practice paper 21st-century consumer society

Keywords:

High Ì', Low Ì',

iSociety

Melanie HowardThe Future

Foundation,

14±16 Cowcross St,

London, ECIM 6DG,

UK

Tel: �44 (0)20 7250

3343

Fax: �44 (0)20 7251

8138

e-mail: melanieh@

futurefoundation.net

Practice Paper

21st-century consumer societyReceived (in revised form): 9th March, 2001

Melanie HowardCo-founder, The Future Foundation. The Future Foundation is a future-oriented

commercial think-tank which advises companies on better ways to market to, and

communicate with, their customer base. The Future Foundation research into

changing social values and consumer behaviour began in 1996 with Changing Lives,

proprietary research into emerging values. It continued in 1997 with The 24-Hour

Society, a review of the extending hours of consumer culture, undertaken on behalf of

First Direct and BT. This was followed in 1999 with What Next, an exploration into the

key trends in society and consumption, and then iSociety, an analysis of the structural

and attitudinal shifts which shape the new social era, both on behalf of First Direct.

Jane MasonMarketing Consultant and co-founder, The Future Foundation.

AbstractThis paper looks at how society has changed over the past ten years in terms of individualvalues, aspirations and consumer behaviour patterns, and relates these to underlyingdemographic, economic, technological and social trends.

It summarises ®ndings of research undertaken by the Future Foundation. The researchidenti®es six Ì' factors, which, together, help to explain the different ways in whichindividuals are choosing to take control over an increasing number of areas of their lives.The most prominent of these are the desire for and reality of independence; individuality Ðthe growing politics of difference; the changing nature and sources of identity; andinterconnectedness Ð access to and use of information. The others are interactivity andimagination.

It concludes that High Ì' values, although realised by a minority today, are aspired toby the majority and that all the economic, technological and attitudinal conditions are ripefor the ìSociety', as it is called, to ¯ourish and develop substantially over the next decade.

INTRODUCTIONIn the past decade the face of many

markets has altered to re¯ect changes in

the fabric of Britain as a consuming

society. The tastes and styles of the

1980s seem so dated on entering the 21st

century Ð but do we have different

values, do we behave differently as

individuals, as consumers, as citizens,

as employers or employees, as friends

and family? If so, how?

The research reported here set out to

explore how society has changed over

the past ten years in terms of individual

values, aspirations and behaviour

patterns, and how these relate to

underlying demographic, economic,

technological and social trends.

OBJECTIVES AND METHODOLOGY

Building on the ®ndings of previous

research by the Future Foundation (see

the authors' biographies above for

further details), the following

hypotheses formed the basis for the

theory of the 21st-century consumer

society, perhaps appropriately called

the ìSociety'.

People have adopted a different and

more complex perspective of

94 Journal of Consumer Behaviour Vol. 1, 1, 94±101 #Henry Stewart Publications 1472-0817

themselves in relation to the wider

world, which is reshaping our view of

our lives and society.

Rather than focusing on work, money

and material acquisition for satisfaction,

as we did at the height of the Thatcher

era (under the illusion of continuing

strong economic growth), we are

looking for new forms of ful®lment and

sources of identity in a range of

activities and values beyond these.

People who are able to achieve a basic

level of af¯uence are now more

concerned with expressing their

individuality and being independent Ð

both mentally and materially.

Labour's commitment to welfare state

reform has reinforced the fact that there

will be no real safety net provided by

the government in the competitive

global economy. As a society we now

accept that we have to take ®nancial

responsibility for ourselves.

While still focusing on ourselves, we

are more informed about other people

and the issues facing the world. This has

resulted in a more outward-looking

perspective and a desire to ®nd new

ways of creating a fairer society that is

good for us and for other people.

A new synthesis is emerging; just as

the differences between right and left

are blurring, so the division between

sel®shness and altruism is becoming

less clear. It is possible for today's

educated consumers to consciously

satisfy themselves and begin to do

`good' at the same time.

Society is therefore moving from the

`Me' society (where everything is done

for self-advancement without concern

for others) to the Ì' society, in which we

are able to express ourselves, be

independent and play our part in the

wider world.

To explore how these abstract

concepts have been translated into

concrete behaviour on the part of

consumers, six Ì' factors were

identi®ed. Together, it was believed

these would help to explain the

different ways in which individuals are

choosing to take control over an

increasing number of areas of their

lives. The most prominent of these were

the desire for and reality of independence;

individuality Ð the growing politics of

difference; the changing nature and

sources of identity; and

interconnectedness Ð access to and use of

information. The others were

interactivity and imagination.

To test the above theory quantitative

consumer research was conducted by

PAS (Public Attitude Surveys). The

®eldwork covered a representative

sample of 1,000 of the UK population

aged 16±65 years. Additional research

to test the hypothesis is also conducted

by the Future Foundation on a regular

basis in their six-monthly `Changing

Lives Survey' which is based on a

sample survey of 1,000 adults.

An index was constructed in order to

analyse the responses, selecting a

number of behavioural and attitudinal

questions which were considered to

epitomise the iSociety theory. A high

response to one indicator matched a

high response to another, and vice

versa.

These ®ndings were explored further

in focus groups.

FINDINGS

The ®ndings positioned the population

on a continuum, from Low Ì' to High Ì'

(Figure 1):

Ð Low Ì's are more attached to

traditional gender roles,

materialistic, crave certainty and job

security.

Ð High Ì's pursue independence, both

®nancial and work related; are

individualistic but not ¯ashy;

combine idealism with pragmatism;

and are well informed with access to

the Internet and other emerging

communications methods.

So High Ì's are distinguished by

similarities in values, rather than by

socio-demographic criteria such as

education, class or age. In fact, High Ì's

Journal of Consumer Behaviour Vol. 1, 1, 94±101 #Henry Stewart Publications 1472-0817 95

21st-Century Consumer Society

are just as likely to be men or women,

young or middle-aged. However, they

are more likely to be working and have

access to the Internet.

An understanding of these emerging

`I' values in society, realised by a

minority today but aspired to by the

majority, is relevant for both

practitioners and theorists alike.

INDEPENDENCE

Work-Related IndependenceThe shift towards a global networked

service-led economy has brought

changes in the labour market. Those in

manufacturing have seen job

opportunities dwindle, expectations of

specialised skills rise, and the pressure

of global competition. Across the board,

individuals can no longer make

assumptions about the relationship

between their education and their work,

their career progression through life or

the relationship between themselves,

their employers and the state.

In bright contrast to this grim picture,

there is a heartening spirit of enterprise

in the air. Many in the iSociety,

especially young people, dream about

setting up their own business and a

surprising number actually plan to do

so sooner rather than later. While the

main barrier is seen as ®nancial, a

strikingly low proportion of would-be

entrepreneurs claim a lack of con®dence

or the need for ongoing ®nancial

security is holding them back.

Where High `I's are leading in this

emerging world of work, others will

follow. The outlook for individual

enterprise in the form of small

companies and self-employment looks

more promising now than at any time

during the last 20 years. Large

companies are continuing to downsize,

de-layer and outsource, encouraging the

growth of `feeder' businesses. The

availability of ¯exible and mobile

contract workers is causing them to

question staff retention strategies.

Knowledge workers of the iSociety will

¯ourish as information skills become

increasingly valued and the costs of

communications and computers, the

tools of knowledge workers, continue to

fall. The outsourcing of these skills, to

the self-employed or small companies,

with their ¯exibility and adaptability,

bene®ts both parties.

Young people are more likely than

traditional roles

jobs for life

certainty

independence

individuality

interconnected

idealisticmaterialistic

Source: Future Foundation /First Direct ; iSociety

Figure 1: The emerging values in the iSociety


Melanie Howard and Jane Mason

any other group to want to run their

own business; they take high

responsibility for lifetime training

needs, and like the idea of changing

their jobs. Young people entering the

workforce in recent years do not expect

job security or a state safety net as their

parents might once have done. With

their advanced skills in communications

technology, too Ð students being the

group with the highest exposure to new

media and new technology Ð the

educated, wired young can expect to

shape the world of work according to

their own imagination.

Changing Careers

The desire to strike out alone in

business does not indicate collective

dissatisfaction with the current situation

Ð far from it. For most, work is an

important source of identity, especially

for women and High Ì's, but large

numbers have already experienced a

radical job or career change Ð again,

High Ì's more so than most Ð and

those that claim to be more satis®ed

with work than the job-for-lifers. Self-

determination and independence, then,

are key and higher levels of satisfaction

are likely to be linked to greater

entrepreneurialism.

Responsibility for Training

Quali®cations have long been seen as a

passport to employment. But there is a

new climate emerging, one in which

continuing, self-motivated, often self-

funded education is the only way to

stay in employment. For High Ì's an

appetite for constant evolution,

anticipating the changing needs of the

labour market, will be part of the

challenge that the world of work has to

offer.

By contrast, the skill sets of Low Ì's

will slowly but surely become obsolete.

In this respect, young people have

clearly absorbed lessons in self-reliance

and reinvention from positive role

models Ð and older workers have seen

many of their assumptions challenged

and overturned.

Financial Responsibility

Deregulation and new entrants,

particularly the supermarkets, have

shaken up and opened up the ®nancial

services market. It has responded to

changes in consumer behaviour and

desire for access to extended hours

services. Ownership of ®nancial

products is now widespread. Although

some report dif®culties in making ends

meet, most people say that they actively

enjoy managing their ®nances.

High Ì's have absorbed the

philosophy of the need for self-

determination and responsibility in

®nancial affairs as in other areas of the

private and public economy. They are

more likely to agree strongly that the

individual should assume responsibility

for their own ®nancial affairs.

There is a clear difference of views

between younger and older consumers.

Younger consumers live a credit/

savings paradox which enables them to

respect saving, displacing or forgoing

immediate grati®cation, and at the same

time indulge their `have it now,

whatever the cost' impulse. Younger

consumers think that credit is such a

natural feature of the consuming

landscape that there's something wrong

with you if you don't use it. They use

their credit card to manage day-to-day

®nances Ð a ¯exible friend indeed.

Older consumers don't talk about credit,

but debt.

INDIVIDUALITY

ShoppingAs young people become ®nancially

independent for the ®rst time, they

behave quite unlike other groups in the

population as they test out their wings

as ®rst-time buyers for a range of

products and services. Less time

constrained, they like shopping more

and are less troubled by ethical issues

despite their awareness of these, as the



background debate has intensi®ed in

the past few years.

As part of their need to express their

newly independent identities and to

`stand out from the crowd', without the

bene®t of the experience and con®dence

of age, young people are keener on

designer labels than other age groups

and are less impressed by role models.

They are the most rampant consumer

group, looking most like the status

conscious `yuppies' of ten years ago.

This rampant consumerism is not

consistent with High Ì'ness which

requires a threshold level of af¯uence to

take the individual beyond worries

about day-to-day living. It is more likely

to be due to inexperience and lack of

money. As such, it is likely that

increasing numbers of young people

will gain in Ì'ness with maturity.

IDENTITYFamily Life

It is evident that the structure and

composition of the population is

changing and this will affect the way we

live and work in the future. The

population is ageing, and as women live

longer than men, there will be more

elderly women, many living alone, in

the near future.

For many, family life has become

more ¯exible, with divorce and

remarriage contributing to changes in

family structures and living

arrangements. Many women are having

children later, if at all. Therefore for an

increasing number of women the family

phase is either comparatively shorter or

skipped altogether.

Earlier research showed that the

family, far from being an outmoded unit

past its social sell-by date, is still

emotionally central to most, despite or

perhaps because of greater experience

of upheaval and change. However,

family life has changed beyond

recognition for many Ð but this is not

necessarily viewed negatively.

Women are more positive about

changes in family life, agreeing that it is

more open and that people have more

freedom nowadays. High Ì's in

particular approach their family

relationships as open partnerships and

in family life have accepted all the

positive aspects of this new social

reality.

While taking economic responsibility

and enjoying their independence, young

people are wary of giving up freedom to

settle down and have children Ð which

they see as being a sacri®ce of income,

time and spontaneity.

Friends

But an important minority already gain

more support from friends than family.

High Ì's are happier than most to live

on their own rather than in a family. In

the iSociety, it is likely that friendships

will come to assume more importance

in our lives and family will be one

source of emotional support among

many.

Egalitarianism

High Ì'ness is a state of mind, re¯ecting

an increasingly empowered, egalitarian

society. The emerging iSociety, with its

acceptance of a fair distribution of

responsibilities and rewards, is likely to

bene®t women.

Gender Roles at WorkIt is women who have been most

affected by social changes in the past

few decades. Women now outnumber

men throughout the educational system

and in many areas girls are

outperforming boys. Education has

been a passport to employment for

women Ð and a ticket to work. Young

educated women are the most desirable

candidates on the labour market. In a

number of professions the entry-level

number of women has equalled that of

men and the greater part of new jobs

created in service industries are being

taken up by women Ð and recently,

®ttingly, in the new Labour

government.

While pronounced income



differentials still exist, and women are

still under-represented at senior

management level, some female

segments are actively participating in

the activities shaping society. Typically

these will be the more successful,

educated, technologically empowered,

younger women, who are snatching all

the opportunities that are available to

them and catching up on the higher

wages and status of their male

counterparts. As far as gender

differences in the iSociety are

concerned, then, is it possible that the

High Ì's of the future will be female?

Gender Roles at Home

However, working women with a

family are still among the most time-

constrained groups in society today,

bearing the brunt as they still do of

domestic tasks in the home and primary

child care. While lip service is paid to

the idea that men are just as capable as

women of bringing up children, High

Ì's are more likely to agree that the

division of duties in the home should be

a matter for discussion and negotiation.

Admittedly, there is still a `rump' of

traditionalists who support the old

gender roles and allocation of ®nancial

responsibilities. These are to be found

among the young as well as the old,

among women as well as men.

Increasingly in the iSociety, especially

given women's success at work and the

gradual convergence of incomes, it is

probable that these traditional views

will hold less sway. Individuals who

have come to appreciate their

independence within the workforce will

be reluctant to relinquish it in the home.

Time Versus Money

There is a widespread perception of

time pressure, conditioned to a certain

extent by family lifestage and working

status. The notion that `time is a

currency' Ð that we should invest and

save it, rather than merely allowing it to

pass by Ð is more than just a metaphor

in the iSociety. Among the most time-

pressured people in society, High Ì's

would trade time for money and take a

pay cut for an extra day off a week.

Hence, High Ì'ness requires an

af¯uence threshold to be achieved. This

may explain why the iSociety is not yet

the experience of the majority.

There is widespread desire to

outsource personal chores Ð but an

appreciable number of people who

would under no circumstances pass

domestic responsibilities to someone

outside the household, whatever the

time saving, through desire to retain

control.

Although it may seem contradictory,

in all other areas, the desire for control

among High Ì's has largely liberating

consequences. They are fearless

pursuers of information, independent

decision-makers, and risk-embracing

entrepreneurs. Is the home the last

bastion of personal in¯uence, then, and

the one which High Ì's are prepared to

keep private? Is this particular desire for

control holding them back?

INTERCONNECTEDNESSMobiles and Modems

No one can deny that the Information

Society is taking hold across the world.

We see evidence of this throughout the

media and in the changing way that

people communicate with each other

and with companies. Communications

technology has revolutionised the world

of work in the i(nformation)Society.

Access to distance-shattering

technology is almost universal among

educated, af¯uent consumer groups,

and this is expected to spread through

society as prices plummet and

processing power explodes. Once again,

women are rapidly catching up with

their male counterparts. They tend to

have exposure to communications

technology in many service industries,

and are keen Internet adopters, with

new female subscribers set to overtake

men in the US in a couple of years.

High Ì's are not just connected Ð

they're hyperlinked. Not only do they



tend to have far greater access to new

technology, both at home and work;

they are also much more likely to have

several mobiles and modems. The

trickle down effect has profound

implications for junior High Ì's, who

are likely to be the bene®ciaries of their

parents' desire to upgrade.

Information OverloadConsumers ®nd themselves literally

`spoilt' for choice these days. So much

so that even rising af¯uence levels are

unlikely to herald a return to the heady

consumerist days of the 1980s. (From

the attitudes of young consumers, you

might think Britain had never

experienced a recession.) It is a case of

ònce bitten, twice shy'.

Many consumers today question the

messages and images associated with

the brands and products they have

purchased. They are also ready to

challenge what companies say about

their ethical, environmental and

employment policies. Consumers are

being bombarded with artfully

packaged information. Shopping is

becoming more like decoding. Trusted

third parties are being called upon to

help navigate potential mine®elds.

These are most likely to be friends who

have experience of the product or

service we are interested in. In the light

of this, companies may need to re-

evaluate their brand values and

examine the importance of the role of

trust for them.

Word of Mouth

In the emerging iSociety word of mouth

is likely to gain currency despite Ð or

perhaps because of Ð other forms of

information. Word of mouth is likely to

have even greater impact when you take

into account the effect of new

communications technology on speed of

communications. It appears High Ì's

are not only those consumers who are

most prepared to take a stand against

companies which do not comply with

their ideals of transparency and fairness

but, importantly, are those best

equipped technologically to pass on

their negative opinions. The importance

of consumer service, then, will become

key as companies need to learn how to

handle queries and objections so as to

reassure, inform and satisfy their wider

stakeholder groups.

Information FilterHowever experienced, friends cannot

experiment and take risks on our behalf

all the time. Many enterprising iSociety

companies will spring up to offer

information ®lter services, helping

individuals to vet information. There is

a growing demand for this at present.

High Ì's express a very strong interest

in some sort of information ®lter.

Demand is also high among younger

people. They are probably at the height

of their information absorption in work

and studies. They have also been

exposed for a while to the notion if not

the reality of intelligent agents Ð

software that roams the Internet on your

behalf seeking out products or services

according to your speci®cations and

budget.

In relation to ®nancial services

products, similar levels agree that they

are much more prepared now than they

were ten years ago to shop around for

the best deals. High Ì's in particular

support this view. This increased

con®dence re¯ects greater transparency

and competition in the marketplace,

stemming from deregulation and the

increased range of products on offer.

It is important to note that, in this as

in many other markets, consumers are

arming themselves with all the

information and comparative yardsticks

they need to make sure that they are in

control.

SUMMARISING THE SOCIAL ANDVALUE SHIFTSChanges in the world of employment

mean that individuals set more store by

their work as a positive component of

their identity, yet are more open to



career change. Self-reliance in terms of

ongoing training will be ever more

highly valued by the new breed of

employers.

The reality of the new political

economy has truly sunk in, with

individuals recognising they need to

take control of their personal ®nancial

provision, and at the same time shop

around for the best deals.

The iSociety is good news for women

with its emphasis on egalitarianism of

opportunity and reward.

The experience of family life has

already become more open, ¯exible and

democratic, and this will deepen.

The time-pressured High Ì's can

afford to concentrate on their priorities,

while retaining control.

While youth does not necessarily

equate with High Ì'ness Ð and indeed,

this group shows some indications of

consumerism reminiscent of the 80s Ð

their views will change with experience

and af¯uence and the independent,

interconnected, entrepreneurial young

will be the mainstays of the emerging

iSociety.

Word of mouth will gain in currency

as time-pressured, properly sceptical,

technologically literate shoppers

navigate their way around the masses of

product and service information

available to them. This will have

profound implications for company

communications Ð internal and

external.

High con®dence with and access to

new technology will be a prerequisite of

the iSociety, with young people being

especially well equipped to take

advantage of opportunities offered.

THE FUTURE DIRECTION OF THE

iSOCIETYFigure 1 summarises the envisaged

future direction of the iSociety. Strongly

aspirational High Ì' values are likely to

be those most highly prized in the

society of the coming decades. The

iSociety index itself is not a static

indicator Ð the highest Ì's will

graduate to a point of further

individualism, independence, ethical

consideration, etc, then branch out and

seek ful®lment in other areas.

The Future Foundation research

suggests that society is moving ®rmly in

the direction of the higher Ì's. Children

born into today's ageing society will live

in a world of interconnectedness where

the High Ì' aspirations of ®nancial,

ethical and personal independence are

the norm and where issues of political

idealism and international commercial

strategy are publicly aired.

The development of iSociety over the

next decade will undoubtedly depend

on economic circumstances, particularly

the growth and distribution of income.

It is envisaged that the majority of

iSociety participants will come from the

top end of the income scale, as they are

the most likely to have the initial

®nancial resources and relevant skill

sets.

While income growth has been

unequal over the past decade, it has

increased in line with earning power.

Growth in income for the top 20 per

cent has far outstripped that of the rest

of the population. Increasing af¯uence

at the top end of the income scale will

favour growth in iSociety membership

substantially over the next decade.

Rising real incomes will bring a further

10 per cent of the population up to and

above the income level where it is

assumed iSociety participation is most

likely. This means a potential

membership increase of 50 per cent in

the next ten years, or 5.4 million people.

It appears that the economic,

technological and attitudinal conditions

are ripe for the iSociety to ¯ourish and

develop.



practice paper 21st-century consumer society

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