INTRODUCTION

An often-cited marketing maxim holds that around 80 percent of consumer purchases are driven by women. The figure is often cited to emphasize how women are underestimated and under-served as customers. But the generally-accepted principle frequently leaves retailers and brands guessing at the extent of women's buying influence within given categories. The theory bases its high purchasing power on how much a women will buy for herself, how much she buys for others (i.e., husband, boyfriend, kids, nephews, male friends, etc.) and even how much a women will influence other purchases. Their buying acumen is often backed by stats around the female gender's growing economic power, their increasing influence in the household, as well as perhaps stereotypical views on their propensity to shop. The finding is most often quoted from Tom Peters' Re-Imagine! Business Excellence in a Disruptive Age. In the book published in 2003, the management guru claims that women make up 83 percent of all consumer purchases. The book notes that in category after category, women are "instigators-in-chief" of most consumer purchases. Breaking out few categories, the book estimates that women determine a whopping 94 percent of home furnishings purchases, 92 percent of vacations, 91 percent of new homes, 80 percent of DIY (do-it-yourself) projects, 68 percent of car purchases, and 51 percent of consumer electronics buys. The book also found that women make up about 89 percent of the spending decisions around new bank accounts and 80 percent around healthcare decisions. But it's tough to figure out women's influence across all categories. For instance, take the often male-skewed sporting goods industry. In its annual Sporting Goods Market Report, the National Sporting Goods Association (NSGA) finds that women on their own behalf acquire about 55 percent of units sold in 14 categories of athletic footwear (excluding rugged outdoor, hunting boots, cleated footwear and water sport). Including purchases she drove for her husband, sons, and other male friends, purchasing power around athletic footwear could be argued to come close to the 80 percent mark. Falling well short might be the category of sports equipment, in which women make up about a third of sales and where purchasing decisions for children are often driven by the father. But in his book, Mr. Peters laments on how, given their dominant purchasing power, women are rarely turned to when it comes to marketing and product design. And he predicted inBusiness Week last year that with women outpacing men in college degrees, they'll increasingly be leading decision making in Corporate America.

Buying Power of Women

In todays modern business world, its imperative for companies to know the purchasing power of women. Even more importantly, companies need to learn how to market to women, to know their needs and wants, and to realize that they make the majority of buying decisions for their households.

Tom Peters book, Re-Imagine! Business Excellence in a Disruptive Age, outlines the strong influence women have when purchasing products. This information should be a strong indicator to companies about the importance of marketing products to women. Below is a list from Peters book of major categories affected by women. "In category after category, women are instigators-in-chief of most consumer purchases. To wit:

All consumer purchases: 83 percent Home furnishings: 94 percent Vacations: 92 percent New homes: 91 percent DIY (do-it-yourself projects): 80 percent Consumer Electronics: 51 percent Consumer Electronics: 51 percent

(And in the latter category, cars, women significantly influence another 30 percent of purchases, bringing their power score to 90 percent.) The same pattern holds in services. To wit:

New bank accounts: women make the choice 89 percent of the time Healthcare: women make 80 percent of decisions, and are responsible for about twothirds of spending."

Womens buying habits arent only important for home purchasing decisions, but more and more, they are influential in the business market. Back in 1970, women constituted only 1 percent of American business travelers. That figure now sits at roughly 50 percent. (Wow!) Whats more, many of those women business travelers are big-time influentials. Women, for example, constitute the majority of CMPs. As in: Certified Meeting Planners. As in: people who book enormous blocks of hotel rooms! In this area alone, tens upon tens of billions of dollars are at stake....each year. This example is only one of thousands of ways women have greatly influenced the economic development of America. Women will continue to gain buying power and its in the best interest of businesses to prepare for this progress. Whether youre a show producer, event planner, exhibitor, etc., it will be to your detriment if you neglect to acknowledge the extremely strong influence women have on purchasing decisions around the country.