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Millennial (Gen Y) Consumer Behavior, Their Shopping Preferences and Perceptual Maps Associated With Brand Loyalty

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Every generation has it's own characteristics. They have been affected by the changes of world and vice a versa they changed the world. Soon a new generation will rule the world and we have to prepare for it. Huge amount of information is now as distant as a cellphone. The old standards and ways should be redesigned and adapted to the new demands. The pessimistic point of view towards the millennial generation evaluates them as lazy, irresponsible, impatient, apathetic, selfish, disrespectful and even lost. But from the optimistic view they are labeled as open minded, social, innovative, energetic, ambitious, confident, motivated and smart. There seems to be one common idea; they love to buy. Consumer behavior is the main field and source for Customer Relationship Management (CRM) programs. It is important to evaluate and understand the patterns and motives behind shopping attitude. The main purpose of this research is to find out if the shopping patterns of the millennials are different from other generations. The secondary purpose of the study is to analyze if brand loyalty of millennials is associated with any other elements related to purchasing behavior.
Derived Stimulus Configuration for Boomers of experiences. Wars, natural disasters, financial crises, unemployment rates may affect the characteristics of the whole nation. Due to technological innovations now the impact of each incident exceeds the cultural borders of the nation. We might be the first generation watched a (Gulf) War lives on TV. We do not have to visit each store in order to make price comparisons. And we do not have to write a letter and expect for an answer for a couple of weeks. The pioneering technological innovation during the times of Baby Boomers was TV. Personal Computers changed the world during the times of Generation X. Hifi and Walkman was popular before Millenials. Now Members of Generation Y have all the information they need in their cellphones. It might be emphasized that generations have been transformed from " Hi-Fi " nation to " Wi-Fi " nation. The main scope of the study is to understand the decisions patterns of millennials and find out the basic similarities and differences between other generation cohorts. ANOVA technique is used to understand whether the mean differences of the attributes between generation cohorts are significantly different. Main attributes used in the study are labeled as Price (fairness of payment), Trend (popular or identified as " cool " by social media), Loyalty (psychological or mental attachment to a brand), Prestige (respect and reputation), Brand (well-known or recognized name), Fit (suitability of the product), Quality (excellence of standard, fulfillment of expectations), Recommendation (suggested
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40
ISSN 1712-8056[Print]
ISSN 1923-6697[Online]
www.cscanada.net
www.cscanada.org
Canadian Social Science
Vol. 11, No. 4, 2015, pp. 40-55
DOI: 10.3968/6697
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping Preferences and
Perceptual Maps Associated With Brand Loyalty
Güven Ordun[a],*
[a]Ph.D., Assistant Professor, Istanbul University, School of Business,
Department of Organizational Behavior Department, Avcilar Campus,
Istanbul /Turkey.
*Corresponding author.
Received 20 January 2015; accepted 14 March 2015
Published online 26 April 2015
Abstract
Every generation has it’s own characteristics. They have
been affected by the changes of world and vice a versa
they changed the world. Soon a new generation will rule
the world and we have to prepare for it. Huge amount
of information is now as distant as a cellphone. The old
standards and ways should be redesigned and adapted
to the new demands. The pessimistic point of view
towards the millennial generation evaluates them as lazy,
irresponsible, impatient, apathetic, selfish, disrespectful
and even lost. But from the optimistic view they are
labeled as open minded, social, innovative, energetic,
ambitious, confident, motivated and smart. There seems to
be one common idea; they love to buy. Consumer behavior
is the main field and source for Customer Relationship
Management (CRM) programs. It is important to evaluate
and understand the patterns and motives behind shopping
attitude. The main purpose of this research is to find out if
the shopping patterns of the millennials are different from
other generations. The secondary purpose of the study
is to analyze if brand loyalty of millennials is associated
with any other elements related to purchasing behavior.
Key words: Millenials; Generation Y; Shopping
preferences; Brand loyalty; Perceptual maps JEL
classification: D03, D12, M31
Ordun. G. (2015). Millennial (Gen Y) Consumer Behavior, Their
Shopping Preferences and Perceptual Maps Associated With
Brand Loyalty. Canadian Social Science
, 11
(4), 40-55. Available
from: http://www.cscanada.net/index.php/css/article/view/6697
DOI: http://dx.doi.org/10.3968/6697
INTRODUCTION
The changes in consumption expenditure can best be
understood by taking a generation approach. Generational
determined lifestyles and social values, exercise as much
influence on buying and purchasing as more commonly
understood demographic factors like income, education,
and gender do, perhaps even more. Different generations
and demographic consumer groups are exposed to: (a)
different social and economic opportunities and barriers,
(b) different types of technology activities, (c) different
social perceptions and different community norms, and (d)
different life experiences and events (Hume, 2010).
Consumer motivations and purchase engagement
often lie below the surface of age; we could gain a deeper
understanding by considering generational cohorts.
Generational cohorts are comprised of people who are
born during a particular period, and whose life courses
correspond to each other.
Generational cohort marketing has become a useful
tool in segmenting markets since cohort members share
similar values and generational cohorts have different
experiences, which influence their values, preferences and
shopping behavior (Parment, 2013). The buying power
of the baby boomer generation has been a driven for the
economy but this group is aging. Although it is still a
dominant market segment, there is another even larger
segment that spends a significant amount of consumer
goods. This group called Generation Y or Millennials has
become a major force in the marketplace.
Generation Y is three times more the size of
Generation X and constitutes the largest market since baby
boomers (Belleau & Summers et al., 2007). Determining
the specific factors that influence Millennials and their
purchasing attitudes and patterns has become an important
focus of consumer research as their potential spending
power, the ability to be trendsetters, adoption to new
products and potential for becoming a lifetime customer
(Martin & Bush, 2000)
41 Copyright © Canadian Academy of Oriental and Occidental Culture
Güven Ordun (2015).
Canadian Social Science, 11
(4), 40-55
1. DEMOGRAPHICAL CHARACTERISTICS
AND COMPARISONS OF GENERATION
COHORTS
According to researchers, macro-level social, political
and economic events that occur during the pre-adult years
of a cohort result in a generational identity comprising
a distinctive set of values, beliefs, expectations and
behaviors. These values, beliefs, expectations and
behaviors remain constant throughout a generation’s
lifetime (Jackson et al., 2011).
Four major cohorts exist in the United States. Builders
were born between 1920 and 1945; Baby Boomers
between 1946 and 1964; Generation X members were
born between 1965 and 1980 and Generation Y between
1981 and 2000. Millennials is somewhat different than
previous generations (e.g., fewer two parent families, more
dual income households, more women in the workforce,
and delayed childbearing). However, most of these
changes occurred gradually over time rather than suddenly
and thus their effects might appear to be more a function
of societal shifts that affect people of all generations
rather than just affecting one generation or another (Deal,
Altman et al., 2010). Cultural dependence of generation
cohorts is another issue. Whether cultural boundaries or
simply national borders affect the transmission of the
generation cohorts should also be investigated. In a global
world we can reach any information whenever we want
if only the information is inserted in the e-world. The
“Data” in e-world seems to be beyond the imaginations.
The number of text messages sent and received each
day exceeds the population of the earth. Two new blogs
created every second of every day and 1.6 million posts
are made on existing blogs each day. If you started today
it would take you over 4 hundred years to view all the
material on YouTube (Yarrow & O’Donnell, 2009). Still
in a global world can we say a teen in New York or Peking
has the same attributes, needs, expectations of the one in
Istanbul? Although a global generalization is not possible,
still it seems that significant incidents like wars, financial
crises or invention of the Internet that changes the world
has a similar effect on most of the nations.
Table 1
Global Generation Overview
1950 1960 1970 1980 1990 2000
China Post 50s generation Post 60s generation Post 70s generation Post 80s generation Post 90s generation
India Traditional generation Non-traditional
generation Gen Y
South Korea 475 generation 386 generation Gen X and Gen Y
Japan 1st
Boomer Danso generation Shinjinrui generation 2nd
Boomer Post bubble Shinjinrui junior Yutori
Russia Baby boomers Gen X Gen y (Gen “Pu”)
Bulgaria Post war generation Communist generation Democracy generation
Czech Republic Baby boomers Gen X – Husak’s children
generation Gen Y
South Africa Baby boomers Gen X Gen Y
Brazil Baby boomers Gen X Gen Y
US Baby boomers Gen X Gen Y
Source: David Hole, Le Zhong and Jeff Schwartz,
“Talking About Whose Generation, Why Western
Generational Models Can’t Account for a Global
Workforce”, On Talent, The Talent Paradox: A 21st
Century talent and leadership agenda, Deloitte University
Press (2010, p.100).
1.1 Baby Boomers and Generation X
The Baby Boomers (a.k.a. Boomers, Me Generation,
Baboo, Love Generation, Woodstock Generation,
and Sandwich Generation) have been described as
individualistic, competitive freeagents with strong
interests in self-fulfillment through personal growth.
They have lived through and actively participated in
political and social transformations such as the Civil
Rights Movement. This group has demonstrated a strong
work ethic and high job involvement, which has led to
economic security and career success (Jackson, Stoel et
al., 2011). Baby Boomer cohort said to have the following
characteristics; they (Jorgensen, 2003):
● Valueteamworkandgroupdiscussions
● Viewworkfromaprocessorientedperspective
● Believethatachievement comes after “paying
dues”
● Valuecompanycommitmentandloyalty
● Believeinsacrificeinordertoachievesuccess
● Seeklongtermemployment
Generation X (a.k.a. Baby Bust, Slackers, Why Me
Generation, and the Latchkey Generation) is one of the
most highly educated generations. Factors that drive
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping
Preferences and Perceptual Maps Associated With Brand Loyalty
42
Generation X behavior are their early disillusionment with
cultural icons, ongoing preoccupation with the Internet
and their seemingly infinite ability to simplify, streamline
and enrich the activities and relationships of their daily
lives (Jackson & Stoel et al., 2011). Members of this
cohort are said to have the following characteristics; they
(Jorgensen, 2003):
● Valueautonomyandindependence
● Thrivetoopencommunication
● Viewworkfromanaction-orientedperspective
● Donotbelievein“payingdues”
● Seektoacquireskillsandexpertise
● Donothavelongtermloyaltytoacompany(but
are loyal to individuals)
● Believeinbalancingwork-lifeobjectives
● Arereluctanttotakeonleadershiproles
1.2 Millennial Generation
Millennial Generation (a.k.a. Gen Y, Millennials, Echo
Boomers, Why Generation, Net Generation, Gen Wired,
We Generation, DotNet, Ne(x)t Generation, Nexters, First
Globals, iPod Generation, and iYGeneration).
The Millennial Generation is a new generation––the
children of the boomers. In the 1960s, the generation gap
was over differences in lifestyles and ideology between
parents and their children. Similar to their parents,
Millennials are not defined by demographics alone, but
rather by a combination of their demographic cohort,
values, life experiences, and buying behaviors (Leung,
2003).
Past generations worked mainly to secure comfort
and livelihood with the goal of making life better
prosperity. The focus was mainly on family and providing
a comfortable life for them. On the flip side, Millennials
have been much slower to get married and begin families.
With 75% of this generation are still single, demographers
and scholars have noted that perhaps other goals and
priorities have out-shined the focus of older generations
on the family and home. Gen Y is the first generation
that doesn’t need and authority figure to gain access to
information,resulting in auniqueand advancedgroupof
workers. They are the first global generation connected by
the Internet, and social media (Espinoza et al., 2010).
Millennials have been leading technology enthusiasts.
For them, these innovations provide more than a
bottomless source of information and entertainment,
and more than a new ecosystem for their social lives.
They also are “a badge of generational identity.” Many
Millennials say their use of modern technology is what
distinguishes them from other generations. A majority
of Millennials (56%), Gen Xers (52%) and Boomers
(54%) think technology helps people use their time more
efficiently, Three-fourths (75%) of Millennials have
created a social networking profile compared with 50%
of Gen Xers. Only 30% of Boomers and 6% of members
of the Silent generation have created their own profile on
a social networking site. Millennials are more likely than
older adults to use their cell phones to send and receive
text messages: 88% use their cell phones to text, as do
77% of Gen Xers and 51% of Boomers. Only 9% of those
in the Silent generation use their cell phones to text (Pew
Research Center, 2010).
Even Millennials are categorized into groups as 29%
Hip-ennial (I can make the world a better place), 22%
Millennial Mom (I’m too busy taking care of my business
and my family to worry about much else), 16% Anti-
Millennial (I’m too busy taking care of my business and
my family to worry about much else), 13% Gadget Guru
(It’s a great day to be me), 10% Clean and Green Millennial
(I take care of myself and the world around me9 and 10%
Old School Millennial (Connecting on Facebook is too
impersonal, let’s meet up for coffee instead) (Barton et al.,
2012).
1.3 Turkey Perspective
The population of Turkey became over 77 million
on December 31, 2014, 50% male and 50% female.
The number of people between 25 and 34 is over 12
million (16% of total population). (Address Based
Population Registration System, http://tuikapp.tuik.gov.
tr/ adnksdagitapp/adnks.zul). According to a research,
acceleration in social media usage in Turkey is much
higher comparing to Europe. Also it is specified in the
same research that Turkey is the seventh country in terms
of user numbers among European countries. Based on this
research, generation Y in Turkey can be regarded as heavy
users of social media as both producers and consumers of
the information. According to research by the U.S. Census
Bureau, International Programs Centre, by the year 2025,
Turkey will have the highest rate of young population
among European and surrounding countries such as
Cyprus, Ireland, Litvania, Russia, UK, Croatia, Norway,
France, Denmark, Holland, Hungary, Sweden, Greece,
Germany, Switzerland, Spain and Italy. Therefore, the
sheer size of Generation Y in Turkey makes this segment
a desirable target of marketing practitioners (Alan &
Eyuboglu, 2012).
2. BRAND LOYALTY
Allen and Meyer defined commitment as a psychological
state that binds the individual to the organization.
According to their commitment is conceptualized in
terms of three dimensions: Affective, continuance and
normative Affective commitment is a desire to belong
to the organization. Continuance commitment is based
on a belief that leaving the organization will be costly.
Normative commitment is the extent to which a person is
morally obligated to stay with the organization (Allen &
Meyer, 1990).
Different types of commitment to a brand are
investigated with the perspective of investment theory.
43 Copyright © Canadian Academy of Oriental and Occidental Culture
Güven Ordun (2015).
Canadian Social Science, 11
(4), 40-55
The central point of the investment model is building and
maintaining relationships. It represents an individual’s
previous experience and the long-term involvement in
a relationship. There are three antecedent constructs
to a commitment in the investment model. The first
antecedent is satisfaction. Satisfaction is conceptualized
as the extent to which customers are satisfied when a
relationship offers high rewards and lower costs. The
second antecedent of commitment in the investment
modelis thequalityof alternatives.Itis definedas“the
perceived desirability of the best available alternative to
a relationship” The third antecedent in the investment
model is the investment size, which refers to how much
customers have already invested in a relationship.
Continuance commitment is found be affected by
investment size and affective commitment by the level
of satisfaction. Preference and recommendation of
the service are mostly directed by affective type of
commitment (Nusair et al., 2011).
Brand loyalty is defined as (a) the biased (i.e. non
random), (b) behavioral response (i.e. purchase), (c)
expressed over time, (d) by some decision-making unit
(e) with respect to one or more alternative brands out of a
set of such brands, and (f) is a function of psychological
(decision making, evaluative) processes (Jacoby &
Kyner, 1973). So brand loyalty has two perspectives as
psychological and behavioral. Repeat purchase behavior
is an axiomatic term, which simply refers to the extent
to which consumers repurchase the same brand after
experiencing the brand. Since it is a purely behavioral
construct, it is simply measured as the number of times
a given brand is repurchased by a consumer in any given
period of time. In contrast, the term brand loyalty is a
complexconceptthat may requirebothpsychological
(commitment) and behavioral measurements. (Jacoby
&Chestnut,1978) Behavioralloyaltyrequireseither
purchasing a single brand in a consistent manner or at
least engaging four or more purchases from a single
brand when multiple brands are offered. In psychological
commitment consumer responds with the name of the
brandwhena questionisadministeredlike “whichbrand
do you prefer?” The third option is called as the composite
indices that consumer would only purchase from another
brand in case of emergency.
Therefore, loyalty is a concept that goes beyond
simple purchase repetitive behavior since it is a variable
that basically consists of one dimension related to
behavior and another related to attitude. The mentality
aspect is referred to as attitudinal loyalty in some
models, but because many other aspects than attitudes
exist in the customer’s mind, and because many other
psychological variables than attitudes have been used
as indicators of loyalty. Loyal behavior may include
thefrequencyof visits, levelofcrossbuyingand the
duration of the relationship while loyal mentality has
been examined in terms of attitudes and preferences
(Söderlund, 2006).
The benefits of consumer loyalty include (Duffy,
2003):
● Costsavings.Customerswhoareloyalarealready
familiar with your brand.
● Referrals. Customerswho becomefamiliar
with your brand mention it to their friends and
acquaintances.
● Complainrather thandefect.They believe in
the brand. They feel that it is their brand. They
wanttofixit.Theycomplainratherthanquietly
defecting. This
“second
chance
opportunity
is very important in today’s business
environment.
● Channel migration. Loyal customers are more
likely to buy through alternative channels
including the internet.
● Unaided awareness. Loyal customersare much
more likely to have your brand top of mind
in your category. So we might expect that
psychological loyalty be affected by behavioral
loyalty.
3. SHOPPING PREFERENCES AND
BRAND LOYALTY OF MILLENNIALS
A review of the popular literature suggests that the
Millennials ‘‘want it all’’ and ‘‘want it now,’ in terms
of good pay and benefits, rapid advancement, work/life
balance, interesting and challenging work, and making a
contribution to society (Ng, Schweitzer, & Lyons, 2010).
Through out their childhood, Gen Yers were told over and
over, “Whatever you think, say or do, that’s okay. Your
feelings are true. This is what child psychologists called
“positive tolerance” and it was only one step to damaging
cultural lies that somehow “we are all winners” and
“everyone gets a trophy” Millenials don’t look at a large,
established organization and think “ I wonder where I’ll fit
in your complex picture.” Rather they look at an employer
and think, “I wonder where you will fit in my life story”
(Tulgan, 2009).
Gen Y consumers are more aware of their purchasing
powerandare likely tospendtheircashas quickly as
theyacquireit,usuallyonconsumergoodsandpersonal
services (Der Hovanesian, 1999). Today’s consumers
won’t be “sold”; they want to be seen, known, and
respected – and only those marketers and retailers
that invest in relationships through empathy, deep
understanding and insight will prevail. Gen Yers demand
an authentic relationship based on a deep knowledge
of who they are and what makes them buy (Yarrow &
O’Donnell, 2009). Millennails seem to have a different
decisions pattern (psychological – mental state) towards
brand loyalty when compared with Baby Boomers.
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping
Preferences and Perceptual Maps Associated With Brand Loyalty
44
Table 2
Decisional Patterns of GEN Y Compared With Boomers
Generation Y Baby boomers
Many market opportunities An opportunity and source of inspiration Somewhat frustrating
Large supply of information Know how to navigate Stressful, takes time to deal with
Purchase criteria emphasis Emotional Rational
Main risks Social risk Physicalandnancialrisk
Choice of product Emotional Rational
Choice of retailer Rational Emotional
Retailer loyalty Low High
Attractive products Innovative, early adoption Mature, late adoption
Socialinuenceonpurchasedecisions High Limited
Sourceofsocialinuence Well-knownandinuentialpeople,friends Experts and close friends
Main role of the brand Image,socialprolingandquality Quality
Note. Source: Parment. (2013, p.192).
When compared with Generation X, Millenials also
seem to have distinct patterns that guide their purchasing
behavior (Noble et al., 2009). Gen X buyers pride
themselves as being independent and self aware from
an early age. They did not have buying power to use
products to define themselves in their formative years.
When younger, Generation X was seen as rebellious
and non-conformist. This generation still does not place
emphasis on what others think and isn’t concerned
with using products to display status or similarity with
others. Gen Xers have been said to feel alienated and
ignored by marketers and as such are unlikely to feel
that most companies or brands have an understanding
of their needs or personalities. Gen X is very motivated
to search for purchase-related information and is adept
at searching. Gen Xers tend to use information not as a
point of pride but as assurance that they are not being
taken advantage of by marketers and are getting the
best deal possible. Gen X is most likely to look for the
lowest cost item or discount rather than thinking of the
investment value of purchases. From watching their
parents become the first generation not to give or be
given lifelong loyalty by their employers, this generation
grew up with no desire to be loyal to corporations or
brands; skepticism and rebellion against their parent’s
brands prevailed.
Gen Y buyers select and consume products that helps
them to define who they are, what is important to them
and what they value in life also serve to express some
aspect of the their own personality or image. They use
their considerable knowledge about the latest trends,
images, and reputations of retailers, products, and brand
names to be considered experts or leaders among peers.
They have the desire to make the best decision in regards
tonotonly price andqualitybut gave consideration
to making good investments for the future. Millennial
customers found great confidence and trust in the brand
names of their choice.
4. METHOD
4.1 Hypothesis
This paper examines the loyalty in a mental stage and
asanattitude.Amongother attitude questionsthatguide
purchasing behavior; brand loyalty is asked in terms
of psychological preference of a brand. Others factors
arelabeledas price, trend,prestige,brand, fit, quality,
recommendation, advertisement, ambiance, availability,
variety and service.
Some similarities may be identified between
generation cohorts. For example Gen Yers and Boomers
share a heightened sense of obligation to make a positive
contribution to society and to the health of the planet. Also
overwhelming majority of Gen Yers (89%) and Boomers
(87%) say that having flexible work options is important.
(Hewlett et al., 2009). Each generation is influenced
by the times in which it grows up – the music, movies,
politics, and defining events of that period. Members
of a cohort share the same major culture, political and
economic experiences. They have similar outlook and
values. Marketers often advertise to a cohort group by
using the icons and images prominently in their experience
(Kotler & Keller, 2014). Although there might be some
similarities it is assumed that every generation cohort has
itsownunique characteristics (Ryder,1965).Depending
on this idea in their buying behavior and main factors
affecting buying behavior is supposed to be different.
Gen Y cohort is technologically advanced, entertainment
driven and shop online. They use the Internet for 15% of
45 Copyright © Canadian Academy of Oriental and Occidental Culture
Güven Ordun (2015).
Canadian Social Science, 11
(4), 40-55
their spending. In general this group embraces technology,
is difficult to reach out through advertising, but drove to
shop (Sullivan & Heitmeyer, 2008). So first hypothesis is
defined as:
H1: The importance of the factors affecting apparel-
buying behavior differs among Gen Y, Gen X and
Boomers.
GenerationYconsumershave a veryuniqueattitude
towards brands (Lazarevic, 2012). The lack of brand
loyalty by most Yers is possibly due to the fact that
they were exposed to more promotions versus brand
advertising while growing up. They will be brand loyal if
they trust the brand, however, that loyalty may only last
six to eight months (Reisenwitz & Iyer, 2009). Second
hypothesis is defined as:
H2: Members of Generation Y have less brand loyalty
than Members of Generation X and Boomers.
Last assumption of the study is that shopping patterns
of each generation cohort are different. Multidimensional
scale analysis is used in order to find out which factors
are associated with each other in different generation
cohorts. Multidimensional Scale Analysis can be
used in order to reveal out groupings (clumps) within
analyzed factors (Huang et al, 2005). And also whether
brand loyalty is associated with any of the remaining
factors.
4.2 Sampling
4,000 inventories have been distributed to the customers
of 2 different (one male and one female oriented) fashion
retail companies. Each company operates more than 200
nationwide and almost 100 international stores. After
the elimination of incomplete and inaccurate ones 2,068
inventories have been used for the analysis.
4.3 Questionnaire and Measures
A simple inventory is used with two sections:
demographics and attitudes. Gender and age are
asked in the demographics section of the inventory.
Age is grouped in order to fit with the explanation of
generation cohorts. The attitudes section consists of
13 attributes that affect buying behavior. There are
several inventories and methods (Wang et al., 2004;
Baumgartner & Steenkamp, 1996; Zeithaml, 1988; Li
& Zhang, 2002; De Cannière et al., 2009; Young &
Kim, 2004; Lachance et al., 2003; Auty & Elliott, 1998)
directed to analyze the buying behavior of the customers.
After the investigation of these inventories and methods
13 attributes are selected for the predictors of buying
behavior as price, trend, loyalty, prestige, brand, fit,
quality,recommendation,advertisement,ambiance,
availability, variety and service. A 4 point scales is used
as (1) as “least important” to (4) as “most important”. In
order to avoid misunderstanding each facet is explained
by a simple sentence.
● Price: fairness of payment requested by a seller
of goods or services
● Trend: being perceived as popular or being
identified “cool” by social media
● Loyalty: A mental or psychological state of
faithfulness or devotion to a brand
● Prestige: A good reputation and widespread
respect
● Brand: A well-known and widely recognized
name
● Fit: Proper size and shape of the product
● Quality: General excellence of standard
● Recommendation: A suggestion or proposal for
the preferred product
● Advertisement: A notice of announcement
promoting a product or service
● Ambiance: The character and atmosphere of a
store
● Availability: The quantity and the scope of the
stores
● Variety: Differentiated categories of the product
● Service: Adequacy, kindness and quality of the
staff
4.4 Analysis and Results
The demographic distribution of 2068 participants is
shown below. The majority of the sample belongs to the
group Gen Y. Gen X is the second biggest group in the
study. The total percentages of the Gen Z and Boomer
groups are approximately the same. Main intention of the
study is to analyze the similarities and differences among
generation cohorts so only age is considered as the only
demographical variable in all statistical analyzes.
Table 3
Sample Demographics
17- GENZ 18 --34 GENY 35- 50 GENX 51 + BOOMER TOTAL
MALE 47 415 318 202 982
FEMALE 292 399 268 127 1086
TOTAL 339 814 586 329 2068
PERCENTAGE 16% 39% 28% 16%
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping
Preferences and Perceptual Maps Associated With Brand Loyalty
46
Table 4
Mean Scores and Std. Deviations of Generation Cohorts
17 – GENZ 18 – 34 GENY 35 – 50 GENX 51 + BOOMER
Mean S.D. Dev. Mean S.D. Dev. Mean S.D. Dev. Mean S.D. Dev.
PRICE 3.37 .691 3.38 .669 3.36 .642 3.43 .596
TREND 3.02 1.003 3.14 .952 2.89 .971 2.70 1.072
LOYALTY 2.94 1.004 3.01 .976 3.23 .882 3.20 .822
PRESTIGE 2.87 .941 3.11 .948 3.10 .933 3.01 .953
BRAND 2.76 .909 3.07 .938 3.06 .917 2.89 .952
FIT 3.88 .437 3.83 .442 3.88 .333 3.74 .591
QUALITY 3.64 .641 3.79 .451 3.83 .381 3.77 .521
RECOMMEND. 2.54 .920 2.50 1.003 2.53 1.001 2.58 .991
ADVERTISEM. 2.44 .970 2.25 1.041 2.26 1.024 2.24 .989
AMBIANCE 2.98 .864 2.92 .999 2.84 .960 2.81 1.000
AVAILABILITY 3.30 .877 3.24 .926 3.23 .864 3.19 .814
VARIETY 3.67 .598 3.54 .752 3.50 .720 3.40 .835
SERVICE 3.55 .739 3.68 .600 3.64 .645 3.62 .702
Except Boomers, attribute fit has the highest
meanscores. For apparelbuyingbehaviorit is quite
understandable.ForBoomersqualityhasthehighestmean
score. Mean score for brand loyalty is the highest for Gen
X and lowest for Gen Z. Among all generation cohorts
trend seem to be most important for Gen Y.
To test the significant differences in mean scores
ANOVA Analysis is applied. Within 95% confidence
level, the differences among the mean scores of generation
cohorts for Price (fairness of payment), Recommendation
(A suggestion or proposal for the preferred product),
Ambiance (The character and atmosphere of a store) and
Availability (The quantity and the scope of the stores) are
not statistically significant. All generation cohorts have
the same kind of attitude towards price, recommendation,
ambiance and availability.
Table 5
ANOVA Table for Variable AGE
FSig.
PRICE .703 .550
TREND 17.371 .000
LOYALTY 11.238 .000
PRESTIGE 5.437 .001
BRAND 10.969 .000
FIT 8.294 .000
QUALITY 12.341 .000
RECOMMENDATION .557 .643
ADVERTISEMENT 3.155 .024
AMBIANCE 2.351 .071
AVAILABILITY .961 .410
VARIETY 8.161 .000
SERVICE 3.000 .030
Table 6
POST HOC Tests for the Variable AGE
(I) AGE (J) AGE Mean difference (I-J) Sig.
TREND 18 – 34 GENY
17 – GENZ .120 .061
35 – 50 GENX .248*.000
51 + BOOMER .436*.000
LOYALTY 18 – 34 GENY
17 – GENZ .068 .262
35 – 50 GENX -.225*.000
51 + BOOMER -.195*.001
PRESTIGE 18 – 34 GENY
17 – GENZ .238*.000
35 – 50 GENX .015 .773
51 + BOOMER .099 .110
To be continued
47 Copyright © Canadian Academy of Oriental and Occidental Culture
Güven Ordun (2015).
Canadian Social Science, 11
(4), 40-55
(I) AGE (J) AGE Mean difference (I-J) Sig.
BRAND 18 – 34 GENY
17 – GENZ .305*.000
35 – 50 GENX .008 .880
51 + BOOMER .175*.004
FIT 18 – 34 GENY
17 – GENZ -.058*.043
35 – 50 GENX -.055*.022
51 + BOOMER .082*.004
QUALITY 18 – 34 GENY
17 – GENZ .148*.000
35 – 50 GENX -.049 .058
51 + BOOMER .019 .544
ADVERTISEMENT 18 – 34 GENY
17 – GENZ -.189*.004
35 – 50 GENX -.014 .801
51 + BOOMER .006 .926
VARIETY 18 – 34 GENY
17 – GENZ -.128*.007
35 – 50 GENX .043 .277
51 + BOOMER .146*.002
SERVICE 18 – 34 GENY
17 – GENZ .125*.003
35 – 50 GENX .032 .360
51 + BOOMER .056 .193
Continued
Biggest mean difference is within the trend option.
Trend is described as “being perceived as popular or
being identified “cool” by social media”. Members of
Gen Y are very active users of social media. Mean score
of trend for Gen Y is significantly higher when compared
with other generations. It seems that buying decisions of
Gen Y generation is more affected by their friends in the
virtual world and opinions in social media.
The attitude towards prestige (A good reputation and
widespread respect) is identified as similar between Gen
Y, Gen X and Boomers. Brand (a well known and widely
recognized name) is more important for the members of
Gen Y and Gen X compared with Boomers. Fit (Proper
size and shape of the product) is more important to Gen
Z and Gen X and least important for Boomers. Quality
(General excellence of standard) is most important for
Gen X and least important for Gen Z. Advertisement (A
notice of announcement promoting a product or service)
is more important for the members of Gen Z compared
with any other generation cohorts. Variety (Differentiated
categories of the product) is least important for Boomers
and most important for members of Gen Z. Although
service (Adequacy, kindness and quality of the staff)
has the highest mean score for Gen Y, mean differences
between Gen X and Boomers are not significant.
First Hypothesis (The importance of the factors
affecting apparel-buying behavior is different for
the members of Generation Y compared with other
generations) is accepted for “Trend”, “Loyalty”,
“Prestige”, “Brand”, “Fit”, “Quality”, “Advertisement”,
“Variety”, “Service and denied for “Price”,
“Recommendation”, “Ambiance”, “Availability”.
Second hypothesis is about brand loyalty (A mental or
psychological state of faithfulness or devotion to a brand).
Brand loyalties of Gen Z and Gen Y are similar. Although
members of Gen Y evaluate brand loyalty as important,
mean scores of Gen X and Boomers are significantly
greater. So second hypothesis is accepted.
Last goal of the study is to identify the patterns
of generation cohorts on buying decisions.
Multidimensional scale analysis used to find out the
groupings (clumps). These groupings will are also
called as perceptual maps. With the interpretation of the
perceptual maps organizations would be better able to
understand:
● How theattributesareinterrelated intheminds
of the consumer
● How the brandloyaltyisinterrelated with these
attributes
● Whetherthe perceptual mapsaredifferentfor
each generation cohort.
Stress value identifies whether the solution is a good
or bad fit. A small stress value indicates a good fitting
solution, whereas a high value indicates a bad fit. Kruskal
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping
Preferences and Perceptual Maps Associated With Brand Loyalty
48
provided some guidelines for the interpretation of the
stress value with respect to the goodness of fit of the
solution (Wickelmaier, 2003).
Table 7
Guideline for Assessing Fit Using Stress
Stress Goodness of t
> .20 Poor
.10 < .20 Fair
.05 < .10 Good
.025 < .05 Excellent
.00 < .025 Perfect
In this study, the Kruskal stress value calculated for
each generation cohort.
Stress = .11409,
RSQ = .93738.
Stress value for GEN Z is about 0,114 and indicates
fair level fit. RSQ value is computed as 0.93738 and it
means 94% of variance in the model is explained by the
two dimensions.
Table 8
Stimulus Coordinates for GEN Z
Dimension
Stimulus Stimulus 1 2
Number Name
1 PRICE .4478 .1216
2 TREND -.2706 -1.2717
3 LOYALTY -.2503 2.0871
4 PRESTIGE -.5741 .0354
5 BRAND -1.0184 -.6040
6 FIT 1.9249 -.0620
7 QUALITY 1.1510 .0870
8 RECOMMEN -1.9780 .2033
9 ADVERTIS -2.2145 -.2683
10 AMBIANCE -.3380 -.0926
11 AVAILABILITY .6528 .3175
12 VARIETY 1.4407 -.4160
13 SERVICE 1.0268 -.1373
Table 9
Optimally Scaled Data (Disparities) for Subject GEN Z
1 2 3 4 5 6 7 8 9 10 11 12
1.000
21.414 .000
32.075 3.095 .000
41.414 1.414 2.060 .000
51.596 1.135 2.746 .733 .000
61.135 2.487 3.095 2.487 3.095 .000
71.135 2.156 2.487 1.414 2.060 .626 .000
82.156 2.487 2.746 1.596 1.414 3.912 3.095 .000
92.746 2.156 3.095 1.478 1.414 4.145 3.430 .733 .000
10 1.414 1.414 2.156 .733 .733 2.060 1.414 1.414 1.414 .000
11 1.414 2.060 2.156 1.478 2.060 1.135 .733 2.487 2.746 1.072 .000
12 1.135 2.060 3.095 2.075 2.466 .626 .626 3.430 3.658 1.414 .733 .000
13 1.135 1.596 2.487 1.414 2.060 .733 .256 3.095 3.244 1.135 .733 .626
While stimulus coordinates define the location of
every attribute on perceptual mapping, optimally scaled
data (disparities) table clarifies whether the attributes are
distant or close to each other. Smallest values represent
the closest attributes. Derived stimulus configuration
graph clarifies the groupings and the perceptual map.
Maybe the most interesting aspect related to the
perceptual map of Gen Z, brand trend and loyalty are
the most distant attributes. Quality and service are the
closest attributes. From the perspective of Gen Z Brand
Loyalty is not grouped with any other kind of attributes.
Butquality(general excellence of standard) is grouped
49 Copyright © Canadian Academy of Oriental and Occidental Culture
Güven Ordun (2015).
Canadian Social Science, 11
(4), 40-55
Figure 1
Derived Stimulus Conguration for GEN Z
with service (adequacy, kindness and quality of the
staff).
Stress = .08401,
RSQ = .98402.
Stress value for GEN Y is about 0,084 and indicates
good level fit. RSQ value is computed as 0.98402 and it
means 98% of variance in the model is explained by the
two dimensions.
Compared with the other generations it seems
thatperceptualmapping of theMillenialsisunique.
Advertisement and Recommendation are the most distant
attributes. These two attributes have the lowest scores for
each of the generations.
Attributes Fit and Quality are close to each other. As
these attributes have the highest mean scores for every
generation cohort. Also for Gen Y, Quality is grouped
with Service and Variety. Service is directly related to the
capabilities, characteristics and behaviors of the staff. On
theotherhand variety isrelatedwiththe quantity of the
products or the categories. So the evaluation for overall
Quality is grouped with the perceptions of Service Quality
and Product Quantity. Another attribute grouped with
Variety and Service is the attribute Fit.
Attribute Trend has the highest mean score for
Millennials. Trend is specified being referred as “cool” by
their friends and social media. Prestige is defined as good
reputation and widespread respect. Trend is grouped with
Prestige. A widespread respect might be associated with
being referred as “cool” of social media.
Table 10
Stimulus Coordinates for GEN Y
Stimulus number Stimulus name
Dimension
1 2
1 PRICE .3536 .0575
2 TREND .3505 -.0055
3 LOYALTY .6338 -.7773
4 PRESTIGE .4070 -.1452
5 BRAND .2122 .1469
6 FIT 1.2421 .3183
7 QUALITY .9029 .4624
8 RECOMMEN -2.4069 -1.5403
9 ADVERTIS -3.2459 -.5933
10 AMBIANCE -.3715 .8026
11 AVAILABILITY .2855 .4450
12 VARIETY .7325 .3698
13 SERVICE .9042 .4592
Brand Loyalty seems to be a distant to most of the
remaining attributes but the closest attribute to Brand
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping
Preferences and Perceptual Maps Associated With Brand Loyalty
50
Table 11
Optimally Scaled Data (Disparities) for Subject GEN Y
1 2 3 4 5 6 7 8 9 10 11 12
1.000
2.597 .000
31.179 1.179 .000
4.741 .597 .597 .000
5.690 .597 .741 .444 .000
6.597 1.086 1.179 .741 1.086 .000
7.597 .690 1.179 .690 .690 .263 .000
83.148 3.148 3.148 3.148 3.148 4.095 3.873 .000
93.668 3.668 3.873 3.668 3.536 4.580 4.281 1.179 .000
10 1.179 1.179 1.873 1.179 .690 1.685 1.179 3.148 3.148 .000
11 .597 .741 1.179 .690 .597 .597 .597 3.345 3.668 .597 .000
12 .597 .597 1.086 .597 .690 .444 .263 3.668 4.093 1.086 .444 .000
13 .597 .741 1.179 .690 .741 .263 .263 3.873 4.281 1.179 .597 .263
Figure 2
Derived Stimulus Conguration for GEN Y
Loyalty is Prestige. It seems Brands satisfy the esteem
needs of the Millennials deserve Loyalty, at least in a
mental or psychological way.
Stress = .09765,
RSQ = .96158.
Stress value for GEN X is about 0.097 and indicates
good level fit. RSQ value is computed as 0.96158 and it
means 96% of variance in the model is explained by the
two dimensions.
Like Gen Y Advertisement and Recommendation are
the most distant and ungrouped attributes. But unlike Gen
Y Trend is also an ungrouped attribute. Quality is grouped
with Fit, Service and Variety.
Associations between Quality, Fit, Service and Variety
are similar to Gen Y. Quality is defined as the degree of
excellence and for both generation cohorts the degree
Table 12
Stimulus Coordinates for GEN X
Stimulus number Stimulus name Dimension
1 2
1 PRICE .8634 -.6636
2 TREND -.7617 1.3299
3 LOYALTY .4502 -.8085
4 PRESTIGE .0937 .7817
5 BRAND .0993 .7893
6 FIT 1.5811 -.1908
7 QUALITY 1.4980 -.0052
8 RECOMMEN -2.1211 -1.1311
9 ADVERTIS -2.7370 -.1556
10 AMBIANCE -.8335 .0966
11 AVAILABILITY .1758 -.1439
12 VARIETY .6340 .0419
13 SERVICE 1.0577 .0592
51 Copyright © Canadian Academy of Oriental and Occidental Culture
Güven Ordun (2015).
Canadian Social Science, 11
(4), 40-55
Table 13
Optimally Scaled Data (Disparities) for Subject GEN X
1 2 3 4 5 6 7 8 9 10 11 12
1.000
22.399 .000
31.585 2.399 .000
41.710 1.114 1.661 .000
51.710 .961 1.623 .697 .000
6.961 2.862 1.116 1.661 1.710 .000
7.961 2.608 1.116 1.623 1.585 .203 .000
82.997 2.862 2.608 2.862 2.936 3.810 3.790 .000
93.636 2.452 3.253 2.997 2.997 4.318 4.238 1.116 .000
10 1.859 1.190 1.661 1.116 .961 2.452 2.399 1.710 1.585 .000
11 1.190 1.825 1.116 1.116 .961 1.190 1.116 2.500 2.862 .961 .000
12 .961 1.825 .888 1.116 1.116 .697 .697 2.997 3.386 1.116 .697 .000
13 1.116 2.399 1.116 1.116 1.114 .580 .435 3.386 3.810 1.585 .888 .435
Figure 3
Derived Stimulus Conguration for GEN X
of excellence is associated with the compatibility of the
producttothebody,qualityoftheserviceand quantityof
the products.
In the perceptual map of Gen Y Prestige is grouped
with Trend but for Gen X Prestige is grouped with Brand.
Prestige is related to reputation and respect. Reputation
and respect are associated with being labeled as “cool” for
Gen Y and being widely recognized for Gen X. “Being
recognized” sounds to be more traditional or habitual and
“being cool” sounds more unusual, unconventional or
unique.
Attitudes are composed of three components;
cognitive, affective and behavioral (Fabrigar et al.,
2005).Cognitivecomponent is related tothequantity
andqualityof the information. Ontheotherhand
affective component associated with the amount of
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping
Preferences and Perceptual Maps Associated With Brand Loyalty
52
likelihood towards the subjects. Behavioral components
are defined by past experiences with the subject.
Ingeneralquality is a combinationofcognitive
and affective attitudes. Perception of fit and service is
directly affected by past experiences. Brand defines
the accessibility of a name. It is mainly related to the
cognitive component of the attitude. Prestige can also be
defined as a combination of “what we believe” and “how
we feel towards the brand”. So different components
of the attitude seem to be correlating while we make
purchasing decisions.
Stress = .12028,
RSQ = .94480.
Stress value for BOOMERS is about 0.120 and
indicates fair level fit. RSQ value is computed as 0.94480
and it means 94% of variance in the model is explained by
the two dimensions.
Like for the members of Gen Y and Gen X
Advertisement and Recommendation are the most
distant and ungrouped attributes. From the perspectives
of Boomers Trend attribute seems to be similar to the
members of Gen X. Unlike Gen Y Trend is not grouped
with any other attributes.
Table 14
Stimulus Coordinates for Boomers
Stimulus number Stimulus name
Dimension
1 2
1 PRICE .4062 .5004
2 TREND -.7612 -1.5992
3 LOYALTY .7775 -.0570
4 PRESTIGE .2121 -.6158
5 BRAND -.5263 -.4321
6 FIT 1.5322 .2556
7 QUALITY 1.5344 .2396
8 RECOMMEN -1.8827 1.4086
9 ADVERTIS -2.7700 .2980
10 AMBIANCE -.7294 -.1634
11 AVAILABILITY .2652 .3743
12 VARIETY .8125 .1302
13 SERVICE 1.1295 -.3390
Table 15
Optimally Scaled Data (Disparities) for Subject Boomers
123456 7 8 9 10 11 12
1.000
22.261 .000
3.983 2.307 .000
41.022 .983 .983 .000
51.330 1.022 1.261 .941 .000
6.941 2.997 1.022 1.330 2.170 .000
7.941 2.997 1.022 1.261 2.167 .016 .000
82.307 2.997 2.997 2.997 2.286 3.601 3.601 .000
93.183 2.997 3.524 2.997 2.261 4.302 4.305 1.687 .000
10 1.497 1.687 1.687 1.022 .941 2.261 2.261 2.261 1.687 .000
11 .941 2.261 1.261 .941 1.022 .941 .983 2.361 2.997 .941 .000
12 .941 2.361 1.330 .941 1.330 .731 .941 2.997 3.601 1.330 .651 .000
13 .941 2.307 .983 1.022 1.497 .651 .651 3.524 3.951 1.687 .941 .651
On the derived stimulus configuration graph Fit and
Quality attributes seem to be overlaps with each other. It
is the closest clump for any of the generation cohorts.
Closest attributes to Brand Loyalty are Prestige and
Service. Widespread respect to a brand and helpfulness of
the staff is grouped with mental state of Brand Loyalty.
CONCLUSION AND DISCUSSION
Like Heraclitus said “Change is the only constant in
life”. As heredity, learning and modeling is important for
the establishment and development of personality. As
we all live in a different era we all have different kind
53 Copyright © Canadian Academy of Oriental and Occidental Culture
Güven Ordun (2015).
Canadian Social Science, 11
(4), 40-55
Figure 4
Derived Stimulus Conguration for Boomers
of experiences. Wars, natural disasters, financial crises,
unemployment rates may affect the characteristics of the
whole nation. Due to technological innovations now the
impact of each incident exceeds the cultural borders of
the nation. We might be the first generation watched a
(Gulf) War lives on TV. We do not have to visit each store
in order to make price comparisons. And we do not have
to write a letter and expect for an answer for a couple of
weeks. The pioneering technological innovation during
the times of Baby Boomers was TV. Personal Computers
changed the world during the times of Generation X. Hi-
fi and Walkman was popular before Millenials. Now
Members of Generation Y have all the information they
need in their cellphones. It might be emphasized that
generations have been transformed from “Hi-Fi” nation to
“Wi-Fi” nation.
The main scope of the study is to understand the
decisions patterns of millennials and find out the basic
similarities and differences between other generation
cohorts.ANOVAtechniqueisusedtounderstandwhether
the mean differences of the attributes between generation
cohorts are significantly different.
Main attributes used in the study are labeled as Price
(fairness of payment), Trend (popular or identified as
“cool” by social media), Loyalty (psychological or mental
attachment to a brand), Prestige (respect and reputation),
Brand (well-known or recognized name), Fit (suitability
of the product), Quality (excellence of standard,
fulfillment of expectations), Recommendation (suggested
by the others), Advertisement (news and commercials of
the brand), Ambiance (atmosphere and organization of
thestore),Availability(quantityandscope—coverage
—of the stores),Variety(Quantitybycolors,shapes and
categories) and Service (knowledge, expertise, enthusiasm
of the staff).
Mean scores of Price, Recommendation, Ambiance
and Availability are not significantly different for any of
the generational cohorts. Among all attributes Trend is
the most differentiated attribute for Millennials. Their
buying decisions are more affected by social media than
any other generations. They may trust the ideas of their
virtual friends more than their real friends.
Multidimensional Scale Analysis is used to find out the
perceptual maps of every generational cohort. Perceptual
maps help us to identify which attributes are grouped
(clumped) with each other. Quality is generally grouped
with Fit, Service and Variety. For the Millennials Prestige
is also grouped with Trend.
Millennials are the second biggest population in the
history of the world. This is an opportunity as well as a
challenge. They are college or undergraduate students for
now but in several years they will be dominating the work
life. Current managers are skeptical, uncomfortable, and
even anxious about their entrance to the work life. But
from another point of view they already began to dominate
the market. Not only because of their buying power,
but they also directly influence the buying decisions of
their parents. So either from the managerial or retailer
Copyright © Canadian Academy of Oriental and Occidental Culture
Millennial (Gen Y) Consumer Behavior, Their Shopping
Preferences and Perceptual Maps Associated With Brand Loyalty
54
perspective, we have to understand their perceptions,
attitudes, decisions patterns and behavior. Depending on
the nature of their characteristics they desperately seeking
connection, but a trustworthy one. So instead of trying to
be one of them if you understand them, they will let you
connect their social network. And depending on the results
of study if you can have the chance to connect their social
network as a trusted source you may also have the chance
to guide their behavior.
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... A person born between 1981 and 1995 is considered as Gen Y in this research following the settings in similar recent researches (Aksoy et al., 2013;Zhang, Carpenter, & Brosdahl, 2011). Currently, they are deemed to be the prime online consumer group (Ordun, 2015) and Bangladesh has a much younger population (CIA, 2014), therefore studying their purchase behaviour is important. ...
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