Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Consumer spend data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market background—Demographics and cohabitation
- Young adults, money and income
- Spending patterns
- Common life events and popular leisure activities
- Shopping attitudes and behavior
- Where they shop: A channel analysis
- Young adults and the internet
- Apparel preferences and purchase patterns
- Race and ethnicity
Insights and Opportunities
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- Create user feedback loops to engage customers in the brand
- Creating authenticity
- Social media and retail: Sharing value may be the hot experience
- Help them create what they want: The value of customization
- Use social media and customization to drive traffic to brick-and-mortar
- Creating local appeal among young adults: College and street promotions
Fast Forward Trends
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- Trend: Social Networking
- What’s it about?
- The evolution of social networking tools: Making it simple, quick, and pithy
- Trend: New Fundamentalism
- What’s it all about?
- Obama: Youth’s antidote to two Americas
Market Background—Population by Race/Hispanic Origin and Living Arrangements
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- Key points
- More than 30% of the adult U.S. population are between ages 18 and 34
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- Figure 1: Population aged 18 or older, by age group, 2003-13
- Young adults are ethnically and racially diverse
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- Figure 2: 15-34 year olds, by race/Hispanic origin, 2003-13
- Figure 3: 15-34 year olds, by race/Hispanic origin, share of population, 2003-13
- Most growth amongst whites in older age groups
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- Figure 4: U.S. white population, by age, 2003-13
- Hispanic population growing fastest
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- Figure 5: U.S. Hispanic population, by age, 2003-13
- Blacks have a high proportion of young adults
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- Figure 6: U.S. black population, by age, 2003-13
- Asians have higher proportion of young adults than whites but lower than Hispanics and blacks
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- Figure 7: U.S. Asian population, by age, 2003-13
- The incidence of marriage spikes in the mid-twenties
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- Figure 8: Marital status, by age, 2006
- Many 18-24s are living in a period of transition
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- Figure 9: Living situation of 18-35 year olds, by age group, August 2008
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- Figure 10: Living situation of 18-35 yer olds, by gender, August 2008
Young Adults, Money and Income
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- Key points
- Young adults have not reached peak earning years
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- Figure 11: Median household income, by age of householder, 2007
- Young adults are more confident than older Americans
- Most young adults have a credit and debit card
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- Figure 13: Incidence of owning checking account, debit and credit card, by age, August 2008
- Most have some savings but not higher-yield CDs or a college savings plan
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- Figure 14: Types of savings accounts held by 18-34 year olds, by age group, August 2008
Spending Patterns
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- Key points
- Expenditures of 18-24s fall as spending in the 25-34 segment rises
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- Figure 15: Trended total aggregate spending of all consumer units, by age, 2002-06
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- Figure 16: Trended index of total spending, by age, 2002-06
- Under-25s reduce spending at restaurants as the 25-34 age segment increases food spending
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- Figure 17: Trended aggregate food spending, by age, 2002-06
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- Figure 18: Trended index of food spending, by age, 2002-06
- Average housing expenditures increased between 2005 and 2006
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- Figure 20: Trended index of housing spending, by age, 2002-06
- Young adults over-index on alcohol expenditures
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- Figure 21: Trended aggregate alcoholic beverage spending, by age, 2002-06
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- Figure 22: Trended index of alcoholic beverage spending, by age, 2002-06
- 25-34 year-olds over-index on apparel expenditures
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- Figure 23: Trended aggregate apparel and services spending, by age, 2002-06
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- Figure 24: Trended index of apparel and services spending, by age, 2002-06
Common Life Events and Popular Leisure Activities
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- Key points
- Listening to music, dining out, or reading are the most popular leisure activities
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- Figure 25: Participation in leisure activities/hobbies in the past year, by age, February 2007-March 2008
- Affinity for music drives MP3 purchase
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- Figure 26: Ownership of MP3 players and music-playing phones among 18-34 year olds, by race and gender, April 2008
Shopping Attitudes and Behavior
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- Key points
- Young adults, like Hispanics, have a high affinity for shopping
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- Figure 27: General group shopping attitudes, by age, February 2007-March 2008
- 18-24 year-olds somewhat more impulsive and less discerning
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- Figure 28: Attitudes towards impulse shopping, bargains and unknown brands, by age, February 2007-March 2008
- 18-24s more influenced by unique retail environment and more willing to travel
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- Figure 29: Attitudes about shopping environment and habits, by age, February 2007-March 2008
Where They Shop: A Channel Analysis
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- Key points
- Most have visited a shopping mall in the last four weeks
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- Figure 30: Incidence and frequency of visiting shopping malls, by age, February 2007-March 2008
- Figure 31: Incidence and frequency of visiting strip malls, by age, February 2007-March 2008
- Grocery, mass and warehouse channels most popular for food purchases
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- Figure 32: Incidence of shopping specific channels for food, by age, August 2008
- Wal-Mart dominates grocery channel
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- Figure 33: Food stores shopped at in previous four weeks, by age, February 2007-March 2008
- Mass, department and mall channels most popular for non-food purchases
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- Figure 34: Incidence of shopping specific channels for non-food items, by age, August 2008
- Wal-Mart and Target shopped at far more frequently than club and dollar stores for non-food items
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- Figure 35: Mass merchandisers, discount and club stores shopped at in previous three months, by age, February 2007-March 2008
- Walgreens and CVS capture the biggest share of drug store share
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- Figure 36: Drug stores shopped at in previous four weeks, by age, February 2007-March 2008
- More than half shopped electronics stores in the previous three months
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- Figure 37: Home electronics stores shopped at in previous three months, by age, February 2007-March 2008
- Macy’s, JCPenney and Kohl’s among most popular department stores
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- Figure 38: Department stores shopped at in previous three months, by age, February 2007-March 2008
- Home improvement popular with many; Home Depot and Lowe’s dominate channel
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- Figure 39: Home improvement stores shopped at in previous three months, by age, February 2007-March 2008
- Old Navy and Victoria’s Secret among most popular apparel stores
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- Figure 40: Apparel stores shopped at in previous three months, by age, February 2007-March 2008
Young Adults and the Internet
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- Key points
- 25-34 year-olds drive online retail sales
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- Figure 41: Internet shopping, by age, February 2007-March 2008
- Convenience and price are the most important drivers of online purchase
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- Figure 42: Reasons for shopping online, by age, August 2008
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- Figure 43: Offers through which merchandise or services were ordered in the last 12 months over the internet by age, February 2007-March 2008
- Lack of a credit card may be discouraging purchase among 18-24 year-olds
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- Figure 44: Method of purchase for internet shopping, by age, February 2007-March 2008
- Apparel, books, music and technology commonly purchased online
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- Figure 45: Items purchased on the internet in the last 12 months, by age, February 2007-March 2008
Apparel Preferences and Purchase Patterns
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- Key points
- 18-24 year-olds value fashion while 25-34s are more focused on function
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- Figure 46: Attitudes about apparel, by age, February 2007-March 2008
- Women tend to buy more frequently than men
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- Figure 47: Female apparel purchase, by age, February 2007-March 2008
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- Figure 48: Women’s apparel/accessory items purchased in the last 12 months, by age, February 2007-March 2008
- 25-34 males more likely to report purchasing clothing in the last year
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- Figure 49: Male apparel purchase, by age, February 2007-March 2008
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- Figure 50: Men’s apparel/accessory items purchased in the last 12 months, by age, February 2007-March 2008
- More than six in 10 25-34s purchased children’s clothing in the last year
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- Figure 51: Children’s clothing purchased, by age, February 2007-March 2008
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- Figure 52: Age of children clothing bought for, by age, February 2007-March 2008
Advertising and Promotion to Young Adults
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- Analysis of television advertisements
- Liquor and beer companies focus messaging on young adults
- Vodka ads appeal to blacks and the hip-hop crowd
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- Figure 53: Absolut vodka ad, 2007
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- Figure 54: Ciroc ad, 2007
- Domestic beer ads target broader segment, but remain focused on men
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- Figure 55: Bud Light Lime ad, 2007
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- Figure 56: Miller Chill ad, 2007
- Companies target young adults with integrated campaigns designed to pitch new age and energy drinks
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- Figure 57: SoBe Life water, 2007
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- Figure 58: Red Bull Wiiings, 2007
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- Figure 59: Mountain Dew AMP Energy drink, 2007
- Preference for social media tools shifts during young adulthood
- Twitter.com
- Flickr.com
Race and Hispanic Origin
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- Key points
- Consistent with average HH incomes, Asians have the highest saving balance and blacks have the lowest
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- Figure 60: Current account balance, by race/Hispanic origin, August 2008
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- Figure 61: Investing accounts, by race/Hispanic origin, August 2008
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- Figure 62: Savings accounts, by race/Hispanic origin, August 2008
- Distinct purchase patterns of Asians and blacks reflect some lifestyle differences, but both groups have a high affinity for cooking
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- Figure 63: Frequency of purchase of selected products in a year, by race/Hispanic origin, August 2008
- Acculturated Hispanics tend to exhibit attitudes and behaviors similar to whites, while Spanish speakers are distinct
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- Figure 64: Hispanic shopping patterns, by language preferred when reading, January 2007-November 2007
- Less acculturated Hispanics tend to be more influenced by retail location than the shopping experience
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- Figure 65: Hispanic influences on retail channel choice, by language preferred when reading, January 2007-November 2007
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- Figure 66: Retailers shopped at by Hispanics in the last 3 months, by language preferred when reading, January 2007-November 2007
Deeper Analysis—Young Affluents, Minimalists, Scholastics
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- Young Affluents (19%)
- Minimalists (66%)
- Scholastics (15%)
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- Figure 67: Clusters, August 2008
- Figure 68: Current living situation, by clusters, August 2008
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- Figure 69: Type of accounts, by clusters, August 2008
- Figure 70: Average savings balance, by cluster, August 2008
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- Figure 71: Average checking balance, by clusters, August 2008
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- Figure 72: Average credit card balance, by clusters, August 2008
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- Figure 73: College enrollment status, by clusters, August 2008
- Figure 74: Frequency of category purchase, by clusters, August 2008
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- Figure 75: Incidence of category purchase on the internet, by clusters, August 2008
- Figure 76: Proportion of total spending done in retail stores, by clusters, August 2008
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- Figure 77: Clusters by gender, August 2008
- Figure 78: Clusters by age groups, August 2008
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- Figure 79: Clusters by income group, August 2008
- Figure 80: Clusters by ethnicity, August 2008
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- Figure 81: Clusters by Hispanic origin, August 2008
- Methodology
Custom Consumer Groups
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- Key point
- Married couples and males with children have high credit card balances
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- Figure 82: Current credit card account balance, by custom consumer group, August 2008
Appendix—Additional Expenditure by Category Tables
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- Food at home and away from home
- Food at home
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- Figure 83: Trended aggregate food at home spending, by age, 2002-06
- Figure 84: Trended index of food at home spending, by age, 2002-06
- Food away from home
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- Figure 85: Trended aggregate food away from home spending, by age, 2002-06
- Figure 86: Trended index of food away from home spending, by age, 2002-06
- Spending categories where young adults tend to under-index
- Healthcare
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- Figure 87: Trended aggregate healthcare spending, by age, 2002-06
- Figure 88: Trended index of healthcare spending, by age, 2002-06
- Entertainment
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- Figure 89: Trended aggregate entertainment spending, by age, 2002-06
- Figure 90: Trended index of entertainment spending, by age, 2002-06
- Personal care and services
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- Figure 91: Trended aggregate personal care products and services spending, by age, 2002-06
- Figure 92: Trended index of personal care products and services spending, by age, 2002-06
- Reading
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- Figure 93: Trended aggregate reading spending, by age, 2002-06
- Figure 94: Trended index of reading spending, by age, 2002-06
- Cash contributions
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- Figure 95: Trended aggregate cash contributions, by age, 2002-06
- Figure 96: Trended index of cash contributions, by age, 2002-06
- Personal insurance and pensions
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- Figure 97: Trended aggregate personal insurance and pension spending, by age, 2002-06
- Figure 98: Trended index of personal insurance and pension spending, by age, 2002-06
Appendix—Additional Hispanic Acculturation Tables
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- Figure 99: Hispanic attitudes about shopping and family/children, by language preferred when reading, January 2007-November 2007
- Figure 100: Hispanic attitudes about apparel, by language preferred when reading, January 2007-November 2007
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- Figure 101: Female Hispanic women’s apparel/accessories bought in the last 12 months, by language preferred when reading, January 2007-November 2007
- Figure 102: Male Hispanic men’s apparel/accessories bought in the last 12 months, by language preferred when reading, January 2007-November 2007
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- Figure 103: Hispanic consumer confidence and purchasing propensity, by language preferred when reading, January 2007-November 2007
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Appendix—Additional Consumer Tables
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- Figure 104: Event expected to experience in the next 12 months 5% or greater, by age, February 2007-March 2008
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- Figure 105: Incidence of shopping specific channels for food, by household income, August 2008
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- Figure 106: Incidence of shopping specific channels for non-food items, by household income, August 2008
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- Figure 107: Share of shopping at key food channels, by age, August 2008
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- Figure 108: Share of non-food shopping at key channels, by age, August 2008
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- Figure 109: Convenience stores shopped at in previous four weeks, by age, February 2007-March 2008
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- Figure 110: Home furnishing stores shopped at in previous three months, by age, February 2007-March 2008
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- Figure 111: Office supply stores shopped at in previous three months, by age, February 2007-March 2008
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- Figure 112: Specialty stores shopped at in previous three months, by age, February 2007-March 2008
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- Figure 113: Frequency of purchase of selected products in a year, by age, August 2008
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- Figure 114: Frequency of purchase of selected products in a year, by household income, August 2008
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- Figure 115: Frequency of internet purchase in a year, by household income, August 2008
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- Figure 116: Current account balance, by household income, August 2008
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- Figure 117: Everyday accounts, by race/Hispanic origin, August 2008
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- Figure 118: Attitudes about shopping and kids, by age, February 2007-March 2008
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- Figure 119: Living situation, by race/Hispanic origin, August 2008
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- Figure 120: Frequency of internet purchase in a year, by race/Hispanic origin, August 2008
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Appendix: Trade Associations
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