Marketing
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thisisConsumerBuyerBehaviorPart1.docxthis is Consumer Buyer Behavior Part 1. Our learning objectives today include analyze the generations that exist today and the impact for marketers, identify the demographics and characteristics of each generation, and describe the environmental influences that shaped generational attitudes. We'll begin with a list of all of the generations, and then I will provide more detail towards the end of the session.
The idea behind understanding generation segmentation is that people who grew up experiencing common events become similar in their activities, interests, and opinions. These groups often enjoy the same music, products, and experiences. I will first introduce each generation, beginning with the Greatest Generation. Next comes the Depression Era or Silent Generation, followed by Baby Boomers, followed by Generation X, next comes the Generation Y or also known as the Millennials. Generation Z follows.
And there is a seventh generation to be officially named. Recent articles have cloned the name Alpha. Because this group is so young, they won't be a major part of this overall discussion. But it is important to know that there is this seventh generation on the horizon.
Getting back to the oldest group, the Greatest Generation, you will see they witnessed a lot of political and social turmoil. These folks are 88 years and up. Their life experiences shape these specific attitudes and behaviors in general. The population is approximately 4 million, and most have fixed incomes and spend heavily on health care.
So the next generation, the Depression Era or Silent Generation, also experienced strong political and social turmoil. These folks are in their mid- to late 70s and early 80s. Their experiences shaped them into hard-working patriots, mostly in blue collar agricultural fields. They live on fixed incomes, and they spend heavily on health care and related medical expenses.
Baby boomers are split into two categories. The first Boomer segment is bounded by the Kennedy and Martin Luther King assassinations, civil rights movements, and the Vietnam War. Boomers had improved economic opportunities versus their predecessors and were largely optimistic about the potential for America and their own lives, not withstanding the Vietnam War.
To this day, many remain career oriented and seek a better way of life for themselves and their family members. They are extremely loyal to employers and to their family dynamic. Many spend on home improvements, vacation homes, golf memberships, and pets.
Baby Boomers II experienced different social, economic, and political changes during their primary growth years versus Boomers I. There is less trust in government, policies, and leaders. The economic struggles due to the oil embargo of the 1970s reinforced a sense of narcissism or an I'm-out-for-me attitude, and they became focused more on self-help and were the first to be exposed to the AIDS epidemic.
The Boomer II Generation did not have the benefits of the Boomer I class, as many of the best jobs and opportunities, housing, et cetera were taken by the larger and earlier group. However, they have a live-to-work attitude. They are loyal to one or two employers and receive pensions and gold watches upon retirement.
Generation X were exposed to high divorce rates during their formative years, which inspired the term "latchkey kids" because many arrived home to an empty house after school. They had the lowest political involvement, but this has changed over the past 15 years. They often exhibit skeptical personalities, outlooks on life. They inherited the live-to-work motto from Boomers but are not loyal to one employer, usually.
Entrepreneurship began to flourish with this generation, and the majority are far better educated than previous generations. Because of the weaker family dynamic, as evidenced with the higher divorce rate, many approach marriage and having children with caution. And they marry later in life. This generation strives for inclusivity and equal rights. It is also important to note that Generation X is largely responsible for bringing internet social marketing and e-commerce to it's high usage rate today.
Generation Y, also known as Millennials, are technology wise and immune to most traditional marketing and sales pitches because they were over-exposed to it since early childhood. They are not typically brand loyal unless they trust a brand's authenticity. Very important-authenticity of a brand is critical when marketing to Millennials.
Gen Y kids were often raised in dual-income or single-parent families and have more involvement in family purchases, everything from groceries to new cars. They typically begin families in mid-30s-- you know, much later than previous generations-- and have been
exposed to intense political turmoil-- 9/11, and other terroristic attacks, for example.
Gen Y shifted a live-to-work attitude to a work-to-live perspective. They believe in working smarter and not harder or longer. This has created more informal work attire and flexible hours. They prefer autonomy and are highly entrepreneurial. They usually seek brands and careers that are connected with a social good. Many still live at home or rent.
Generation Z-- so right behind Millennials-- grew up with technology since birth. They have no idea of what life was like with rotary phones, typewriters, and Wite-Out. Because of extensive tech reliance, many are seen as socially awkward. Many present cynical but realistic attitudes about life in general, and they are slated to become one of the most entrepreneurial groups to date.
Gen Z is hyperaware of external and internal influences. This is fueled by the ease of information from media, TV, and the internet. They embrace cultural diversity and inclusivity and are heavily influenced by real spokespersons, especially YouTubers.
Generation Alpha, the upcoming 7th generation-- speculation about probable characteristics include-- and I say "speculative" because they're still very young. Studies suggest that they won't like to share, and it'll be an it's-all-about-me attitude. They will be boundary and rule breakers.
They will be mobile even when stationary. They won't care about privacy as much as previous generations, and they most likely will not embrace organized religion. Again, this is what early studies suggest. We'll have to wait and see.
