Consumer Behaviour

Gen X, Gen Y, and The Elderly: Impact on

Elderly

General: Idealist
Born between 1945 and 1964: most of todays
world leaders and executives.
The fastest growing segment of the population.
They perceive themselves as younger than their
years (cognitive age versus chronological age).

Consumer Behaviour
Households are small and their need for new
purchases is limited.
Enjoy convenience in the marketplace and
appreciate their leisure time.
Although brand loyal, they only tend to try new
products or brands if given good reasons to do so.
Enjoy buying for themselves, for their homes, and
for others.

Generation X

General: Reactive
Those born between 1965 and 1977 (40 million
people).
First too be deeply affected by divorce, saw their
families encounter several periods of economic
turbulence.
Are now young adults who are driving the new hitech economy, forming families, and becoming an
increasingly positive economic force.
Look for a balance between work and leisure.
Consumer Behaviour
Distrustful to marketing.
Not drawn to traditional forms of advertising (i.e.
hyping up products).
Express their need to stay in control by purchasing.
communications equipment such as fax machines,
e-mail, and mobile phones.
Do not like labels, are cynical and do not want to be
singled out and marketed to.

Generation Y

General: Civic
Primarily the offspring of the Baby Boomers.
Pragmatic and hard working, with emphasis on independence and individuality.
Economically more optimistic than previous generations, holding a positive outlook as
a result of growing up in a time of prosperity.
Consumer Behaviour
Remarkably sophisticated consumers with a high level of brand awareness.
And they are healthy spenders.
Their parents make all the important decisions.
Tend to think of their image before purchase any product.
Disloyal to brands but highly loyal to relationships.
Most influenced by friends and peers.
Short attention span.

One Example To Sum It Up

Differences Relevant to a
Retailer

PARAMETER

GEN X

GEN Y

ELDERLY

Consumer
Type

Sincerity appeals

Smart (aware)
consumer

Motivated Consumer

Role in family

Decision makers and

Information
Gatherers

Strong Influencers

Decision Maker

Media Habits

TV strongest
medium

TV, Internet

Newspapers a
widespread medium

Purchase
Behaviour

Materialistic/cynical

Savvy ,Pragmatic

Narcissist,
Consumption
Oriented

Technology

Use technology

Assume technology

Have technology

Price Quality

Price Oriented

Value oriented

Conspicuous
Consumption

Attitude
towards Brand

Rebel against hype

Rebel against hype

Respond to image
building type

Loyalty

Not really: Attitude of

getting the best deal

As long as convenient

Brand Loyal

Diversity

Accept

Celebrate

As a cause

Shopping
Behaviour

Self reliant /
individualistic

Self-inventive /
individualistic

Mass movement

Appealing
themes/

Beverages, snacks,
footwear and music

Entertainment /
Clothes and

Groceries, household
necessities

Case Studies in Retail

Gen-X
Amazon.com No nonsense retailer which appeals to the generations use of
different media and value
Gen-Y
Apple - Most admired brand by Gen-Y, So clean and simple and easy to use, No excess
Elderly
Harley Davidson - The ultimate luxury, also a statement of freedom and lost
youthfulness

Generation Generation
X
Y

Step

Elderly

Problem
Recognitio
n

Only resort to
necessary purchases,
less exotic or luxury
items, simpler
lifestyles

Self-aware, will try to

upgrade lifestyles, but
still conservative

More self-aware and

more interested in
maintenance and
recent trends

Informatio
n Search

Extensive in case of
high-involvement or
high-risk products

Rely on traditional ATL

advertising (TV ads)
plus the Internet,
occasionally seek peer
groups

Extensive across
categories, seek
information on
Internet, from peer
groups

Alternativ
e
Evaluation
and
Selection

No interest in fashion,
high-end items must
represent value for
money

Less interested in
trends and more
stinted in overall
spending

Spend more freely

and show more
interest in fashion
and style

Trade off between

time spent shopping
and desire to make a
good buy. A mix of
multi-brand outlets

Prefer exclusive
outlets for up market
items such as
durables due to their
exclusivity, but
otherwise prioritize

Outlet
Selection
and

Prefer locations that

give good buys and
encourage touch-andfeel i.e. where they
can get a better first-

Implications for Retailers

Step in Decision
Model

Key Trait or Constraint for

Retailer

Problem Recognition

Consumer self-awareness, interest level in

style and fads

Information Search

Right level of information for a given

category, increasing use of Internet and
non-traditional media

Alternative Evaluation and

Selection

Price, value for money, interest in style

Outlet Selection and Purchase

Convenience, number of brands available,

exclusivity

Post-purchase Processes

After-sales service, service experience

The Ideal Retail Mix

 They travel the most for the

goods/brands they like.
Store Ambience not a strong
driving factor.
Place
Conspicuous
consumption
Product
Luxury for retired Value
lives
Do not spend on
goods they dont
People Communicat
need.
ion

Highly Social and Demand

Service
Value Personal
Recommendations and expert
opinion

Most brand loyal

Most of the
marketing spend
today is on them

Traditional mass media

advertising and word-of-mouth.
Not very open to internet, social
media.

Clean Ambience Tidy, AC etc.

Trade off between distance
travelled and quality of goods
available.
Place
Offer Value and
Live Up to
Claims - Like
Products that
Value
Product
Deliver
Better to use
Market Penetration
Than Price
People Communicat
Skimming
ion

Listen more to the sales-person

than Ads
Like Personalized attention

High Quality
Product with
longer Life but
affordable price
tags
Experiment with
brands Least
Brand Loyal

Direct Mailers Receptive to

Uniqueness
Highly Individualistic Campaigns
Interactive Advertising Using
New Media
Dislike The use of Role Models

Value for money,

information
seekers for up
market categories
Low decision
making for nonnecessary
products

Prefer Convenience except for upmarket goods.

Prefer larger stores one stop
shopping
Store design contains areas for young
Collection/Variety
people to hang out.
of Products at
Place
lower costs Value
for money
More than a
Value
Product product Value
added benefits
and Exclusivity
don't like a hard
People Communicat
sell but brand
ion
and fashionconscious

Born into technology low social

interaction, high virtual
interaction

Creative Advertising Impulse Buyers

(Unplanned Buying)
Ads focus on high energy, with fastmoving visuals, splashy graphics,
brilliant colours
Fickle consumer 360 degrees
campaign

Sources

Stephanie M Noble & Charles H Noble Getting to know Y: The Consumption

Behaviors of new cohort, American Marketing Association Conference
Canadians Plastic Sector Council GenX /GenY Behavioural Research and Messaging
Strategy , March 2008
Enterprisingmuseum.com
Deloitte Consulting LLP Who are the Millennials, a.k.a. Generation Y, 2005
Retail buying criteria of X Generation consumers