Tam M Nguyen consumer bahaviour individual assignment

Consumer behaviour of Millennials and Generation X in luxury produtcs
The millennials take their name from the fact they came of age at the turn of the new century, so are usually defined as being born in 1982 or later. Young, excited, active and willing want to keep up with the new-emerging trends are the personality of Millennials
Generation X-ers were born from 1960s to 1980s

A new era of " Luxury products"

The turn of 21st century is witnessing a spectacular growth in luxury consumption. There are three outstanding segments of luxury products: cars, personal luxury goods and luxury hospitality. For the purpose of this study, this assignment will just focus on luxury for personal use

Initially, Luxury products were often incorporated into only certain elite classes, the privileged, the royalties, the rich and the famous, all of them stood at higher social level in community.

Barack Obama

However, in contemporary times, branded goods are suitable for middle class and now have become more affordable to more customer.

LUXURY GOODS
Dress of Gucci ( Photo by Yannis Vlamos )
Louis Vuitton
Perfume
Rolex watch
Instances
Model: Theory of Reasoned Action (adapted from Ajzen and Fishben, 1980)
Theory of Reasoned action in luxury products
H1: luxury products would be a good thing for me to purchase
  • If I own luxury goods, my needs will be satisfied
  • Being confidence and quality are enjoyable, satisfying and pleasant for me

There are a multiplicity of underlying motivations why global citizens flock to consume luxurious items . The possession of luxury products is seen as “a status symbol”, “a tool to satisfy their wants”, “buying to impress other. In other words, Luxury goods serve as an effective way to provide salient insight into individual characteristics, personality traits, life and taste of oneself

For example , Chinese millennials society

have the perception in their minds that appeals or accessories they have used or worn represent for reputation and class of their family and maintain a social status

Especially, either millennials or generation X seems confidence when they are in good shape but only millennials are vulnerable to the recommendation of other people

Source: Lightspeed/Mintel

Some Millennials still rely on their parental finance, have crushing student loan debt and many of them are underemployed. As a result of this, young generations cannot afford to purchase luxury branded products. However, Luxury goods are stood on the list on what millennials enjoy devoting their money to because they think that this is an once-in-a-lifetime opportunity to enjoy a various colour of life and maybe not have a second chance to regain . However, it is widely admitted that affluent consumers in millennial segmentation have recently walked into the maelstrom of work, so they would rather reserve hard-earned money for the sake of activities and travel than branded possessions

Travel and Adventure in Millennials generation

Almost of crucial position or leadership roles in workplace are attributed to Generation X after retirement of the baby boomers . Generation X willing to pay premium price to own luxurious items to either locate “differentiate themselves from the masses” or simply want to belong to “an exclusive group” . While they believe that the real definition of “luxury” just obtain from “exclusivity”, Millennials precisely thirst for “new experiences”. However, Thanks to a mixed variety of fundamental reason, therefore, Generation Y have a tendency to own and use more luxurious goods than generation X consumers

"NEW EXPERIENCE"

However, regardless of the condition of pocket and the era they come, both generations share a relatively similar purpose when making purchase decision in luxury goods. The social value, quality of products are the major concern for these consumers.

H2 : luxury products are appropriate for me
  • "My family and friends think I should own branded products"
  • " I want to own products what they want"
"My family
and friends think I should own branded products"

Millennials cohort tend to more seek the opinions of their surrounding people than members of gen X in term of the influence of familial aspects in intention process. Millennials are very close to their family because they realize their parent’s value While Gen X-ers experienced the noticeable percentage of their parental separation because of the high workload of their parent-older boomers , financial crisis, political instability or economic stagnation.

It is an undeniable fact that 82% of millennials have an affinity for detailed data which derived from Peer-to-peer recommendation while 52% of Generation X considered the opinions of group of friends and their relatives. Millennial consumers tend to look for and review essential information written partly by their peers on social media platform such as Snapchat, Instagram and YouTube before making a purchase decision.

Power of internet

In addition, the survey of Abby Foulkes demonstrates that intention of millennials is sharpen by verbal contribution of their friends and they are more marginally allured by items what “other people are buying” than X cohort. Moreover, the prejudices and the evaluation of other people are more likely to be one of the predominant factors affected purchasing behaviour of Millennials in luxury aspects except for Generation X. What luxurious items anyone bought is no longer the problems that generation X pay attention to.

POWER OF FRIENDS
Source: GMI/Mintel

Over 80% of Millennial consumers tend to look for and review essential information written partly by their peers on social media platform such as Snapchat, Instagram and YouTube before making a purchase decision compared to 69% for Generation X. In addition, the number of Generation Y tend to follow a brand they are fascinated is higher than that of Gen-x counterparts. As a result, in term of the influence of social aspects in intention process, Gen Y cohort tend to more seek the opinions of their surrounding people than members of gen X. Millennials has become one of the most brand-savvy generations and They usually contacted and kept in touch with their related people by social media or blogs

Instead of consulting the colleagues as millennial counterparts, Generation X take the advantage of internet to strengthen and deepen their extant products and brands ‘knowledge background

Generation Xers have been encumbered with “high levels scepticism and cautiousness”, instead of consulting the colleagues as millennial counterparts, Generation X take the advantage of internet to strengthen and deepen their extant products and brands ‘knowledge background .

However, the outcome derived from the research of Abby Foulkes in 2016 show that, both two generations will “make their own mind up about a luxury brand rather than listen to the opinions of other people “, and they also agreed with statement that “A luxury brand preferred by other people but which does not meet my quality standards will never enter into my purchase consideration” at around 1.80 mean. Two statements received a host of strongly advocate from two generations. It means that in terms of, motivation to comply, both generations will hold the initiative and self-determination position in the purchase action.

.

Making final decision or intention process by themselve
CONCLUSION

From the analyzation of this study and many results of previous researchers, it can be said that Millennials are minimally different from their older counterparts (Generation X) in terms of their attitudes towards luxury brand consumption. However, interestingly, subjective norm field witnesses a similar intention and purchasing behaviour process in luxury products, regardless of age variance.

REFERENCE

Acharya Ankita, Barot Kinjal . (2013). A comparison of workplace attitude of generation X and generation Y at professional educational institute. V.M Patel Institute of Management .

Ahmad, N. (2014). Researchgate.net . Retrieved from https://www.researchgate.net/profile/Nawaz_Ahmad3/publication/270447957_An_Empirical_Investigation_to_the_Factors_Influencing_Buying_Decision_of_Luxury_Goods_A_Study_of_Y_Generation/links/54aa5e9f0cf200447b25873f.pdf

Alba. (2016, February ). Visitscotland.org . Retrieved from http://www.visitscotland.org/pdf/Luxury%20Generations%20DOTORG%20FINAL.pdf

Christine Barton, Lara Koslow, Jeff Fromm and Chris Egan. (2012 ). Millennials passions: FOOD, FASHION AND FRIENDS. Boston consulting group .

Christodoulides, G., Michaelidou, N. and Li, C. H. (2009). Measuring perceived brand luxury : an evaluation of the BLI scale. Journal of Brand management, 395-406.

Clayton, J. (2016, 10 28). BOOMERS VS. MILLENIALS : MIND THE FOOD GENERATION GAP AUTHOR. Food Insight (FOOD INSIGHT), pp. 1-3.

Erdogmus, Irem and Isil Budeyri- Turan . (2012 ). The role of personality congruence, perceived quality and prestige on ready-to-wear brand loyalty . Journal of fashion marketing and management 16 , 399-417.

Euromonitor. (2015). Euromonitor.com. Retrieved from http://go.euromonitor.com/free-report-millennials-consumer-behaviour.html

Fernandez, S. (2009). Comparing Generation X to Generation Y on work-related beliefs. (p. 3974). San Jose' State University .

Foulkes, A. ( 2016). A comparison of luxury perceptions of Generation X and Y consumers in the United Kingdom. Research Gate.

Kapferer, J.-N. (1998). Why are we seduced by luxury brands? Journal of brand management.

Martin Fishbein , Icek Ajzen. (1975 ). Belief, Attitude, Intention and Behavior : An introduce to theory and research. Addison-wesley .

Michael J. Silverstein, Neil Fiske. (2008). Trading Up: Why Consumers want new luxury goods- and how companies create them. New York : Portfolio .

Petra, K. K. (2006). Generation Y Attitudes towards Shopping : A comparison of the Czech Republic and Slovakia. Journal of Competitiveness , Vol.8, Issue 1, 38-54.

Sadekar, R. (2016, July 28). hallandpartners.com. Retrieved from http://www.hallandpartners.com/blogpost/luxury-perceptions-gulf

Schawbel, D. (2015, Jan 20). Forbes.com. Retrieved from https://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/#5e23dc026c8f

Sun, M. W. (2011). Consumption of luxury fashion brands: The motives of Generation Y consumers in China. Auckland University of Technology .

Varsha Jain, Saumya Pant. (2012). Navigating generation Y for effective mobile marketing in India : A conceptual framwork. International Journal of Mobile Marketing.

Wiliams, A. (2009). Luxury brand marketing- The experience is everything . Journal of Brand management , 338-346.

Wong, A. C. (1999). Retrieved from http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=11095

Yasav, S. (2014, Apr 22). Balancing Multi-Generational Retail Strategies : Winning over Millennials without losing boomers. Retrieved from http://www.businessinsider.com/sc/how-millennials-and-baby-boomers-shop-2015-4?IR=T

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