience at roughly 17 million, or 7% of US adults. Thinkers and Believers are more likely than average to watch. The groups share an Ideals motivation; with strongly held principles about how the world should work, they are not likely to forgive Brian Williams. Williams may be off the air for good.
In Finance: Monthly Disposable Income
Before the 2014 holiday-sales period, many economists and government officials predicted that lower gasoline prices would result in a healthy Christmas season for retailers. They didn't. In fact, according to the National Retail Federation, retail sales increased a very modest 4%. Why? Because 57% (according to the 2012–13 MacroMonitor) of households have less than $500 in disposable income in a typical month, and for many of them, savings at the pump went to pay bills. Some 82% of Survivors, 77% of Strivers, and 68% of Believers have less than $500 a month to spend on nonessentials. Granted, these groups are not big spenders in the best of times. However, for households "most likely to buy," 23% of Innovators and 42% of Achievers have less than $500 a month to spend.
View a mini-presentation about US household credit-use trends between 1986 and 2014
In Retail: I Love My Pet
The National Retail Federation estimated that for Valentine's Day, Americans would spend $700 million on presents for their dogs and cats. According to reports in various media, pet products (including food, care, and toys) are the fast-growing retail category in the United States. The US Bureau of Labor Statistics' 2011 Consumer Expenditure Diary reports that households spent more on pets than for alcohol or men's and boys' clothing. The average household spend was $500, totaling about $61.4 billion. To illustrate, in the past 12 months, households bought an average of 22.5 pounds of dry dog food; bought 12 pounds of dry cat food; used 5 pet services, such as day care, boarding, grooming, and training; and made 2.6 visits to a vet. On average, Innovators bought the most dry dog food (26 pounds) and made the most trips to the vet (3), Makers bought the most dry cat food (14 pounds), and Thinkers used the most pet services (6). Add the costs of wet pet food, litter, toys, and treats for a sense of the magnitude of the pet industry.