consumer behavior of generation x

A STUDY ON BRAND PREFERNCES & BUYING BEHAVIOR OF GEN X

Under Esteem GuidanceAsst. Prof. T.Suchitra Rani,

Siva Sivani Institute of Management

SUBMITTED BY:

M2 – 04, Ahmad Shakeeb

M2 - 14, G.S.Vijay Babu

M2 – 24, Manmath Sahu

M2 – 34, Nitesh Rao

M2 – 44. S. Fayeza

M2 – 54, Sidddhartha Roy Chaudhary

Siva Sivani Institute of Management,Kompally, Secunderabad

Siva Sivani Institute Of Management 1

CONTENTS

Introduction 3

Objective of Study 3

Literature Review 4

Definition Of Gen X 6

Characteristics of GEN X 7

Research Methodology 11

Data Analysis 12

Findings 24

Marketing Implication Of Study 25

Limitations of Study 25

Reference 25

Questionnaire 26 - 27


INTRODUCTION

Buying Behavior is the decision processes and acts of people involved in buying and

using products. This behavior is not same for all people. It differs according to different

attributes of people. If we see behavior of specially generations, according to their age,

we find a lot of difference between them because of the difference in the era, they had

different environment which changed their buying behavior.

GEN X consists of people who were born from 1965 to 1980. They were born in just

post- independence age, which made different attitude among themselves. So, as a

marketer there is a need to study is their any variations between buying behavior of Gen

X and the current generations. And what are the factors they prefer while making a

buying decision.

In this study an effort has been made to know the brand preferences and buying behavior

by taking two products, toothpaste and two – wheeler. Based on the findings, marketing

implications have been suggested.

Objective of Study

The objective of study conducted was as follows-

• To know the buying behavior of Gen X

• To know the brand preference of Gen X

• To know the involvement level of Gen X


LITERATURE REVIEW

The term "Generation X" worked its way into popular vernacular after the release of

Douglas Coupland's 1991 novel, Generation X: Tales for an Accelerated Culture, about

three twenty somethings who are underemployed, overeducated, and unpredictable. Other

nicknames have emerged, such as the more neutral "13ers" (which indicates the 13th

generation since the pilgrims landed at Plymouth Rock). However, most of the other

markers have negative overtones, such as "slackers," "latch-key generation," "MTV

generation," and "baby busters." Many members of this generation reject these labels for

they not only stigmatize and stereotype, but also reinforce the negative behavior they

describe.

In his research over brands over Gen X, ‘Has Gen X fallen through the cracks’ Vivian

Manning Schaffel mentions that, Generation X has always been problematic. Skeptical

and saddled with recessions, the members of this age group never really had a chance to

embrace shameless consumerism like Gen Y. The recession of the early 90s produced a

job market so dismal that college grads were forced to take menial jobs to support

themselves and pay back heavy student loan debt. Five years ago, it seemed that

Generation X (which we will define as born between 1965 and 1980) had finally caught a

break. The dot-com boon and thriving economy of the late 90s created a prosperous

climate, finally giving Gen X'ers a reason to feel that they might be able to achieve or

surpass the financial status of their parents.

Social ills like the rise in teen suicide, widespread homelessness, proliferating toxic

waste, violent crime, the AIDS epidemic, and a "down-sizing" workforce, coupled with

fundamental changes in social structures like the family, caused by rising divorce rates

and working parents, have been the realities of the world as Generation X has come of

age. Like younger generations, many Xers resent their parental generation—the baby

boomers—for leaving them to repair or endure a society on the brink of collapse.


Considering the problems Xers face, it is perhaps no wonder that one of their favorite T-

shirt slogans is "NO FEAR," and it is also representative of the contradictions of their

culture that NO FEAR is the corporate brand name of a line of sports clothes.

Lack of fear, however, is not enough to manage America's social problems, and many

baby boomers voice concern that most members of Generation X evince distaste for

politics and public affairs. The trust of all Americans in their government has reached

increasingly low levels in the 1990s, as members of Generation X have come of age

politically.

Because they view politics as a hostile and corrupt environment, Xers have tended to be

disgusted by political machinations, and thus often disengaged. Political apathy among

young people is not a new phenomenon; personal challenges such as education, careers,

and relationships often consume their time and energy, leaving little left over for political

affairs. Furthermore, political scientists report that, historically, levels of public

participation increase with age. However, Xers have never experienced political

innocence and have lived within a negative climate of politics their entire lives. This

climate has caused many to turn their backs on political involvement, in turn causing a

potentially devastating problem in terms of Xers' future civic and political responsibility.

Branding and the Gen X Factor

Dr. Laura Portolese Dias has done a project over "Generational Buying Behaviors"

and she has tried to explore and justify the buying behavior of same generation people.

She has clearly stated that, ‘Why are people from the same generation so similar in their

shopping motivations and habits? Gen X'ers gifts will be more likely to come from a

discount store than an upscale retailer. On the other hand, the best age group to get a

present from this year is the Baby Boomer generation since, as Portolese Dias, a

Researcher says, "They have never been through hard times really and have always spent

their money freely."


"Individuals don't always buy because something is a great product. When

purchasing clothes, for example, there was a huge difference between generations.

Generations X and Y were similar in their motivations for buying clothing --

entertainment value, excitement and because they could while Matures and Baby

Boomers found shopping for clothing tedious and boring. The latter two groups find that

clothing was not designed to fit their changing bodies, the styles were not conducive to

their lifestyles and a myriad of other issues that they believed that retailers today have

been overlooking."

There is a fine line separating too many brands from too few. If companies are lazy with

the brand shears they end up with the marketing confusion and poor economies of brand

exemplified by General Motors and its overgrown brand architecture. In contrast, if firms

are too conservative with brand creation and acquisition, they end up with the risk-averse

culture and limited market penetration illustrated by Kodak.

The secret is to be somewhere in the middle. The fewer the brands, the better, but you

have to make sure there are enough to target all the valuable segments in the market. So it

is always interesting when a savvy company such as Hyatt decides to create a new brand.

The hotel operator recently launched a hotel chain named Andaz. Personally, I would

have followed in GE Life's footsteps and named the brand 'Tonight'. Alas, this time the

Indians have triumphed: the name means 'personal style' in Hindustani.

As part of her research, Dr. Portolese Dias compared Matures ('50s Rock & Roll,

September 11th); Older Baby Boomers (hippie movement, '50s Rock & Roll); Younger

Baby Boomers (increase in divorce rates, both parents working); Generation X (Dot Com

Boom and Bust, parents, divorce); and, Generation Y (Dot Com Boom and Bust, parents,

divorce).

Smitha Sambrani in her article, “Cross Cultural Marketing Challenge”, published in

Indian Journal of Marketing, May, 2006, collected information how marketers are

influenced by cross cultures while making strategy for a particular product. She has taken


some MNC’s operating in India and how they are positioning their brands in Indian

Market. Why some of them failed to perform?

GENERATION X DEFINITION:

Generation X can technically be defined as the generation followed by the Baby

Boomers. They are also called Baby Busters. Xers were born between 1965 and 1980,

1961 and 1981, 1964 and 1979, 1963 and 1979, 1965 and 1975 or since the mid-1960s,

depending on which source you use. For practical purposes we will say that Generation X

was born between 1965 and 1980, now ranging in age from 17-32 and usually judged by

characteristics assigned to them by the media.

Throughout the twentieth century, American historians and social commentators have

placed labels on various generations in an effort to capture their characteristic spirit.

Generation X—roughly defined as the more than 79 million people born between 1961

and 1981—has been characterized by the media as lazy, laconic, and unfocused, but in

the eyes of many, the pejorative label represents propaganda rather than reality. For those

outside this generation, the X stands for some unknown variable, implying young adults

searching aimlessly for an identity. Many members of Generation X think otherwise,


however, and they fill in the blank with such descriptors as diverse, individualistic,

determined, independent, and ambitious.

CHARACTERISTICS OF GENERATION X

1. Importance of relationships

Perhaps it is due to their lives which are highly structured by technology

and the hectic lifestyle of their parents which reduce quality time with the

family. Thus they have to look elsewhere for meaningful, fulfilling

relationships.

2. Starved for love

Since they are constantly in contact with technological devices such as

computers and TV, they crave for human affection . The desire to be loved

adds to their longing to have a certain sense of identity amidst a radically

changing society.

3. Individualism

Even as early as the 1930s, "individualism" had become a popular phrase. A

sense of unique identity is extremely important to them and they strive to

be different in as many ways as possible.

4. Diverse

With their liberal attitudes and eagerness to be loved, racial differences

are of little importance to them. They are united despite coming from

backgrounds, by a common outlook towards life.

5. Self-sufficient

Due to competitiveness of this era, the youths ultimately realize the

significance of independence and rely less on others to survive. Lack of

trust could also be a factor here. After the entire working world is called a

'rat-race' today implying a selfish pursuit of material gains.


6. Down with institutions

Since belonging to an institution means commitment to the institutions'

rules and regulations and thus serve as a threat to individualism which they

uphold. Weariness of institutions comes from belonging to too many

throughout their lives such as schools and the government.

7. Commitment-wary

In line with their skepticism of institutions, they are repelled by

commitments. Individualism and a fast-paced life hinders any form of

commitment as it would only mean an extension of their working/school life.

8. Work and social life

Their working life are their grounds for interaction and socializing. When

they return home therefore, human interaction is not necessary.

9. Angst

Society often views Gen Xers rather disapprovingly. They are often labeled

slackers and thus lead to the accumulation of pain inside.

10. Change is welcome

The rapidly changing technology has forced the Gen Xers to be more adaptive

to the many simultaneous changes around them.

11. Risk-takers

Since they view themselves as unique vibrant modern youths and take pride in

it, they are not afraid to embrace a challenge. Risks are also taken in

order to gain excitement to escape from the monotony of their busy lives.

12. Truth and reason-pragmatism rules?

The Gen X often rejects or resists traditional or conventional ideals of truth

and racism. Since they are in a financial-based society, they often rely on

pragmatism in order to overcome the risks.

13. Spiritual seekers

Ironically, even as they give little importance to truth and reason, they

are looking for a form of intern fulfillment! They do explore their inner

side where love is concerned.


14. No boundaries

Their sense of liberalism together with their own brand of individualism

invoke in Gen X a form of iron determination. Their eagerness to take a

chance explains why they perceive the world as without boundaries,

preferring instead to have no limits as to what they can achieve.

15. Rules from the right authority

Living in a fast-paced society could easily result in a chaotic mindset.

Thus a certain form of order is needed. A suitable authority might be able

to guide their society.

16. They are stressed out and organized to death

They are often the victims of their own modern lifestyles. Competition

inevitably leads to stress.

17. Embrace technology

Technology is the window to the outside world, the borderless, racially

mixed world. Computers, television and hand phones are such technological

devices which have become part of the Gen X's lives.

18. Unique style of communicating and learning

Especially after the advent of the internet, high-tech communication seems

to be very much preferred. This is essential with the deluge of information

that is available to them.

19. Media savvy

The vast amount of informative literature that is available in this

borderless world automatically makes the Gen-Xers even wiser in assessing

information, not taking most things at face value.

20. The love stories

Indeed stories serve as a good form of escapism from their hectic lives. Not

interested in 'weighty' topics, the descriptive would naturally appeal to them.

21. Incredibly ambitious

They are rather idealized in thinking and since there are no boundaries

which can hinder their perspectives, they are ultimately ambitious.


22. Part of a Global Youth Culture

This is in line with their liberal attitudes and racial diversity which

leads to the establishment of a Global Youth Culture that is very widespread

as trends travel from nation to nation in a borderless world.

RESEARCH METHODOLOGY

To study the buying behavior and brand preference of Gen X, two products have been

taken, one is toothpaste and another one is two – wheeler bike.

Sample – Sample Size have been taken 50. It was a Convenience Sampling. Sample has

been taken from Siva Siva Sivani Institute of Management, and the local market, Prajay

Apartments.

Method of Data Collection - Data was collected by primary method. Two different

Close Ended Questionnaire which consist of 8 questions each. After filling the

questionnaire response have been analyzed and interpreted on graphical representations.

Statistical Tools Used- To interpret the finings, Bar Graph, Pie- Chart have been used.


DATA ANALYSIS

BUYING BEHAVIOR AND BRAND PREFERENCE

To study the buying behavior and brand preference of Gen X, we have taken two

products, one is Toothpaste and another one is Two- Wheeler.

So, Lets see first buying behavior while making a purchase decision making over

toothpaste.

Q.1 Which Brand you use personally at home?

Response No Of Respondents

Percentage of Respondents

Close - Up 15 30

Pepsodent 9 18


Colgate 24 48

Any Other 2 4

class size

30%

18%

48%

4%Close - Up

Pepsodent

Colgate

Any Other

By this analysis we can see that the most preferred brand is Colgate, as 48% of people use it personally and after it Close- up has highest share as 30%

Q.2 Which factor affects you for buying particular toothpaste?

Brand Loyalty 1122

Advertisement 714

Quality 2244

Price 48

Availability 612


class size

22%

14%

44%

8%12% Brand Loyalty

Advertisement

Quality

Price

Availability

By analysis of this data we can see most of people (44%) are affected by Quality fact of the toothpaste, and after it they consider loyalty as it is also a result of the quality and price has very low percentage (8%), which shows that people don’t think much about price while buying toothpaste.

Q.3 Can you switch to other brands if same quality and quantity available in low price?

Response No Of RespondentsPercentage of Respondents

Yes 15 30

No 35 70


class size

15, 30%

35, 70%

Yes

No

By interpretation of this data we can come to this conclusion, that people are not willing to switch over other brands also (70%), as we have already seen the brand loyalty fact of the generation, and very few people, 30% can consider for switching the brand if same is available for low price.

Q.4. While buying a toothpaste, do you prefer particular brand of a company name also or only by company name?

(a) I buy a particular brand name of a company, as Close- Up Calcium, Colgate salt.(b) I just see the name of company as, Close- Up, Pepsodent.

Response No of RespondentsPercentage of Respondents

Brand Name 12 24

Company Name 38 76


class size

24%

76%

Brand Name

Company Name

By interpreting the above data, we can see that 76% of people don’t see any particular brand of a company, as just see the company name, as Close Up, Colgate, very few go on variety, as Colgate Salt, or Close up Calcium.

Q.5 ‘Price is an important factor while buying toothpaste’.(a) Strongly Agree(b) Agree(c) Moderate(d) Disagree(e) Strongly Disagree

Response No Of RespondentPercentage of Respondents

Strongly Agree 00

Agree 1122

Moderate 1224

Disagree 2754

Strongly Disagree 00


class size

0% 22%

24%54%

0% Strongly Agree

Agree

Moderate

Disagree

Strongly Disagree

In this chart it is clearly depicted that a majority (54%) strongly disagree the price factor while buying the toothpaste. A few (22%) only consider the price factor while buying.

Q.6. ‘I use particular toothpaste, because my family member use it’.(a) Strongly Agree(b) Agree(c) Moderate(d) Disagree(e) Strongly Disagree

ResponseNo Of

RespondentsPercentage of Respondents

Strongly Agree 0 0

Agree 23 46

Moderate 7 14

Disagree 18 36

Strongly Disagree 2 4


class size

0%

46%

14%

36%

4%Strongly Agree

Agree

Moderate

Disagree

Strongly Disagree

By interpretation of this data, we can see that a majority (46%) is agreeing that they use particular toothpaste because other family member uses it. Again (36%) disagree with the statement that they use it because of other family member use it. So here we see mix response over here. It can be concluded that in case of buying toothpaste, Gen X people have their own choices.


After toothpaste, let us see the buying behavior while purchasing a two- wheeler.

Q.1. Which brand you prefer while buying?(a) Hero Honda (b) Bajaj(c) TVS(d) Yamaha(e) Any Other

Response

Brand No. of respondentsPercentage of Respondents

Hero Honda 2652%

Bajaj 1938%

TVS 2 4%

Yamaha 36%

%age.of respondents

52%38%

4% 6%hero honda 26

bajaj

tvs

yamaha


In this chart it is clearly shown that a majority 52% have interest in Hero Honda Bike, as the second preferred choice is Bajaj. This two are most liked brands by the customers.

Q. 2. While purchasing a bike, do you see company name only, or you see the model name also?(a) I see only the Company name, as Hero Honda, Bajaj(b) I see the model also, as Splendor, Discover.

Response No Of Respondents Percentage of Respondents

company name 31 62

model 19 38

62%

38%company name

model

By this chart we can interpret that a majority (62%) of people don’t consider much on model name they just believe in brand name while buying a bike.

Q. 3.Which factor you consider most while buying a bike?

1. Price2. Brand name3. Durability4. Speed5. Comfort


Factors No. of respondents Percentage of Respondents

price 20 40

brand name 11 22

durability 7 14

mileage 5 10

speed 4 8

comfort 2 4

look 1 2

no. of respondents

40%

22%

14%

10%8% 4% 2%

price

brand name

durability

mileage

speed

comfort

look

In this chart we can see that there is a mix up of response, as 40% people prefer price factor, first then they look for brand name, (22%) and we can see that very les (2%) go for look and speed (4%). And durability is also an important factor while making a purchase decision.

Q.4. While making a purchase decision that does you refers while buying a bike?(a) Friends(b) Mechanic(c) Family(d) Sales person


Response No of RespondentsPercentage of Respondents

Friends 2244

Mechanic 1734

Family 714

Sales person 48

By analyzing this chart we can see that most of people (44%) refer friends while looking for information and making a purchase decision and also some people (34%) refer mechanic for making a purchase decision, and all others prefer family & sales person.

Q.5. While buying a bike, which source you look for information?(a) Newspapers(b) TV Ads.(c) Auto Magazines(d) Internet


44%

34%

14%8%

friends

mechanic

family

sales person

Response No of ResponsePercentage of Response

Newspapers 2142

TV Ads. 1938

Auto Magazines 612

Internet 48

42%

38%

12%8% newspapers

tv ads.

auto magazines

internet

In this chart we see a majority of people (42%) look for newspapers for information over a bike, as another (38%) consider TV Ads for information over bikes. If we look at the Auto Magazines, we see a low response (12%). So, it can be interpreted that this X Generation, don’t have much interest in bikes and all, therefore they don’t go for very deep information, while buying.


FINDINGS

• By analysis of this all data, we can see that Toothpaste is a low- involvement

brand for the generation X.

• A majority of people (44%) see quality aspect of toothpaste and 22% are brand

loyal which is also result of quality factor of toothpaste.

• Gen X is brand loyal for toothpaste, as 70% people are not ready to change the

brand if same quality and quantity is available in competitive price.

• People don’t see much the special brand name of toothpaste, only 24% people see

the brand name (Colgate Salt, Close Up Calcium) of any toothpaste, they just see

the name, as Close Up, Colgate and buy it.

• When asked about decision making, as do you use particular toothpaste, because

other family members use it, we get a mix answer. As 46% agree that yes they use

it because other family member use it and 36% say that no, they have own choice,

so we get a mix response, in conclusion we can say that they have freedom to

make their own choices.

• In Bike Section we can see that price (40%) a factor while buying a bike,

followed by Brand name (22%) and durability (14%) for buying a bike.

• While looking for the information, we can see that they newspaper then followed

by TV Ads

• Friends (44%) are good source for them to influence their buying decisions as

followed by Mechanic (34%).

• A majority (62%) don’t consider much on the model name (Splendor, Discover)

of bike, as only (38%) consider for model name. so we can depict that Gen X

believe in the name of Company name and they are loyal to the company.


MARKETING IMPLICATION OF STUDY

By this study we can implicate the findings in following stages. As we saw that

toothpaste is a low- involvement product for Gen X, so to increase the sales,

companies should use these tools.

• Repeated Advertising

• Memorable brand name

• Point-of-purchase (POP) display in store

• Putting brand at end of shelf position in store

LIMITATIONS

Although all measures have been taken to keep the results authentic, but it has certain

limitations.

• This study is done on the basis of convenience sampling.

• This study is limited to quantitative data, as it close ended questions were only

asked, so much more factors could have influence on buying behavior

REFERENCES

• Generation buying behaviors, Dr. Laura Portolese Dias, Argosy University,

Seattle.

• Cross Cultural Marketing Challenge, Smitha Sambrani

• Has Gen X fallen through the cracks, Vivian Manning Schaffel


Questionnaire on Brand Preference &buying behavior of Gen X toothpasteName – Gender – Male / Female Occupation -

1. Which brand of tooth paste you use personally at home? (a) Close – up (b) Pepsodent(c)Colgate (d ) Any Other

2. Why do you buy particular toothpaste?(a) Brand Loyalty (b) Advertisement(c) Quality (d) Price (e) Availability

3. Can you switch to other brands if same quality and quantity available in low price?(a) Yes(b) No 4. What do you prefer?(a) Ordinary Paste (b) Gel(c) Powder (d) Stripe

5. While buying toothpaste, do you prefer brand of a company name?(a) I buy a particular brand of company, as Close up Calcium, Colgate Salt.(b) I just see the name of company as, Close up, Pepsodent, etc

6. ‘Price is an important factor while purchasing toothpaste’.(a) Strongly Agree (b) Agree(c) Moderate (d) Disagree(e) Strongly Disagree

7. Who purchases toothpaste at your home?(a) Myself(b) Wife(c) Other family members(d) Children

8. ‘I use particular toothpaste because other family members use it’.(a) Strongly Agree (b) Agree(c) Moderate (d) Disagree(e) Strongly Disagree

‘Thank you very much for your valuable time’.


Questionnaire on Brand Preference &buying behavior of Gen X on Two- WheelerName Age

1. Which company bike you like most?(a) Yamaha(b) Hero Honda(c) Bajaj(d) TVS(e) Others

2. While buying a bike do you prefer only company name or special model also?(a) I buy a particular model, Splendor, Pulsar.(b) I just see the company name, as Hero Honda, Bajaj

3. Rate the below factors (1 to 7) you consider while buying a bike.(a) Price [ ] (b) Speed [ ](c) Mileage [ ](d) Durability [ ](e) Look [ ](f) Brand Name [ ](g) Comfort [ ]

4. While buying a bike whom to do you take advice (rate from 1 to 4)(a) Friends [ ](b) Family [ ](c) Mechanic [ ](d) Sales Person [ ]

5. For getting information that do you prefer, (rate from 1 to 4)(a) Auto Magazines [ ](b) Newspaper [ ](c) Internet [ ](d) TV AD [ ]

6. Are you fascinated by the celebrities coming in the bike ads?(a) Yes(b) No

7. How do you state a bike for you?

(a) Ease and comfort(b) Necessity Product(c) Status Symbol

8. ‘Planning in advance necessary for buying a bike’.(a) Strongly Agree(b) Agree(c) Moderate(d) Disagree


(e) Strongly DisagreeThank you very much for your valuable time.


consumer behavior of generation x

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