Contents:

Scope and Themes What you need to know Definition Data sources Consumer survey data Consumer Research Primary data analysis Sampling Online surveys Phone surveys Greenfield Online Interactive Tracking Systems (Itracks)/Survey Sampling International (SSI) Global Market Insite (GMI) Secondary data analysis Experian Simmons National Consumer Studies Advertising Creative Abbreviations and terms Abbreviations Executive Summary Insights and opportunities Products/entertainment for parents and kids Reconnecting the family Kids take the wheel Helping kids avoid childhood stress Growing kid and teen demographics will fuel the nag factor Number of kids increases Teen population flatlines Growth of HHs without children far outpaces that of HHs with children Hispanic and Asian kid populations increase more than white and black populations Who has the most pester power? Young kids ask for more, older kids get what they want more Hispanic kids more likely to get what they want Venues of influence Most kids get to frequently shop at their favorite stores Mass merchandisers, bookstores represent key retailers for the nag factor; toy stores challenge the power of the pest Online influence Most kids ask their parents for stuff online Video games, toys/games, music, and electronics top the list for stuff kids want online Top allowance earners Amount of allowance is tied to age; allowances have mixed impact on pester power Kids who are used to getting what they want are more likely to receive higher allowances Four in 10 kids aged 6-11 get money as needed Pesterers’ influence on family purchasing decisions Kids who are used to getting what they want are more likely to influence electronics purchases… …and purchases of snacks/takeout food/fast food Word-of-mouth potential of pesterers Kids who usually get what they want are often peer leaders Favorite activities of pesterers Most kids age 6-11 get to choose their entertainment most/some of the time TV is still king, but video games and online chatting gain heavy following Advertising to kids Web marketing YouTube video ads Advergaming Demographics of Teens and Kids Key points Kid and teen demographics Figure 1: Population by age, 2004-14 Figure 2: Households by presence of children, 1998-2008 Hispanic and Asian child populations grow fastest Hispanic spending power grows Figure 3: U.S. race and Hispanic origin child population, by age, 2003-14 Who Has the Most Pester Power? Key points Figure 4: Frequency with which kids ask parents to buy them something, by gender and age, April 2009 Figure 5: Frequency with which kids ask parents to buy them something, by race and Hispanic origin, April 2009 Figure 6: Frequency with which kids get what they ask for from their parents, by gender and age, April 2009 Figure 7: Frequency with which kids get what they ask for from their parents, by race and Hispanic origin, April 2009 Venues of Influence Key points Figure 8: Frequency with which kids get to shop at their favorite stores, by gender and age, October 2007-December 2008 Figure 9: Frequency with which kids get to shop at their favorite stores, by race and Hispanic origin, October 2007-December 2008 Retail environments Figure 10: Frequency with which kids are most likely to get what they ask their parents for at specific retail locations, by gender and age, April 2009 Figure 11: Frequency with which kids are most likely to get what they ask their parents for at specific retail locations, by race and Hispanic origin, April 2009 Online Influence Key points Figure 12: Percentage of kids who ask parents to buy them something on the internet, by gender and age, April 2009 Figure 13: Items kids ask their parents to buy them on the internet, by gender and age, April 2009 Figure 14: Items kids ask their parents to buy them on the internet, by race and Hispanic origin, April 2009 Top Allowance Earners Key points Figure 15: Amount of kids’ weekly allowance, by gender and age, April 2009 Figure 16: Amount of kids’ weekly allowance, by race and Hispanic origin, April 2009 Figure 17: Amount of kids’ weekly allowance, by kids who get what they ask their parents for most of the time, some of the time, or never, April 2009 Figure 18: Incidence of weekly or monthly allowance, by gender and age, October 2007-December 2008 Figure 19: Incidence of weekly or monthly allowance, by race and Hispanic origin, October 2007-December 2008 Figure 20: Incidence of allowance or money for chores among teens, by gender and age, October 2007-December 2008 Pesterers’ Influence on Family Purchasing Decisions Key points Electronics Figure 21: Ways kids helped parents make HH electronics purchase decisions, by kids who get what they ask their parents for most of the time, some of the time, or never, April 2009 Snack/takeout food items Figure 22: Ways kids helped parents make HH snack/takeout food items purchase decisions, by kids who get what they ask their parents for most of the time, some of the time, or never, April 2009 Figure 23: Frequency with which child picks where to eat out, by gender and age, October 2007-December 2008 Figure 24: Frequency with which child picks where to eat out, by race and Hispanic origin, October 2007-December 2008 Word-of-Mouth Potential of Pesterers Key points Figure 25: Level of pesterer peer influence, by kids who get what they ask their parents for most of the time, some of the time, or never, April 2009 Favorite Activities of Pesterers Key points Figure 26: Frequency with which kids get to choose the entertainment they go to, by gender and age, October 2007-December 2008 Electronic pastimes Figure 27: Weekly hours spent on electronic activities, by kids who get what they ask their parents for most of the time, some of the time, or never, April 2009 Other activities Figure 28: Weekly hours spent on activities, by kids who get what they ask their parents for most of the time, some of the time, or never, April 2009 Advertising and Promotion Overview Concerns lead to a backlash Figure 29: Media expenditures of leading toy companies, 2008 Web marketing Figure 30: Items kids ask their parents to buy them on the internet, April 2009 Video games Company websites YouTube videos Advergaming TV ads Apple iPhone 3G Figure 31: Apple iPhone 3G television ad, June 2009 Disney Parks Figure 32: Disney Parks television ad, June 2009 McDonald’s Figure 33: McDonald’s television ad, June 2009 Nickelodeon Figure 34: Nickelodeon television ad, June 2009 Cartoon Network Figure 35: Cartoon Network television ad, June 2009 Nintendo Wii Fit Figure 36: Nintendo Wii Fit television ad, June 2009 Appendix: Other Useful Consumer Tables Venues of influence Figure 54: Frequency with which kids are most likely to get what they ask their parents for at other environments, by gender and age, April 2009 Figure 55: Frequency with which kids are most likely to get what they ask their parents for at other environments, by race and Hispanic origin, April 2009 Online influence Figure 56: Percentage of kids who ask parents to buy them something on the internet, by race and Hispanic origin, April 2009 Favorite activities of pesterers Figure 57: Frequency with which kids get to choose the entertainment they go to, by race and Hispanic origin, October 2007-December 2008 Appendix: Trade Associations

Companies Mentioned

- Amazon North America - American Psychological Association - Apple, Inc - Audit Bureau of Circulations - Blockbuster USA - Borders Group - Burger King Corporation - Campbell Soup Company - Canned Food Alliance - CBS Corporation - Coca-Cola Company (The) (USA) - Consumer Electronics Association - Facebook, Inc. - Federal Communications Commission (FCC) - Federal Trade Commission - Food and Drug Administration - Food Institute - Food Marketing Institute - Ford Motor Company (USA) - Fox Entertainment Group Inc. - Greenfield Online - Grocery Manufacturers of America (GMA) - Hasbro Inc - Hershey Company, The - Institute of Medicine - Kellogg Company - Kraft Foods Inc. (U.S.A.) - LEGO Company - Los Angeles Times - Mars Incorporated - Mattel Inc. - McDonald's U.S.A. - Microsoft USA - MySpace.com - National Association for Stock Car Auto Racing (NASCAR) - National Association of Recording Merchandisers - National Food Processors Association (NFPA) - National Football League Inc. - Nestlé USA - Nickelodeon Networks - Nintendo of America Inc. - Recording Industry Association of America [RIAA] - Sony Corporation of America - Target Corporation - The Cartoon Network - Toys R Us - Turner Broadcasting System, Inc. - Twitter, Inc. - U.S. Bureau of Labor Statistics - U.S. Bureau of the Census - Unilever USA - Verizon Wireless (Cellco) - Walmart Stores (USA) - Walt Disney Company, The - Wendy's International Inc - YouTube, Inc.