Generation Y are the members of our society born between approximately 1977 and 1994. While currently at the ages of between 19 and 36 they are the most educated, well-travelled and technologically sophisticated (Suzanna M. Crampton, 2009) generation yet. They are also more socially aware of the different cultures and ethnic diversity surrounding society than any other generation.
So why would marketers need to know about Generation Y?
As Generation Y continue to enter the workplace and are becoming an increasingly larger part of the workforce (Suzanna M. Crampton, 2009) they are entering their prime spending years. And just how much does Gen Y spend? Well, in the US, gen Y’s annual spending power exceeds $200 billion (Escalera, 2011) – which gives the indication that Gen Y are the biggest spending demographic for marketers. With a “live in the moment” attitude, Generation Y are known to spend their money on the latest products that boost their self-esteem and ego. With reference to Maslow’s Hierarchy of needs – Generation Y most commonly spend their money to satisfy their need for self-esteem, confidence, and respect by others (clothing, electronics, cars and jewellery).
Gen Y have witnessed global social change including the Gulf Wars, terrorism and the Global Financial Crisis, (which left many elderly couples stripped of their savings and superannuation); this made the gen Y’s more aware that ‘nothing is forever’ specifically in regards to their financial stability – hence their “Live in the Moment” attitude. This global social change has also opened a younger generation of awareness for the environment, welfare and aid – encouraging them to donate and support causes often.
Known as AORTA’S which stands for Always Online and Real Time Available – Gen Y are exposed to more information than ever before. Through online social media, internet on their phones, tablets and laptops, as well as instant video calls and text messaging, it doesn’t take long for word of mouth to grow throughout the generation and trends to become established. Online advertising and direct response marketing effectively expose a product or service to the largest spending generation in the quickest form available.
Leanna Haines
25th April 2013
Comments