What is the generation cohort?
According to Strauss and Howe, a generational cohort is defined by demographic group of individuals, whom share commons in attitudes, ideology, birth time period, living experience, and having the same political, economic events that happened during their growing-up period (age 17-24) (Howe and Strauss, 1991). It is believed by Meredith and Schewe (1994), that the center of value, through the reflection of events and experience encountered, is shown through jobs, money, tolerance, sexual behaviours. Having created and developed their values, beliefs, expectation, and behaviours, those aspects remain there and cannot be changed throughout the generation’s lifetime, which created the identity for that generation (Howe and Strauss, 1991). Moreover, the shopping behaviours and purchase patterns are greatly affect by consumer context (Parment, 2011) (Parment, 2013).
Generation Y - the Millennial
The Millennials, in other word the Generation Y, which comprised of individuals born in between 1980-1999 (Gurau, 2012), is the first generation to be considered high-tech generation (Norum, 2003) and also considered as a being consumption-oriented and sophisticated in terms of shopping (Jackson, V., Stoel, L., & Brantley, A., 2011) (Wolburg, J. M., & Pokrywczynski, J., 2001).
Differences in shopping behaviour between Gen X and Gen Y
Generation X has been raised with a sharp comprehension of advertising and media, and concentrates on social event data and picking up a profound comprehension of items before purchasing. It makes them become shrewd online customers and in their information gathering progress, traditional media and the Internet play important roles. “Generation X-ers tend to use information not as a point of pride but as assurance that they are not being taken advantage of by marketers and are getting the best deal possible,” according to Nelson Barber - University of New Hampshire professor. For Generation X, marketers should build strategies giving product-related data that is verbally and visually rich and very instructive in light of the fact that such messages are compatible with the needs of elaborate processors.
It can be seen that Generation X’s making decision on shopping bases on cognitive learning theory. Cognitive learning occurs when a person has a goal and must search for and process data in order to make a decision or solve a problem. (Barber, 2011)
In contrast, shopping behavior of Generation Y is affected by their parents and specially their friends, their companions and sometimes those consumers have trouble in making decision by their own because of “strictly” control of their parents. “Generation Y selects and consumes products that help them achieve their goals of blending in with the crowd or a certain group. Thus, they are influenced by the need to conform in order to be liked and accepted by them,” Nelson Barber- University of New Hampshire professor says. Therefore, companies should attract Generation Y consumers through associate collaborations.
And because Generation Y is media savvy and conscious of being the target of marketing so if brands want to succeed, they should focus not only their website but also social networking, blogs and live chat customer service and essentially become more transparent. Moreover, the mobile Web additionally assumes an imperative part in how Generation Y socializes. (Barber, 2011)
Differences in luxury goods shopping behaviour
Nowadays, luxury goods market has been more and more attracting marketers and it is also one of the markets that shopping behaviours of two generations express different the most.
In the US’s market, both Generation X and Y consumers control 60 percent of luxury market sales (Rubin, 2011). In 2011, It is estimated that Generation Y consumers has spend an increased amount of 33 percent compared to the previous year on luxury fashion items (Hutzler, 2011).
Luxury is considered as a right rather than a privilege to Generation Y consumers (Stein, J. and Sanburn, J., 2013) (Silverstein, M. and Fiske, N., 2008). Most of Generation Y individuals are young and income are yet to be considered high. However, this generation is very brand conscious (Fernandez, 2009) and are willing to spend more to obtain more luxury brands (Silverstein, M. and Fiske, N., 2008) (Grotts, A. and Johnson, T. , 2012). High level of materialism, status consumption, and brand-signalling are displayed greatly among generation Y consumers (Eastman, J. K., & Liu, J., 2012) (Loroz, P. and Helgeson, J., 2013).
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