Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
- Sales climb as economic conditions improve
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- Figure 1: Total U.S. retail sales and forecast of pet supplies, at current prices, 2006-2016
- Litter and deodorant segment dominates category
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- Figure 2: U.S. retail sales of pet supplies, segmented by type, 2009 and 2011
- Forecast
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- Figure 3: Total U.S. sales and fan chart forecast of pet supplies, at current prices, 2006-16
- Market factors
- Incidence of ownership trending upward
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- Figure 4: Pet ownership in the U.S., 2007-2011
- Hispanics with children are becoming an increasingly important segment
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- Figure 5: Households with children, by race and Hispanic origin of householder, 2011
- Companies, brands, and innovations
- Nestlé continues to dominate the litter category
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- Figure 6: Pet supply market share by leading companies, 2011 and 2012
- Specialty channel plays a key role in driving growth
- The consumer
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- Figure 7: Top pet products purchased by 18-34s, February 2012
- Figure 8: Pet supply spending, by type of pet, February 2012
- Practical considerations play a key role in guiding purchases
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- Figure 9: The top five purchase decision factors for pet supplies, February 2012
- Online Value Seekers a key target
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- Figure 10: Pet products purchased by Online Value Seekers, February 2012
- What we think
Issues in the Market
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- Which market segments offer the greatest growth opportunities in the next five years?
- How can national brands be positioned to compete with private label?
- How can retailers maximize their opportunities?
Insights and Opportunities
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- Subscription services could help retailers capture and maintain share
- Starter kits and other package deals could drive up average spend
- Highlight supplements, vitamins to drive growth
Inspire Insights
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- Trend: Play Ethic
- Trend: Make It Mine
- Trend: Creature Comfort
Market Size and Forecast
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- Key points
- Sales growth accelerates following modest 2009
- Increase in incidence of ownership and innovation driving modest gains
- Macroeconomic condition and emotional attachment also key drivers
- Emotional connection drives spending
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- Figure 11: Total U.S. retail sales and forecast of pet supplies, at current prices, 2006-16
- Figure 12: Total U.S. retail sales and forecast of pet supplies, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 13: Total U.S. sales and fan chart forecast of pet supplies, at current prices, 2006-16
- Walmart sales
Market Drivers
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- Key points
- Incidence of ownership rises slightly from 2009 low
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- Figure 14: Pet ownership in the U.S., by type of pet, 2007-11
- Population growth will drive long-term sales growth
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- Figure 15: Population, by age, 2006-16
- Households with children over index on pet ownership
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- Figure 16: Households, by presence of children, 2001-11
- Concentration of children in Hispanic households explains high demand within the segment
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- Figure 17: Households with children, by race and Hispanic origin of householder, 2011
- Declines in median HH income could slow growth in the short term
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- Figure 18: Median household income in inflation-adjusted dollars, 2000-10
- Macroeconomic trends could help fuel sales gains
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- Figure 19: Unemployment trends, 2007-12
- Figure 20: Consumer confidence, 2007-12
Competitive Context
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- Desire to purchase top-quality food may undermine sales of supplies
- Do-it-yourself sites may pose a threat to some brands
Segment Performance
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- Litter/deodorant remains the dominant category
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- Figure 21: U.S. retail sales of pet supplies, segmented by type, 2009 and 2011
Segment Performance—Litter and Deodorant
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- Key points
- Litter and deodorant sales play key role in driving market growth
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- Figure 22: U.S. retail sales and forecast of litter and deodorant, at current prices, 2006-16
Segment Performance—Dog/Cat Needs
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- Key points
- Cat/dog needs segment drives growth
- Supplements helping to drive growth
- Recall of Frontline Plus, generics could impact sales of flea and tick treatments
- Increase in pet furniture sales also propelling growth
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- Figure 23: U.S. retail sales and forecast of dog/cat needs, at current prices, 2006-16
Segment Performance—Dog Rawhide Chews
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- Key points
- Rawhide chew sales lag behind category
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- Figure 24: U.S. retail sales of dog rawhide chews, at current prices, 2006-16
Segment Performance—Non-dog/Cat Needs
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- Key points
- Sales of small pet products remain largely stagnant
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- Figure 25: U.S. retail sales and forecast of non-dog/cat needs, at current prices, 2006-16
Retail Channels
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- Specialty retailers and mass merchandisers remain dominant
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- Figure 26: Retail sales of pet supplies, by channel, 2009 and 2011
Retail Channels—PetSmart, Petco, Veterinarians’ Offices, Mass Merchandisers, and Other Specialty Retailers
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- Key points
- Mass and specialty dominate the market
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- Figure 27: U.S. sales of pet supplies through PetSmart, Petco, veterinary offices, and other retail channels, 2006-12
- Strong performance of innovative specialty retailers drives sales growth
- PetSmart
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- Figure 28: PetSmart Net Sales in the U.S., Puerto Rico, and Canada, 2008-11
- Figure 29: PetSmart gross profit, 2008-11
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- Figure 30: PetSmart sales by category, 2009-11
- Figure 31: Number of stores operated by PetSmart in the U.S., 2009-11
Retail Channels—Supermarkets
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- Key point
- Supermarkets continue to lag behind dominant channels
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- Figure 32: Retail sales of pet supplies at supermarkets, at current prices, 2006-12
Retail Channels—Drug Stores
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- Key point
- Drug stores could reinvigorate growth with subscription services
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- Figure 33: retail sales of pet supplies at drug stores, at current prices, 2006-12
Leading Companies
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- Key points
- Nestlé Purina, Clorox, and Church & Dwight remain leaders
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- Figure 34: FDMx sales of pet supplies by leading companies, 2011 and 2012
Brand Share—Litter and Deodorant
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- Key points
- Nestlé Purina wins with Tidy Cats
- Fresh Step also wins with winning formula and national advertising
- Arm & Hammer also wins with “advanced odor control”
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- Figure 35: FDMx sales of litter and deodorant, 2011 and 2012
Brand Share—Dog/Cat Needs
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- Key points
- Hartz’s success reflects demand for training pads
- Nylabone’s success shows the power of supplements
- Sergeant’s share likely to decline due to patent infringement recall
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- Figure 36: FDMx sales of dog/cat needs, 2011 and 2012
Brand Share—Dog Rawhide Chews
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- Key points
- Dingo shows dental benefits can drive growth
- Private label continues to dominate the category
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- Figure 37: FDMx sales of dog rawhide chews, 2011 and 2012
Brand Share—Non-dog/Cat Needs
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- Key points
- Sales of non-dog/cat needs continue to lag
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- Figure 38: FDMx sales of non-dog/cat needs, 2011 and 2012
Innovations and Innovators
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- Key points
- Innovation plays a key role in driving growth
- Natural becoming more common, likely to drive growth
- Shampoo is a key subcategory in the natural segment
- Natural litter likely to become more common
- Eco-friendly is emerging as a theme in innovation
- Supplements reflect wellness trend
- Dental products are another key category of wellness innovation
- Doggie diapers could become more common
Marketing Strategies
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- Overview of the brand landscape
- Fresh Step
- Television advertising
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- Figure 39: Fresh Step television ad, 2011
- WebsiteFreshstep.com
- Arm & Hammer
- Television advertising
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- Figure 40: Arm & Hammer Double Duty cat litter ad, 2011
- Website
- Frontline
- Television advertising
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- Figure 41: Frontline Plus ad, 2011
- Frontline Plus promotional site
Pet Ownership
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- Key points
- Six in 10 U.S. households have pets
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- Figure 42: Types of pet, by age, October 2010-November 2011
- Affluents more likely to own pets
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- Figure 43: Types of pet, by household income, October 2010-November 2011
- Households with children a key segment for manufacturers and retailers
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- Figure 44: Types of pet, by presence of children in household, October 2010-November 2011
Type of Dog Owned
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- Key points
- Most own a medium-sized or larger dog
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- Figure 45: Dog ownership, by age, February 2012
- Upper-income owners more likely to have large breeds
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- Figure 46: Dog ownership, by household income, February 2012
Responsibility for Purchases
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- Key points
- Women are a key segment for marketers of supplies
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- Figure 47: Frequency of pet supplies purchase, by gender, February 2012
- Owners aged 35+ more likely to have primary responsibility for shopping
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- Figure 48: Frequency of pet supplies purchase, by age, February 2012
Products and Services
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- Key points
- Women are more likely to buy toys for their pets
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- Figure 49: Pet products purchased, by gender, February 2012
- Young adults more likely to have purchased supplies in recent months
- Young adults could be targeted through social networking sites
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- Figure 50: Pet products purchased, by age, February 2012
- Middle-income segments more likely to purchase in some categories
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- Figure 51: Pet products purchased, by household income, February 2012
Spending on Products and Services
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- Key points
- Spending in most categories is less than $50 per month
- Capitalize on premiums paid for holistic medicine
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- Figure 52: Pet supply spending, February 2012
- Young adults tend to spend the most
- Target young adults with bundles and gift packs that contain a variety of products
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- Figure 53: Pet supply spending, by type of pet and age of owner, February 2012
Litter Usage and Preferences
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- Key points
- Affluent cat owners somewhat more likely to use litter
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- Figure 54: Cat litter usage, by household income, October 2010-November 2011
- Consider targeting upper-income households with premium scoopable varieties
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- Figure 55: Types of cat litter used, by household income, October 2010-November 2011
- Fresh Step is particularly popular among affluents
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- Figure 56: Brands of cat litter used, by household income, October 2010-November 2011
- 18-24s tend to change litter more often
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- Figure 57: Frequency of cat litter use in household, by age, October 2010-November 2011
- Fresh Step especially popular among 18-24s
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- Figure 58: Brands of cat litter used, by age, October 2010-November 2011
- Households with kids more likely to prefer Fresh Step
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- Figure 59: Brands of cat litter used, by presence of children in household, October 2010-November 2011
Channel Preferences
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- Key points
- Walmart captures share with supercenters and big-box format
- Specialty retailers can compete with supercenters by siting stores next to grocers
- Petco and PetSmart especially popular with 18-34s
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- Figure 60: On-site purchase venues for pet supplies, by age, February 2012
- Specialty retailers particularly popular with upper-income owners
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- Figure 61: On-site purchase venues for pet supplies, by household income, February 2012
Incidence of Online Shopping by Retailer
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- Key points
- Overcome key barriers to increase online shopping
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- Figure 62: Online purchase venues for pet supplies, by gender, February 2012
- Young adults more likely to shop retailers with subscription services
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- Figure 63: Online purchase venues for pet supplies, by age, February 2012
Shopping-related Attitudes and Behaviors
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- Key points
- Many, especially women, driven into stores by promises of value
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- Figure 64: Shopping-related attitudes and behavior, by gender, February 2012
- Young adults tend to be more frugal and more likely to consult Facebook
- Online coupons can be a powerful driver, particularly among 18-24s
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- Figure 65: Shopping-related attitudes and behavior, by age, February 2012
Importance of Product and Service Attributes
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- Key points
- Price, functionality, durability, and safety key for all segments
- Eco and local especially important to young adults
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- Figure 66: Important purchase decision factors for pet supplies, by age, February 2012
- Men more likely to be persuaded by reviews
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- Figure 67: Important purchase decision factors for pet supplies, by gender, February 2012
Time Spent with Pets
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- Key points
- Playing with toys, exercising, and cleaning up are frequent activities
- Help owners look good when exercising their pets
- Highlight tools that make grooming easy
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- Figure 68: Time spent with pets in various activities, by age, February 2012
Race and Hispanic Origin
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- Key points
- Whites and Hispanics most likely to own pets
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- Figure 69: Types of pet, by race/Hispanic origin, October 2010-November 2011
- Small dogs especially popular with minorities
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- Figure 70: Dog ownership, by race/Hispanic origin, February 2012
- Hispanics more likely than whites to purchase supplies
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- Figure 71: Pet products purchased, by race/Hispanic origin, February 2012
- Most attributes more important to Hispanics
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- Figure 72: Important purchase decision factors for pet supplies, by race/Hispanic origin, February 2012
Cluster Analysis
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- Moderates (32%)
- Demographics
- Characteristics
- Opportunity
- Minimalists (29%)
- Demographics
- Characteristics
- Opportunity
- Online Value Seekers (38%)
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 73: Demographic characteristics of pet supply clusters, February 2012
- Figure 74: Type of pet owned, by cluster, February 2012
- Figure 75: Pet products purchased, by cluster, February 2012
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- Figure 76: Important purchase decision factors for pet supplies, by cluster, February 2012
- Figure 77: On-site purchase venues for pet supplies, by cluster, February 2012
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- Figure 78: Shopping-related attitudes and behavior, by cluster, February 2012
- Cluster methodology
Custom Consumer Groups
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- Upper-income consumers from all races more likely to shop specialty
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- Figure 79: Purchase locations for pet supplies, by race and household income, October 2010-November 2011
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- Figure 80: Purchase locations for pet supplies, by Hispanic origin and household income, October 2010-November 2011
- Mature Asians could help drive growth in specialty channel
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- Figure 81: Purchase locations for pet supplies, by race/Hispanic origin and age, October 2010-November 2011
- Many factors influence feeding accessory decisions
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- Figure 82: Important purchase decision factors for pet supplies, by products and services, February 2012
IRI/Builders—Key Household Purchase Measures
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- Cat litter
- Consumer insights on key purchase measures—cat litter
- Brand map
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- Figure 83: Brand map, selected brands of cat litter, by household penetration, 2011*
- Brand leader characteristics
- Key purchase measures
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- Figure 84: Key purchase measures for the top brands of cat litter, by household penetration, 2011*
Appendix—SymphonyIRI Builders Panel Data Definitions
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- SymphonyIRI Consumer Network Metrics
Appendix—Other Useful Consumer Tables
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- Figure 85: Pet ownership, by generation, February 2012
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- Figure 86: Dog ownership, by gender, February 2012
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- Figure 87: Dog ownership, by region, February 2012
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- Figure 88: Frequency of pet supplies purchase, by household income, February 2012
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- Figure 89: Frequency of pet supplies purchase, by race/Hispanic origin, February 2012
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- Figure 90: Frequency of pet supplies purchase, by region, February 2012
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- Figure 91: Pet supply spending, by type of pet and income of owner, February 2012
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- Figure 92: On-site purchase venues for pet supplies, by gender, February 2012
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- Figure 93: On-site purchase venues for pet supplies, by race/Hispanic origin, February 2012
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- Figure 94: Online purchase venues for pet supplies, by household income, February 2012
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- Figure 95: Online purchase venues for pet supplies, by race/Hispanic origin, February 2012
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- Figure 96: Shopping-related attitudes and behavior, by household income, February 2012
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- Figure 97: Important purchase decision factors for pet supplies, by household income, February 2012
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- Figure 98: Time spent with pets in various activities, February 2012
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- Figure 99: Time spent with pets in various activities, by presence of children in the household, February 2012
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- Figure 100: Important purchase decision factors for pet supplies, by products and services, February 2012
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Appendix—Trade Associations
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