What Graduates Do Next
March 4 2004
US-based Youth Media and Marketing Networks (Y2M) has announced the results of its fourth annual eGrad Research Study, giving insights into the lifestyle, behavior and purchasing intentions of America's college graduates.
The study includes more than 70 questions and has assisted the strategic marketing initiatives of companies such as Ford, Samsung Electronics NA and Google.
Around 2.3 million graduate from college in the US every year, and the report shows that college graduates are 'in-market buyers' of approximately $40 billion of products and services. Stats from the US Department of Education suggest that the earning potential of men and women aged 25-34 who finish college is more than 50% higher than those with only a high school degree.
As first-time heads of household with higher than average incomes, college graduates intend to replace and purchase many products that defined their college experience including computers, clothing, cars, credit cards and mobile phones. The eGrad Survey results indicate that in the 12 months following graduation:
- two in every three graduates will reorganize their relationships with financial services providers
- one in every two graduates will establish new wireless telephone service and select a wide range of insurance products and
- two in every five graduates will buy a vehicle.
Nearly 100% of respondents use e-mail on a daily basis and expect email to be a primary means of contact among their friends and fellow graduates. The study also revealed that college grads have a particularly high interest in three key areas: advancing their careers, managing personal finances including student loans and continuing to stay in touch with and network among their peers.
According to John Fees, Co-Founder and CEO of Y2M, 'the survey reinforces that no other life-event creates such a vital and opportunistic target audience for brands looking to grow market share... This study confirms what the auto industry has long recognized - utilizing college graduation as a 'trigger-event' for new purchases is a solid investment in acquiring high life-time value customers. The most long-standing graduate marketing programs are the college graduate rebate programs offered by auto manufacturers like Daimler-Chrysler, Ford Motor Company, General Motors, Mazda and Toyota'.
Y2M owns and operates the nation's largest online network of college newspapers serving 250 campuses and over six million university students and alumni, and its subsidiary, eGrad Inc., provides a range of services for graduating college students and recent alumni. Y2M's web site is at
www.y2m.com
All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.
