2. Macro Environment Analysis
2.1 The Difference in Availability of Leisure Products for Baby Boomers and MillennialS
Economy has always been a key factor in setting the tone of the customers’ power, buying power and habits. It is concerned with the social and economic impacts of the time that purchasing and consumption behaviour have on consumers (Kuester, 2012). In the early 1960s, China’s GPD was 115 billion RMB and the majority of the population lived in rural areas and laboured on farms to earn their livelihoods (Lin et al, 2003). The idea of leisure and its related products and services, such as recreation, entertainment and touring, were extremely rare and, therefore, foreign to most.
Following the opening-up policy, the economy changed significantly and rapidly developed. A market-oriented economy was inaugurated in 1978 under the socialist system and adult baby boomers witnessed the prosperity of the leisure market and its various products and services, such as game gadgets, sportswear, entertainment and tourism. Consequently, millennials were born and raised in substantially improved circumstances with easy access to a wide range of leisure activities and this has only increased as people’s incomes have grown.
2.2 The Education Status Difference of Baby Boomers and Millennials
Another distinct disparity in terms of social upbringing is the education they receive. Most baby boomers received less than the standard compulsory education and a significant proportion barely completed primary school while many women received no education at all (Bauer et al, 1992). The higher education rates of the baby boomer generation are even lower and only 280,000 new students enrolled in tertiary education in 1980 (Davin, 1991); as opposed to the 6 million undergraduates in 2010 and a growing number of young students who choose to leave the country for college education (Chen, 2014). Globalisation has had a much greater effect on millennials and baby boomers are comparatively less susceptible to global brands.
3.1 Awareness Process in AIDA Model Analysis
As the first process, the importance of making people aware and catching their attention is obvious (Lewis, 1908). The leisure industry makes a substantial effort to reach out to both generations to encourage purchase behaviour. Take tourism for example, it has become a popular service which appeals to both the young and the old. The early activities of tourism services are spreading their advertising by placing posters in public venues, distributing flyers on the streets and setting up offices in locations that people can easily access for consultations. This store-office method remains to this day and still serves advertising purposes effectively by catching potential customers attention and providing quick and easy access to their services.
What’s slightly different with millennials is that younger travellers use the internet to find information. Tourism services have risen to the occasion by developing a comprehensive online presence which includes detailed itineraries and prices. Millennials prefer acquiring service information from the ease and comfort of their own homes or offices; eliminating the hassle of physically going outdoors.
Another example of the leisure industry achieving awareness is in recreational industries such as karaoke, massage and concerts. The main advertising media for these services is the internet or smart phone apps and very little publicity is generated posters and flyers. The internet is the dominant source of media for today’s youth. This is also where the idea of digital marketing comes in, and its campaigns are becoming more prevalent and efficient in steering buyers-to-be in their direction (Dahlén et al, 2010).
3.3 DESIRE PROCESS ANALYSIS IN AIDA MODEL ANALYSIS
Desire is the part where consumers are converted from "liking it" to "wanting it" before the final action of purchase (Hanlon, 2017). Unlike necessary products, for which this process does not play much of a role, leisure products and services need to cinch that emotional connection with customers to generate that desire in them.
The leisure industry commonly approaches this aspect by involving elements that the customers can relate to or identify with. For example, millennials are more likely to purchase tickets to movies or concerts when they involve pop-culture stars or use them as mouthpieces for their products and services. Statistics have also shown that effective advertising through the press creates awareness and a "buzz" that produces desire in both millennials and baby boomers (Fernandez, 2009).
The study of consumer behaviour found that consumers are influenced by their family, friends, sports teams, reference groups, and society in general (Kahle & Close, 2011). Millennials, with their access to the online social network, often experience desires conjured up by various media like WeChat and Weibo (like Twitter and Instagram). This happens much less with baby boomers whose desire-arousal relies on recommendations by their family and friends. Many leisure brands have a presence on social networks in order in fuel the consumers’ desire with a 24-hour online service which is primarily targeted at millennials.
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