In the current research data shows that, the UK luxury market value increasing over 50% in the past 10 years. (Marketing Line, 2017). In the few years, ago, the luxury is only for the top-class people. Nowadays, with the main economy group switch to the middle-class, the luxury consumption start to change the trend to the middle-class. For example, the BMW start to pay more attention on its 3-series car (Solomon, 2008).
The different generation people is a topic cannot be ignoring in luxury market. The daily Luxury report said that the change of luxury market could be due to the new generation people (Luxurydaily.com, 2017). As the standard of new generation, Millennials’ growing with the development of technology. In this page, will illustrate the similar and different between Millennials and Generation X in luxury. Then apply the academic theory and model to explain the reason to cause the different
PS: In order for the better vision, the briefing use the words edition
About the Millennials (Briefing)
Millennials could be describing as to a generation which are born in the twentieth century, when they reached the adult is after 2000. In general, their born between 1977---1994. The people in this stage, their growth is almost simultaneously with the formation of Internet/computer science coincides with the rapid development period (US politics and generation Y: engaging the millennials, 2013)
Compare the general X, the technology is more necessary for their life. To some extent, the video game, Internet and electricity equipment make up they’re growing up. They have the maximum amount of information and easier to access everything. Some data shows that Millennials make up over 21% consumer discretionary purchase. Some forecast said that there are over trillion dollars in the direct buying power in US (Millennial Marketing, 2017).
Some people are called the Millennials as the most Rebellious generation, because almost brands in the before generation could be refuse by them, they are more willingness to try the new brand. The consumer value has the totally change in the Millennials. Unlike their parents or old brother, the self-centred consciousness shows the most intense in this generation. Almost 80% of them said they want the brand to entertain them. However, Because the global development in the modern society, Generation Y shows more tolerance (Millennial Marketing, 2017)
About the generation X (Briefing):
X generation is the people who are born between the 1966 to 1976. Some reports said the generation X are future for the world (Generations X, 2017).
The generation X has been describe as has the high education level, entrepreneurs, and the good communication ability. Compare with the baby boomer and Millennials, it only occupies about 25% population but contribute over 31% in total income. The X generation also access the technology frequently, the reports in Marketers said that “there are 70% of X generation use online shopping. They will not buy the product they are unsure product. Generation X will seek all product information before they decided to purchase (Kumar and Lim, 2008).
The reports in Luxury Daily said: The Generation X has the highest brand loyalty and they are the best customer for the luxury product (Luxurydaily.com, 2017) .
According to the Marketer, Generation X has less interesting in the new brand. “instead, they prefer to stick with brands they know and trust and are willing to shell out extra money for them” (Emarketer.com, 2017)
X generation has its own response for the media promotion. Unlike the Millennials, they have some trust about the traditional media or mainstream media.
Do you belong to Generation X or Generation Y
Resources: (YouTube, 2017)
The Luxury product for Generation X and Millennials:
Luxury has play an important role for Generation X. According to research, the generation X has the most-largest middle class group. The economic and financial policy has influenced their life directly. For Generation X, the luxury should base on their needs to increase the potential value. For example, the luxury car for them. Nowadays, many luxury products have been introducing the new-luxury into the middle-class marketing. The premium price and brand awareness are important. For example, The Lexus car and BMW 3, 5 series have popular in the marketing. This Generation paid more focus on practically, luxury should have the functions which satisfying their needs (Luxurydaily.com, 2017). On the other hand, the luxury should offer the signal wealth, status, and power.
For the Millennials, the luxury product related more intangible. “This is a generalised market, although it offers more opportunity to entry, and express creativity. The audience still hard to defined.” The online media play an important role to enhance the Millennials cognitive their want. “The brand history value for the Millennials are not necessary, O ‘Cass and Frost (2002) identify that the Generation Y (Millennials) customer are driven by the need to possess and display status brands, the promotion are easier to influence their purchase. Consider the financial support factors, the Generation Y prefer to purchase the luxury product on the fashion areas. People may be realized the brand name and sign, but not recognize the function of the product offer. For example, the Millennials would purchase the luxury in the Harrods, but would not interesting in specific brand. They prefer to defined themselves to attract by some characteristic memory. For example, the Christian Louboutin was established in 1991, use the digital promotion and shows its unique design character to attract customer. It has get the huge success in Millennials and there has over 3 million people follow Facebook page (Facebook.com, 2017).
The attitude is important for luxury product. To some extent, the attitude from the customer could shows the consumer value. It is a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to given object. The attitude formation helps the consumer make the purchase decision.
The Generation X has more brand loyalty than Millennials that in. They are more likely insist on the brand they already realized. Compare with Millennials, they are also more reasonable in the decision making.
Tri-Component Attitude Model (Different on Brand Loyalty):
The behavior element, an affect element, and cognitive learning could form the attitude. Tri-Component could be used into the attitude analysis. It could consist of different Hierarchy, which are content Standard learning strategy, the low-involvement strategy and experiential hierarchy (Yuan et al., 2008).
Resources: (YouTube, 2017)
Cognitive could be the knowledge level or briefs. In order to build the best deal, the Generation X are very sensitive on the search and use information to established their own cognition to instead of the promotion from the marketers. There is no doubt that, the Luxury in Generation X stay in high-involving Hierarchy. That means the consumer regards purchase product as a problem-solving process.
Firstly, consumer seek the information about the product, then combine the results with their own knowledge to form the product’s briefs. Consumer has built its own cognitive.
After built its own cognitive, consumer would evaluate the briefs, form the feeling about the product. (Affect element)
Based on the cognitive and evaluation, conform the information like their own experience or advantage, consumer will be into the behaviour element like purchase (Kapferer and Bastien, 2015).
It could be clearly see that, the generation X has keep a certain caution on the purchase Luxury. Although they have its own financial ability and more independence. The high average education level and social experience helps them build its own reasonable decision. The Generation X has keep some traditional characters. For example, like accept conventional marketing techniques. In the Luxury purchase, they are likely to choose the brand which are exist for a certain time. The careful purchase decision process could build the high-customer loyalty. Once the consumer has created the strong brief and purchase habit in some areas, it is hard to persuade them to try other brands.
This is why the Generation could have the brand loyalty, they are in the high involving, their feeling is based on the cognition.
Compare with the Generation X, it is easy to find that the Millennials has the low-finance to supports. They follow the experiential hierarchy (Feel---_Think----Do).
They are easier to influence by the emotional reactions. The Cognition are based on the feeling. Millennials are focus on themselves, they want to the brand arounds them to enhance their image. The Millennials are in the information-bomber, their process is “what they see and hear and use it to decide who or what they want to be.” That means they should set the basic image to choose the product. “Their purchasing decisions are based on the products that will get them there.” On the other hand, the Millennials purchase about the luxury are almost around fashion. With the large emerging and creative luxury into the fashion marketing, there are have the huge choice (Okonkwo, 2010).
Overall, Millennials loyal not the specific brand, they loyal themselves. To some extent, the motivation of Millennials on purchase is different with generation X. The generation X motivation are more rationality and based on the demand. However, Millennials motivation are more personality, their purchase may be only based on "like the design or style."
Limitation of Tri-component model
Although the Tri-Component model has clearly identifying the customer attitude, there still has the limitation. Firstly, this model could only be use in the positive or negative attitude, it cannot be shows the strength of attitude in behavior process. On the other hand, the model does not content the ambivalent attitude. When the consumer does not have the positive or negative attitude, it is easier to persuade them change their behavior attitude (Jansson-Boyd, 2012).
Finally, the model does not analysis the cognitive dissonance. Sometimes the attitude of each component is different, the consumer maybe made the decision which is does not match their thinking (Solomon, 2013).
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