Marketing to the 90s Generation

Marketing to the 90s Generation

Global Data on Society, Consumption, and Identity

Anders Parment

marketing to the 90s generation

Copyright © Anders Parment, 2014.Softcover reprint of the hardcover 1st edition 2014 978-1-137-44429-5

All rights reserved.

First published in 2014 byPALGRAVE MACMILLAN®

in the United States—a division of St. Martin’s Press LLC,175 Fifth Avenue, New York, NY 10010.

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ISBN 978-1-349-49560-3 ISBN 978-1-137-44078-5 (eBook)DOI 10.1057/9781137440785

Library of Congress Cataloging-in-Publication Data

Parment, Anders, 1972– Marketing to the 90s generation : global data on society,

consumption, and identity / by Anders Parment. pages cm Includes bibliographical references and index. 1. Young adult consumers. 2. Generation Y. 3. Marketing. I. Title.

HF5415.332.Y66P37 2014658.89343—dc23 2014025177

A catalogue record of the book is available from the British Library.

Design by Newgen Knowledge Works (P) Ltd., Chennai, India.

First edition: December 2014

10 9 8 7 6 5 4 3 2 1

Contents

List of Figures vii

List of Tables xiii

Preface xv

1 The 90s Generation 1

2 Introduction to Generational Studies 29

3 The 90s Generation and Society 59

4 The Market Environment 89

5 The Cultural Environment 129

6 The 90s Generation as Consumers and Coworkers 147

Appendix: Methodological Considerations 163

Notes 167

References 169

Index 181

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Figures

1.1 The extent to which students in secondary school believe they can influence society in general in 1992 compared with 2012 8

1.2a Criteria for the 90s Generation when applying for a new job. The categories are derived from in-depth interviews. Data in percentages 10

1.2b Criteria for the 90s Generation when applying for a new job. The categories are derived from in-depth interviews. Data in percentages 10

1.2c Criteria for the 90s Generation when applying for a new job. The categories are derived from in-depth interviews. Data in percentages 11

1.3 How important is it for you to please your parents and make them proud of you? The 90s Generation. Data in percentages 18

1.4 How important is it for you to please your parents and make them proud of you? The 80s Generation. Data in percentages 18

1.5 To what extent are your parents involved in your decisions? The 90s Generation 20

1.6 To what extent are your parents involved in your decisions? The 80s Generation 20

1.7 Processes and expressions during the coming-of-age period 27

2.1 The 90s Generation individuals from the United States were asked to mention the most influential world events during their coming-of-age period. In total, 117 individuals responded 41

2.2 The 80s Generation individuals from the United States were asked to mention the most influential world events during their coming-of-age period. In total, 92 individuals responded 41

viii Figures

2.3 Baby Boomer individuals from the United States were asked to mention the most influential world events during their coming-of-age period. In total, 140 individuals responded 42

2.4 The 90s Generation individuals from Germany were asked to mention the most influential world events during their coming-of-age period. In total, 200 individuals responded 43

2.5 The 80s Generation individuals from Germany were asked to mention the most influential world events during their coming-of-age period. In total, 179 individuals responded 43

2.6 Baby Boomer individuals from Germany were asked to mention the most influential world events during their coming-of-age period. In total, 199 individuals responded 44

2.7 The 90s Generation individuals from Sweden were asked to mention the most influential world events during their coming-of-age period. In total, 110 individuals responded 45

2.8 The 80s Generation individuals from Sweden were asked to mention the most influential world events during their coming-of-age period. In total, 126 individuals responded 45

2.9 Baby Boomer individuals from Sweden were asked to mention the most influential world events during their coming-of-age period. In total, 130 individuals responded 46

3.1 Opinions on America. Median percentages from 16 countries surveyed in 2007 and 2012 69

3.2 Percentage of individuals in the 18 countries who like American music, movies, and television 70

3.3 Respondents of different age, percentage that likes US music, movies, and television 71

3.4 Individuals with and except college degree on whether they like American music, movies, and television 72

3.5 In most countries, young people are more likely than their older counterparts to say it is good that American ideas and customs are spreading. Question on whether young people are more open to American ideas and customs 73

Figures ix

3.6 Young people are more positive about US-style democracy and the differences are very significant 75

3.7a How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Brazil 78

3.7b How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Britain 78

3.7c How do you think your standard of living will be compared to that of your parents at the same age? Percentages, China 78

3.7d How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Czech Republic 79

3.7e How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Egypt 79

3.7f How do you think your standard of living will be compared to that of your parents at the same age? Percentages, France 79

3.7g How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Germany 80

3.7h How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Greece 80

3.7i How do you think your standard of living will be compared to that of your parents at the same age? Percentages, India 80

3.7j How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Italy 81

3.7k How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Japan 81

3.7l How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Jordan 81

3.7m How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Lebanon 82

x Figures

3.7n How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Mexico 82

3.7o How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Pakistan 82

3.7p How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Poland 83

3.7q How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Russia 83

3.7r How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Spain 83

3.7s How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Tunisia 84

3.7t How do you think your standard of living will be compared to that of your parents at the same age? Percentages, Turkey 84

3.7u How do you think your standard of living will be compared to that of your parents at the same age? Percentages, United States 84

5.1 Would you feel uncomfortable discussing any of the following topics with your friends? Categorized based on generational cohorts. Percentages 138

5.2 Would you feel uncomfortable discussing any of the following topics with your friends? Categorized based on whether the respondent lives in a metropolitan area, an intermediate city, or a rural area. Percentages 139

5.3 Would you feel uncomfortable discussing any of the following topics with your friends? Categorized based on country. Percentages 139

6.1 When asked about the importance of long opening hours when buying a car 150

6.2 Perceptions of the Audi brand among younger and older individuals 155

Figures xi

6.3 Citroën provides a contrast to Audi. In all aspects except “up-to-date”, “daring”, “wholesome” and “down-to-earth”—again, not necessarily attractive characteristics in building emotional and appealing auto brands—the Citroën brand is stronger among older individuals. Percentages 156

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Tables

1.1 When does an individual typically come of age? 234.1 Why do you use social networks? Percentages. Respondents

were permitted to fill in more than one alternative 1136.1 Key differences between established conceptions

about the labor market and conceptions that gain foothold with the emergence of Generation Y and the 90s Generation coworkers 160

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Preface

In their roles as product and service providers or employers, orga-nizations may experience and respond to generational differences and challenges in many ways. Yet many contemporary and popular approaches to understanding differences between generations are pre-sented as toolkits that provide simplistic characterizations of genera-tions and intergenerational relationships.

Why Write This Book?

There are many newspaper stories, magazine articles, consultant press releases, and an increasing number of books on Generation Y and Millennials, and the same increasingly holds good for the 90s Generation. After having produced at least 20 books, articles, and book chapters on Generation Y, in my definition, largely those indi-viduals born in the 1980s, it is now time to create the first profound observation of people born in the 1990s. Why not earlier? The most common question, without any doubt, when I give speeches and lec-tures is how the 1990s Generation will influence business, work-places, and society.

The reason I haven’t presented any insights so far is that, according to a solid stream of research, which I’m to an extent a part of, the val-ues and traits of an individual, and hence the generational cohort she or he belongs to, is shaped between 16 and 24 years of age. Definitions vary but it’s clear that the coming-of-age years are very important in shaping values, and the society in which an individual comes of age has a strong influence on the values that will guide the individual for the rest of her or his life.

A variety of media channels report on young people and how they are different from earlier generations. Many channels, for example,

xvi Preface

newspapers, blogs, and television, provide overly generalized descrip-tion, something that should be of no surprise given the lack of space and time to create a profound analysis based on solid research. Another problem is that, too often, young individuals are presented with a negative bias based on a combination of a lack of understand-ing about what shaped this generation—that is, the coming-of-age environment—and anecdotal examples. Taken together, this results in the younger generation not being presented in a beneficial or an adequate way.

Young People Are Often Negatively Portrayed

Although well aware of the risk of making such statements, I would suggest that there is, in general terms, a negative bias in the way older people describe their younger colleagues, generations, politicians, or whatever role the younger people might be in. Ever since Socrates—or even those earlier—described young people in negative terms, ten-sions among generations have been an issue. Socrates once reasoned as follows:

Our youth now love luxury. They have bad manners, contempt for authority; they show disrespect for their elders and love chatter in place of exercise; they no longer rise when elders enter the room; they contradict their parents, chatter before company; gobble up their food and tyrannize their teachers. (Connolly, 2011, p. 78)

To be honest, it’s frustrating to get older and experience the transition into being retired. It’s complicated to relate to younger in-laws who are more successful and insightful than oneself. Many people hold negative attitudes about young people. It’s tough to realize that the best young people in my workplace have more energy than me, they work smarter, and they may even have a higher salary. Why is that a problem, given the person’s higher performance—please step out of yourself and think new! Learn from the youngsters instead of using an irrelevant set of poorly founded ideas about who they are, just for the sake of protecting yourself! It will not work in the long run if you want progress and prosperity. This call is directed toward me as well as others struggling with the insight—whether one is confessing it or not—that young people do have advantages and there is something to learn from the way they behave.

Preface xvii

Older people have every reason to take advantage of their expe-riences and few would complain if they take the opportunity to relax a bit after many years as hardworking employees. But if they complain about young people based on arguments that lack rele-vance, they undoubtedly contribute to enlarging generational con-flicts. And, at the end of the day, conflicts between generations are good for society since it develops through a constant challenge of ideas—ideological, political, financial, social, and cultural—both at an aggregate societal level and in individuals’ attempts to carry on everyday life.

While there are certainly truths underlying these opinions, I’ve often wondered why, particularly in today’s challenging times, we aren’t eager to seek out more positive stories about the individuals to which the future belongs.

Many things shape people’s and, in aggregate terms, society’s atti-tudes toward a generation. This book, like largely everything written and said about a generation, makes a significant contribution to the attitudes and myths people perpetuate.

The selection of countries, socioeconomic groups, professions, and examples has, to some extent, been made through identifying inter-esting material and thoughts that emerged while working with the book, including previous research and consultancy experiences on generational cohorts. It would have been impossible to cover every nation, socioeconomic group, circumstance, and issue that would be interesting. Hence, the book has a broad approach but does in no way claim to cover every aspect of the 90s Generation. Readers may hence have to apply their own thoughts to the target groups or whatever they want to study. Nonetheless, I’m sure this book will be useful for such purposes.

The book emphasizes on individuals with skills, courage, and self-confidence. The basic reason is that employers, companies offering something to consumers, unions, political parties, and many other organizations focus on the high-performers, something that is likely to be strategically smart since the high-performers are likely to lead the development toward the future. The book attempts to introduce and create a solid foundation of the perspective of generational cohorts, hence serving as a knowledge source as well as a practical guideline for decision makers in organizations who want to explore the oppor-tunities that emerge from understanding the 90s Generation in terms of a stronger appeal to the 90s Generation audiences.

xviii Preface

Conceptual Foundation of the Book

This book attempts to be well founded in research and experiences, while at the same time being accessible—preferably in an easy way—to practitioners. It may sound difficult and it’s definitely a tricky bal-ance. But this challenge will certainly contribute to filling the book with concepts and examples that unite the academic perspective, that is, the research-based and conceptual perspectives, with a way of presenting reasoning, analysis, and findings that appeal to a broader audience.

This ambition mirrors the one to deal with the 90s Generation in a systematic, research-based way. The foundation of the book is twofold: first, a substantial research body on characteristics and behaviors of the 90s Generation, including their relation with other generations and the role of understanding generations in developing effective and attractive organizations; and second, experiences and best practice for reaching, attracting, recruiting, selling to, and com-municating with the 90s Generation, based on my experiences from hundreds of organizations where I have worked as a consultant.

There must not be a conflict between these perspectives, though. A practitioner may benefit from obtaining a qualified analysis based on research and extensive studies, and the research foundation becomes richer by infusing the analysis, its operationalization, and communi-cation with a variety of consultancy and best practices experiences.

Who is the target group of this book? It deals with the 90s Generation from different perspectives, and it deals with consumer and labor markets as well as its effects on society. Hence, it attempts to unite theoretical perspectives as well as applications in different contexts. Through applying sociological, political science, economist, market-ing and human resources perspectives, this book belongs to interdis-ciplinary research. From a theoretical perspective, it is founded on an eclectic tradition that has the empirical phenomenon—the 1990s Generation—in the foreground. Hence, theoretically, this book will contribute to the understanding of generational cohorts in marketing research, and the impact of generations on employee–employer rela-tions and other societal contexts.

Writing a book certainly is not a trivial endeavor, but in the case of this book, all phases—from data collection to writing the conclu-sions—have been characterized by a great deal of pleasure. Writing about generational cohorts is really interesting and there are always

Preface xix

new nuances and ideas on how individuals and generations could be understood.

The data collection covers a whole range of phases conducted dur-ing the spring seasons of 2010 to 2014. The main data were collected in summer of 2013 with 4,707 complete survey answers obtained in the United States, China, Germany, and Sweden. Data from the United States, Canada, Sweden, and New Zeeland were collected in 2011. Research data from the Washington, DC–based PEW Research Center have been used. PEW data cover numerous countries around the globe. In addition, several focus groups comprising individuals from various countries have been conducted. There is certainly a West world bias in the emphasis of the data; however, a global analysis (if such a thing exists) of the data has been attempted, and a sufficient amount of data from non-Western countries, emerging countries, and the Third World (where reliable data collection is often very diffi-cult) is at hand. But my career as a researcher of generational cohorts started in Dornbirn, Austria, in the autumn of 2006. In the first phase, 35 interviews with people from Germany, Austria, Sweden, Belgium, Spain, Mexico, United States, and India were conducted. Several survey studies other than those mentioned here have been conducted since.

Although this book has an ambition to be global and is written to appeal to a global audience, it is unavoidable that there will be some bias, since my experiences are limited primarily to Europe (with a significant Western Europe basis), America, Australia, China, Russia, and Brazil. I have been traveling to most parts of the world, but not always with data collection as a primary priority, although it’s difficult to avoid thinking about generational stuff when one is traveling.

There is little doubt this book contains and represents numerous generalizations; hence, my contribution to generalizing society and its institutions may be numerous and hopefully not taken too far. To the extent that generalizations have been done, it has been made for the sake of simplicity and ease of communication and not to suggest that individual human beings’ characteristics should not be considered. An individual represents a multitude of characteristics, each influencing how one perceives one’s identity as it relates to the social world. This, in turn, will affect how they behave as consumers and coworkers. Examples of key characteristics in understanding individuals include

xx Preface

the family structure—whether a person grew up with one or two par-ents, as the only child, or with five sisters and two brothers; in a rural area or in a metropolitan city center; with left-wing or right-wing political attitudes; and many other dimensions.

In writing this book, I was certainly triggered by the multitude of ideas on the 1990s generation, like on other generational cohorts, which were based on research institutes and others that solely relied on survey studies. Researchers have known for ages that surveys cer-tainly might be used for measuring attitudes, behavioral traits, and preferences in various areas, given the fact that the issue at hand is clearly defined and the context of the issue is understood. In many cases, though, using surveys solely is a dangerous practice. There is a substantial risk that the context and fundamental mechanisms of the behavior one wants to understand are not understood. There are many instances of this such as that of an internationally operating research company specialized in defining and understanding generations. In 2007, this group of “researchers” suggested that people born in the 1990s are characterized by “Indian values,” meaning they will work hard to realize their life intentions. This appears to be very unlikely in the context of “saturated” Western countries that for a long time have struggled with the lack of energy to put into work by young people. In 2010, however, the same research company suggested that people born in the 1990s want a calm family wife, and many females want to be housewives for a lifetime. This generates two insights: first, attitudes change fast during the coming-of-age years, not least through influences from the popular culture. One explanation might be that too many of them are inspired by the Desperate Housewives and similar influences in the popular cultural sphere. Second, surveys must be part of a broader data collection and understanding of the phenomena at hand.

Apart from the limitations that my country of origin imposes, I realize that my perspective is restricted also in some other respects and that may limit the applicability of the findings presented in this book. I’m born in September 1972 and have lived most of my life in Sweden and in city and metro areas. So my experiences are certainly restricted. I have a high level of education but that not only makes me see things, it may also restrict my perspectives. My father is a retired political scientist and he often says I’m too focused on successful peo-ple when I’m writing. Sure, I’m a marketer and I’m more interested in people who buy than those who don’t. My brother sometimes criti-cizes me for similar reasons. So my perspective is certainly limited.

Preface xxi

My parents brought me to many interesting places in the world at an early stage in my life, and my fantastic family and many great friends gave—and give—me perspectives and ideas. I think I have a diversi-fied group of people around me in my social setting, but it’s probably less diversified than I believe—just like CEOs use to say, “I want no yes-men,” but nonetheless they recruit people like themselves to the board of directors.

Along the way, I have met many people who contributed to strength-ening my skills in analyzing generations. Many people deserve to be mentioned here, and I would especially like to thank two people who have been very important in developing my skills: first, Ulrik Simonsson for helping me with a lot of material and, even more importantly, intellectually through providing interesting perspectives and thoughts. Second, Charles Schewe, professor of Marketing at the Isenberg School of Management, University of Massachusetts, with extensive research and consultancy experiences in the field of genera-tional marketing.

Needless to say, I’m responsible for any mistakes or misinterpreta-tions along the way of writing this book.

Stockholm, October 2014Anders Parment