DECISION MAKING

OF GEN Y
AZIERA ADLEEN BINTI ADNAN (186023)
MAIZATUL AQIRA BINTI ISHAK (186024)
NUR ATHIRAH BINTI HUSSIN (186019)
ANSARI BIN RAMLI (185276)
MUHAMMAD NOOR KHAIRUL BIN SUHAIMI (185392)

PART 1 :
INTRODUCTION
Generation Y can be divided into three sub-segments :
-adults of 18 to 27 years old,
-teenagers of 13 to 17 years old
-children of 8 to 12 years old

The members are described as :

-socially
-environmentally aware and
-open to new experiences

GEN Y

PART 2, SECTION A
GENERAL CHARACTERISTICS OF GEN Y

Gen Y & Education

Gen Y & Personality
Gen Y & Spending Patterns

GEN Y AND EDUCATION

Gen y significantly value education.
Generation Y recognizes that the key to success lies in
advanced learning.

Generation Y also see themselves as consumers of education

and seek customization and choice in their educational
offerings.

12/24/15

GEN Y AND PERSONALITY

Generation Y consider themselves as special, sheltered,
confident, team-oriented, conventional, pressurised and
achieving.

Generation Y are likely to establish their own business after

retirement in order to sustain their life and their families
and supplement their pension funds.

Their characteristics associable, optimistic, talented, welleducated, collaborative, open-minded, influential and
achievement oriented.
12/24/15

GEN Y AND SPENDING

PATTERN
The wealthiest members of the Generation Y consumption
group are those 19-25 years old, many of who are
employed in either part-time or full- time jobs.

Generation Y consumers are very likely to spend their

cash as quickly as they acquire it, usually on consumer
goods and personal services.

Generation Y have more money and wield more economic

clout than their predecessors.
12/24/15

GEN Y DECISION
MAKING PROCESS

online

In
store

12/24/15

Section b : online
Online shopping is a form of electronic commerce
which allows consumers to directly buy goods or
services from a seller over the Internet using a
web browser

online shop evokes the physical analogy of buying

products or services at a bricks-and-mortar
retailer or shopping center

12/24/15

In store
Almost two-thirds of them go to enclosed malls at
least once a month

Gen Y is cost-conscious, reflected in heavy

patronage of discount department stores, warehouse
clubs and discount supermarkets

Gen-Yers are multichannel shoppers, but in terms of

purchases, stores still dominate

12/24/15

SECTION C
Problem statement : Does the gen Y follow a proper decision making
process when purchasing online or in store shopping ?

Gen Y consumer decision-making process encompass

research, polling peers, finding authencity and brand

loyalty
Consumers are brand conscious buyers
The reason of the purchase made usually bound to their
surrounding as they were following the current trend
just to be able to fit in a particular social group, buy
buying branded products

 Generation Y consumers are likely to have developed a

different shopping style compared to previous

generations, which is extremely sensitive to changes in
fashion
consumers product preference and buying patterns
are constantly changing depends on different stages
consumers decision making has three sets of variables
which are :
-input
-process
-output

12/24/15

PRODUCT PREFERENCE

BUYING PATTERNS

gen y have their own buying patterns. They no longer follow

their spending limits. They spend more of their spending on

goods requirements of their needs
The prices buying in the store are slightly more expensive than
items in an online business because it included a tax business
deal of the store and money for they rent that place
12/24/15

A model of Gen Y decision making has three major

components :

A SIMPLE MODEL OF CONSUMER DECISION MAKING

INPUT

influences the consumers recognition of a product need and consists of two major
sources of information:
-the companys marketing efforts and
-the external sociological influences on the consumer
youngster always encouraged by the people surrounding them to share their opinions
translated into the group who feel that their opinions are always welcomed and needed
draws on external influences that
-provide information
-influence a consumers product-related values
-attitudes
-and behaviour
attempt to communicate the benefits of their products and services to potential
consumers and the non-marketing social cultural influences, which, when internalized,
affect the consumers purchase decisions

a) Marketing input
direct attempt to :
-reach,
-inform,
-and persuade consumers to buy and use its products.

The impact of a firms marketing efforts is governed by the

consumers perception of these efforts

Marketers should be alert to consumer perceptions by

sponsoring consumer research, rather than relying on the

intended impact of their marketing messages.

b) Sociocultural Inputs
Sociocultural inputs consist of :
-non-commercial influences-comments of a friend,
-an editorial in the newspaper,
-a family member,
-and direct non-commercial sources of information

The unwritten codes of conduct communicated by culture indicate right and

wrong consumption behaviour

The cumulative impact of :

-each firms marketing efforts
-the influence of family, and neighbour, and societys existing code
of behaviour are all likely to affect the how and what of consumer purchases

Need
Recognition

Prepurchase
Search

Evaluation of
Alternatives

NEED RECOGNITION

Present
Status

Preffered
state

Prepurchase Search

12/24/15

12/24/15

12/24/15

12/24/15

12/24/15

12/24/15

PSYCHOLOGICAL FACTORS

12/24/15

12/24/15

12/24/15

Learning...
Changes in an individuals behavior arising from
experience
Occurs due to an interplay of drives, stimuli,
cues, responses, and reinforcement
Strongly impacted by the consequences of an
individuals behavior
Behaviors with satisfying results tend to be
repeated

12/24/15

SECTION D
Problem Statement : What factors influence the Gen Y
decision making ?

Why we study about psychological factors only ?

Does all this psychological factors influence the Gen Y ?

THE DECISION MAKING STYLE OF

GEN Y

Psychographic / Lifestyle
Approach

Gen Y Characteristics Approach

Gen Y typology Approach

PROPER DECISION MAKING

PROCESS
ONLINE
IN STORE
Consumer decision-making styles encompass research,
polling peers, finding authencity and brand loyalty.

Consumers are brand conscious buyers who place

consumer-driven marketing over messages they perceive
to be company promotions.
12/24/15

WAYS:
1) Problems or needs recognition,
2) information search,
3) evaluation of alternatives to meet this need,
4)purchase decision and post-purchase behavior.

12/24/15

 Buying patterns of gene y use when

shopping at the store a little different from
the online business.

Buying items in the store have to sacrifice

time, energy and cost a little high.

The prices are also slightly more expensive

than items in an online business.
12/24/15

DECISION MAKING STYLE OF

GEN Y
Consumer decision-making style

Mental orientation or approach that a

consumer has in making choices, which
involves the cognitive and affective
components of a purchase process.
12/24/15

Consumer classifications that can be used to

profile consumers in decision-making.
Psychographic/ lifestyle approach
Consumer characteristics approach
Consumer typology approach
12/24/15

 Psychographic/ lifestyle approach

Consumers different personality characteristics,
attitudes, opinions, values, activities, interests,
choices in order to segment consumers in the
market.

Psychographic/lifestyle approach allows a

population to be viewed as distinct individuals with
feeling and tendencies, addressed in comparable
groups to enables marketers to tailor strategies to
fulfill the target market needs.
12/24/15

 Consumer characteristics approach

The cognitive and affective orientations
towards purchasing in consumer decisionmaking.

Widely acknowledged by consumer

researchers as the most easily explained
and powerful construct.
12/24/15

 Consumer typology approach

Defines as general consumer types, such as
price-oriented shoppers, problem-solving
shoppers, impulse shoppers and
convenience shoppers.

The consumer typology is also associated

with shopping orientation.
12/24/15

 Shopping orientation is recognized as a

complex social, cultural and economic
phenomenon.

The basic premise of shopping orientation

is that shoppers with different orientations
have different market behaviours, including
different needs for information source and
different store preferences.
12/24/15

PART 3 :
CONCLUSION
Recommendations
Implications

RECOMMENDATIONS
majority of Generation Y consumers in this study do pursue quality, even if it
means higher prices

recommended that retailers should :

-continue to emphasise their well-known brand names
-set prices at levels where consumers perceive the quality of the product
according to its price
-focus on diverse designs, sizes and colours in their product assortment and range
-introduction of new products through the use of fashion shows, fashion
magazines and advertisements to create brand awareness

 apparel retailers should keep abreast of the consumers needs by :

-introducing new products continually that are also fashionable and
attractive
-need to be aware that the preferences of Generation Y consumers differ
quite markedly
-they need to ensure that they promote the brands they carry more
regularly update their stock to make sure they have the newest fashion
trends in stores
-retailers should try to use communication channels which will be more
understandable to Generation Y consumers
-provide consumers with information that can assist them to make better
informed decisions in their purchase
12/24/15

IMPLICATIONS
Future research should :
-accommodate other generation cohorts so that valuable information could be
obtained to segment markets and to develop appropriate marketing
communication strategies
-consider both a qualitative and quantitative analysis using triangulation
methodology, whereby a qualitative design could be used to analyse the
personality of Generation Y consumers and their buying behaviour
-replicate the study in other provinces in order to test the relevance and
reliability of the scaleFuture researchers could replicate the study in other
provinces in order to test the relevance and reliability of the scaleFuture
researchers could replicate the study in other provinces in order to test the
relevance and reliability of the scale

examine the applicability of the Consumer Style Inventory (CSI) across

different cultures in order to generate more robust support within the
South African context
-to understand the purchasing behaviour of Generation Y consumers
-younger consumers are more confused than the older consumers
-younger generation is the fundamental group to influence others as they
are the opinion leaders
-older consumer needs more encouragement and heavily involved in wordof-mouth promotion during their decision making process
-youngster tends to explore more information than older consumer during
their decision making process
-youngster consumer generation are less brand loyal than the older
consumer generation
12/24/15

PART 4 : REFERENCES AND

CITATION