Generation Y is having a large influence on global politics, economics, and culture through protests and social media use. They are also impacting marketing strategies. Generation Y cares about status, experiences, and deals but is diverse globally. Understanding their values, behaviors, and cultural differences requires hybrid research methods to gain useful insights for products, brands, and human resources strategies.

1. 6 MRA’s Alert! Magazine – January 2012

2. Generation Y
Meets Market Research
By Michael Stanat
Last year, researchers witnessed dramatic
changes on the world stage. They
saw riots against longtime politicians
televised from Arab streets, nationwide
protests by Occupy Wall Street and
riots in the streets of London about
tuition hikes. Behind those headlines
was a common thread: young people
known as Generation Y playing a larger,
more influential role in world economic,
political and cultural transformations.
Photo credit: David Shankbone Occupy Wall Street – photos from the camp in Zuccotti Park and
the march against police brutality, walking to One Police Plaza, headquarters of the NYPD.
MRA’s Alert! Magazine – January 2012 7

3. For clients of research, the young people that young people tended to be driven • Engaging customer experience
in this generation can heavily influence by status and affiliation, compared to Popular brands like IKEA and
the success and strength of brands. In Boomers who were motivated more Apple capitalize on a marketing mix
a matter of seconds, young people can by power and optimism. The study emphasizing affordable products, high
share opinions globally about the brands compared findings from decades past quality and unparalleled customer
they like and especially the ones they and found that the differences excluded experience. At the end of 2010, Apple
dislike. And, as societies become older lifecycle variables. announced that it nearly quadrupled its
in Europe, Japan and the United States, In a 2010 survey by Martin Lindstrom, year-on-year revenue in China largely
companies are increasingly eyeing author of “Buyology” and “Brandwashed,” because of the iPhone and iPad. A key
how to market to lucrative segments and SIS International Research, young part of that success was from China’s
with disposable income and employ people were significantly more influenced young people and their exploding
Generation Y in their organizations. by status, peer dynamics, customer demand for foreign branded products
experience and word of mouth. which communicate status and are often
Who is Generation Y? This drive for affiliation and affirmation perceived to be of higher quality.
“Generation Y,” the group of young people coincides with the generation’s high Interestingly, some of the most
born after 1980 and through the early usage of social media. Young people successful Generation Y entrepreneurs
1990s, is generally differentiated from spend time publicly accepting “friends,” cultivate these values in their companies.
past generations by their individualism, “de-friending,” “liking” status updates Facebook’s corporate culture exemplifies
consumerism and technology prowess. and constant in-group networking. Mark this emphasis on a competitively priced
Many news articles write about a product – in this case
generation of entitled, a free product – with
praise-craving
individuals whose
ultimate pursuit is
“ Generation Y,’ the group of young
‘ a focus on quality and
experience.
personal fulfillment. The
reality is quite different.
people born after 1980 and through the Because of new
economic realities,
Defined by seminal
events such as the
early 1990s, is generally differentiated Gen Y is on the hunt
for high quality deals –
Recession, Post 9-11
outlook, and global
from past generations by their same quality products
at discounted rates.
economic and political individualism, consumerism and They do online price
comparisons, online
technology prowess. Many news articles
transformation, many are shopping and look
struggling to understand for their next deal
write about a generation of entitled,
just who this generation on popular sites like
is. Groupon, Facebook
praise-craving individuals whose
Despite such a diverse Deals, Living Social
generation across seven and Yelp. They receive
continents, interesting
commonalities exist. ultimate pursuit is personal fulfillment. the same quality
entertainment at
Young people around
the world are less united The reality is quite different.” appealing prices on sites
like Hulu, Netflix and
by a common goal than iTunes. The concept of
they are united in fear of lost prosperity Zuckerberg, arguably Generation Y’s the “hunt” and the experience for some
and factors “holding them back.” In leading business icon, was illustrated in tends to be more important than the
Emerging Markets, for example, youth are the movie “The Social Network” as driven marginal savings. FourSquare.com has
concerned about unemployment, inflation by the desire to belong during his studies even integrated this concept of the hunt
and competition for jobs to help them rise at Harvard. The success of Facebook into its customer experience as users
in social class. In the United States, Japan is arguably so profound because it “check in” to places and “unlock” badges
and Europe, young people are concerned first capitalized on the deeply rooted to be showcased on their profile pages.
about debt, unemployment and tuition. underlying affiliation desires of college With these deals, they can influence
And in the Middle East, youth are fearful students to join the network. opinion internet-wide on products
of repressive systems having an impact Having endured the recession, tech- through internet memes, witty comments,
on their prosperity. Frustrations towards savvy young people have adopted ways to viral videos and reviews.
structures that are perceived to limit their reconcile unfavorable economic pressures Because of their innovative spirit
success are commonly manifested in the with their motivations. and digital technological skill set,
form of protests largely online and in the Today’s Gen Y consumer considers the Generation Y has drawn the attention of
streets. following factors together: HR executives and marketing managers
Globally, Generation Y shows • Competitive cost due to economic alike. The HR opportunity they see is
interesting similarities across borders. realities not only in terms of attracting skilled
One recent survey by Kenexa conducted • High quality or Strong Brand employees, but also Gen Y’s potential to
in 28 of the largest economies showed
8 MRA’s Alert! Magazine – January 2012

4. innovate new digital products. For many and at customer service by telephone, societies in Latin America and Middle
large companies, developing a robust new touch-points in mobile, kiosk, tablets East raise new questions for researchers
recruiting program, succession planning, and apps all make buying behavior much on how societies with more young people
outreach programs, training program and more diverse. That Generation Y will be a impacts companies and societies.
conflict-resolution procedures are top leading adopter of new technologies such
HR initiatives. Companies like Standard as model raises the need to understand Researching Generation Y
Charter in Singapore have aimed to Generation Y. While young people congregate in
attract Generation Y by embracing digital Despite a global economy, Generation Y large numbers on social networks, a
habits, e.g. providing iPads to staff and culturally differs from country to country. comprehensive picture is often needed to
setting aside dedicated office space as For example, Chinese web-enabled youth account for slight differences in segments
“hang out space.” access the internet almost twice as much and for the self-censorship that can occur
However, this generation is far from as their USA and European counterparts. in certain mediums. In Generational
homogenous. Lady Gaga commands much less of a fan- Research, hybrid methodologies can help
Gen Y’s online habits are becoming following in China and Korea than do local contextualize cultural, behavioral and
more diverse. A recent study by Gartner music stars. Gender dynamics can heavily attitudinal insight.
China’s New Environment
challenged myths about young peoples’ impact purchasing decisions in some Part of my research among China’s
social media obsession. Nearly one in four countries and have little impact in other young people concerned the purchasing
American Gen Y respondents considered countries. Subcultures can be lucrative habits of young people in a country
themselves bored and “burnt out” by target segments for companies, but can known for price leadership of its goods.
social media, while a slightly larger evolve rapidly. Online surveys and background research
percentage mention higher usage than Societal representation of Generation on the topic were less common then. A
before. Y also differs dramatically. In North basket of methodologies were needed,
As the digital revolution continues, America, Europe, Japan and China, young such as many in-depth interviews,
new customer touch-points can mean adults are already beginning to support ethnography, homestays, focus groups,
more ways to reach out to new segments. their parents as they age, raising new offline surveys, quantitative research,
Whereas previous generations once questions about the future of Generation secondary sources and cultural research.
primarily engaged with brands at stores Y in ageing societies. In contrast, younger In the research, complex considerations
impacted purchasing beyond price
MRA’s Alert! Magazine – January 2012 9

5. China’s Young People
and quality concerns. also gaining more and more
Respondents in some cases
displayed conspicuous “ s the digital revolution continues,
A attention in intergenerational
research.
consumption, spending
beyond their comfort level. new customer touch-points can Summary
Generation Y is rising on
This was unexpected
as income, inflation mean more ways to reach out to the world stage impacting
politics, economics, societal
pressures and fears about
unemployment ranked very new segments. Whereas previous structures, the marketing
landscape and marketing
high in young peoples’ fears
for the future. generations once primarily research. Understanding
engaged with brands at stores and
Ethnography and cultural the nuances can mean the
research uncovered that difference between success
at customer service by telephone,
young people of moderate and failure for products and
means occasionally brands. Hybrid research
purchased expensive foreign
branded goods as a means
new touch-points in mobile, kiosk, programs and HR outreach
can provide granular
to communicate status in
a society that emphasizes
tablets and apps all make buying insight to make sense of
and to engage a diverse
hierarchy and relationship
networks. For some, this was
behavior much more diverse.” generation worldwide.
Michael Stanat is a Global
both ironic and intriguing, as Youth Research Specialist,
skate parks and bars, can provide
China is technically a communist country and a speaker on Generation Y issues. A
deep observational insight from peer
with Confucian values of thrift. The fellow member of Generation Y, he is the
researchers on-the-ground. As the
analysis provided more topics for further published author of “China’s Generation
need for affiliation is important for this
inquiry. Y: Understanding the Future Leaders of
generation, some researchers have
Co-creation, ethnography and cultural the World’s Next Superpower.” Stanat is a
employed word of mouth and buzz
research together can help to provide Global Emerging Markets Executive at SIS
tracking to understand how interpersonal
context and understand intergenerational International Research, and has previously
influence can impact purchasing.
differences. “Coolhunting,” in which worked at market research firms in China
In addition, the study of Semiotics,
peer researchers conduct ethnography and the Middle East.
Behavioral Psychology and Heuristics are
in respondents’ preferred venues like
10 MRA’s Alert! Magazine – January 2012