Friends rank as the largest influencing factor in the purchase decisions of video games, according to a study released recently by global integrated communications agency Waggener Edstrom Worldwide, Annenberg School for Communication & Journalism at the University of Southern California, and Harris Interactive. Industry trade groups say the video gaming software industry represented sales of more than $11 billion in 2008, and games were expected to be a hot item for the 2009 holiday season gift-giving.

The study indicated that word-of-mouth influence, led by friends, was three times as likely to influence the purchase of video games as traditional forms of advertising and promotion.

The data proved that word of mouth ranked highest of all methods buyers used to make purchase decisions. This was followed by retail, online demos, reviews, and advertising and promotion. When the word-of-mouth category was examined further, the data revealed that friends were approximately twice as likely to influence the purchase decision as family members. Friends were also among the most trusted of all forms of purchase influence.

The study also identified a highly influential segment of gamers or “Influence Multipliers.” These Influence Multipliers represented 21% of all gamers in the sample, but report an inordinate impact on the purchase decisions of their family and friends when buying video games. Influence Multipliers are veteran video game players, the most networked members of the gaming community, and their friends and family rely on their opinions when buying video games.

“Compared to all video gamers, Influence Multipliers are a hyperinfluential subset of friends who are also far more connected to other gamers,” said Dan Gallagher, senior vice president, Insight & Analytics at Waggener Edstrom Worldwide. “As a result, Influence Multipliers have an outsized network influence effect on their gaming colleagues. By targeting the media channels that Influence Multipliers rely on, marketers can optimize their marketing spending.”

Study conducted by Waggener Edstrom Worldwide in conjunction with the Annenberg School for Communication & Journalism at the University of Southern California, and Harris Interactive, December 16, 2009.  Website: www.waggeneredstrom.com.

We’re planning to keep our purses snapped shut and our wallets firmly lodged in our back pockets. Mintel Comperemedia, a service that provides direct marketing competitive intelligence, predicts that in 2010, consumers will continue saving money at an elevated rate.

The recent Federal Reserve Z.1 Flow of Funds report shows Americans still saving and reducing debt at levels far exceeding recent years. The penny pinching isn’t unconscious; in August 2009, nine in 10 adults (86%) told Mintel they plan to be more conservative with their money in the future. Another 75% agreed they’d be more cautious about borrowing money from now on.

“Our recent consumer surveys point to a changed mindset for consumers,” states Susan Menke, behavioral economist for Mintel Comperemedia. “The recession left people feeling shaken and vulnerable, wary of previous years’ spending binges and craving a more conservative approach to money. We expect that thrifty, save-for-a-rainy-day mentality to continue (in 2010).”

Susan Menke points out that this is the first major recession experienced by adults under age 45, giving them real-life experience of the anxiety produced by economic uncertainty. “The recession came as a shock to younger generations, but the positive effect is that they now feel motivated to save and invest,” comments Susan Menke. When Mintel asked survey respondents about investing money, 57% of 18-24 year olds said they wanted to learn more, compared to 49% of all age groups.

Another reason Mintel Comperemedia believes frugal ways will stick-at least through 2010-is that the 24/7 news about this recession made it feel “real” to Americans of all ages. Nearly 60% of adults told Mintel that constant media coverage had contributed to their feelings of stress during the recession. In April 2009, only 17% of adults said the economic situation hadn’t impacted their spending.

“Consumers’ newfound financial conservatism presents many opportunities for financial services companies. As people look to save money and reduce debt next year, companies can benefit by gathering assets and building relationships with customers. Banks could also position themselves as advisors poised to help people build wealth and security in the new economy,” says Susan Menke.

Data compiled by Mintel Comperemedia, December 11, 2009.  Website: www.mintel.com.

The number of people in the United States with diabetes will nearly double over the next 25 years, while spending on the disease will nearly triple, according to a new report by researchers at the University of Chicago.

According to the study, 44.1 million people will have diabetes in 2034, while spending on the disease will total $336 billion. Those figures currently are 23.7 million and $113 billion, respectively. Meanwhile, Medicare patients with diabetes will more than double, from 6.5 million to 14.1 million, while Medicare spending will go from $45 billion in 2009 to $171 billion in 2034.

“Obesity is a significant driver of future increases in the number of Americans with diabetes,” University of Chicago National Opinion Research Center researcher and study author Michael O’Grady said in a statement. “While our modeling, as well as that done by the Centers for Disease Control and Prevention, project obesity rates leveling off, neither model has obesity rates lowering substantially.”

The researchers used a model that considers factors not used by government budget analysts, including natural progression of the disease, effects of treatment and U.S. obesity rates.

“High obesity rates among the American population over an extended period of time substantially increases the probability of developing Type 2 diabetes,” O’Grady said.

Despite the significant increase, retail pharmacies have the opportunity to help bring some of those costs down.  According to analysts, pharmacists and employers can work together to help diabetes patients manage their disease and ensure they remain compliant with medication regimens, thus helping to reduce costs.

Study conducted by drug maker Novo Nordisk through its National Changing Diabetes Program,  December 2009.  Website: www.novonordisk.com.

With less disposable income to spend for travel and vacations, more American consumers are spending more time at home and investing in home and garden beautification to make their little corner of the world a more enjoyable place to be.

In a recent survey of 1,000 U.S. consumers for Kline’s study The Impact of the Recession on the U.S. Non-crop Pesticide Markets, 2009-2014, nearly 50% of respondents said they already purchase gardening products, nearly double the incidence of any other specialty pesticide category. Plus, gardening was the only consumer pesticide product or service category to show an increase in purchases during the 2008-2009 slowdown.

In fact, 42% of users said they have increased spending on garden products during the economic crunch, by an average of 25%. This welcome news has helped to keep the forecast growth rate in gardening products 1% to 2% above the other consumer pesticides. While nearly every other category is expected to post flat real growth with only price increases for growth, gardening is predicted to grow by more than 4% over the next five years.

Meanwhile, 18% of respondents in the representative sample reported that they currently buy home lawn care services, both mowing and chemical application. Another 12% have not purchased for 12 months, a pretty good indication that they have dropped the service. However, only an additional 1% planned to drop it in the future, while 11% planned to enter the market, an indication that the market decline has flattened and is positioning for growth once again.

The take-away message is that even in a down economy, new customers are making plans to enter or re-enter the lawn care service market. Marketers who develop plans to accommodate the new entrants will gain share once the economic rebound. Additionally, 44% of respondents have never purchased the service, a fact that presents an opportunity for marketers.

For service providers, the key to converting those non-buyers into customers lies in understanding and playing to consumers’ desires for a more enjoyable home environment – a lusher and greener lawn worthy of a “staycation,” at an affordable price. In this kind of sales conversion strategy, demonstrating return on investment is critical-potential customers must understand that the price they pay for the service is worth the benefits they will reap, and services must be packaged to deliver value to potential new users.

Similar to the lawn services market, an opportunity exists for DIY consumer lawn products marketers to reach non-buyers. In Kline’s survey, 23% of respondents reported that they never buy lawn products, which amounts to untapped potential for suppliers and marketers. To increase product sales, market share and profitability, marketers must not only understand why customers do buy, but also why they don’t. Is it a lack of understanding or appreciation for the results? Concerns about efficacy, safety, or cost? By specifically addressing the reasons customers don’t buy, marketers in this segment can be more effective in changing that position.

“The Impact of the Recession on the U.S. Non-crop Pesticide Markets, 2009-2014,” conducted by Kline & Company, December 2009.  Website: www.klinegroup.com.