In today's marketplace, consumer shopping preferences and needs continue to fragment as a result of changes in demographics and value systems. These changes are making customers harder to define, categorize and reach. As population distribution shifts to the tail ends of consumer age groups, retailers face new challenges in satisfying these very diverse groups. Those retailers who gain a deeper understanding of select segments can more successfully address this fragmentation and the opportunities that exist.

To provide insights into this complex marketplace, we studied the in-store and Internet-based shopping preferences of two very diverse segments – teenagers and baby boomers. We chose boomers because of their sheer size (78 million between the ages of 41 and 60)1 and economic clout (50 percent of all U.S. spending),2 and teens because of their window to the future of retailing and their expected spending power (US$176 billion in 2006).3

Our research revealed teens as wired, social beings that rely on connections with and approval from friends and peers. These young shoppers live comfortably with technology and are highly informed consumers. On the other hand, boomers are deliberate shoppers who rely on brand trust and have very diverse value drivers. These experienced shoppers seek convenience and a good value and are working their way up the technology curve.