Today’s topic: Generations
Why, you might ask?
Well, when it comes to segmentation and understanding target audience consumption and purchasing behavior, it is essential to understand both the characteristics of different generations and the factors that have shaped them.
This will ultimately make it easier for you to understand your audience better and meet their needs.
Note: There is ongoing debate about the exact birth years defining each generation. The years listed below are approximate but represent the most commonly accepted divisions.
Let’s dive in!
Interested in segmentation? Read more in my post about segmentation criteria here.
Generation X (1965-1979)
Generation X has experienced significant societal changes and has been instrumental in shaping the way our society functions today.
There was a notable shift in mentality from the Baby Boomer generation to Generation X. The focus moved from a collective society to individualism and intense competition.
With increased financial opportunities, this generation placed high importance on success and prestige, setting high expectations for future generations.
This period also saw a surge in college graduates, establishing an educational standard that influenced subsequent generations.
Consumer Behavior of Generation X
Generation X had to adapt to the rise of the internet and the opportunities it brought. However, their high level of education and drive for self-improvement enabled them to keep up with the changes.
Value for Money
They are comfortable shopping both online and in physical stores and tend to have materialistic tendencies. This generation values investing in products that provide status, potentially compensating for a modest upbringing by Baby Boomer parents.
“Value for money” is the key phrase for this generation. If a product aligns with their interests and hobbies, they are likely to make a purchase.
Generation Y (1980-1997)
You may know this generation better as the “Millennials.”
This is the generation that witnessed the turn of the millennium, the rise of the internet, and the pressure to chase success set by the previous generation.
Read more about the history of the internet in my post here.
Work-life balance became a major concern as Millennials entered the workforce, realizing that the world they were born into differed greatly from that of their parents.
Economic crises and inflation have meant that, despite being the most educated generation, Millennials often have fewer financial resources than their predecessors.
The “rat race” created by Generation X is no longer appealing to Millennials, who increasingly prioritize mental well-being.
Staying in the same job for 15+ years, as Generation X did, is not an attractive prospect for Millennials, who seek more flexibility and fulfillment in their careers.
Consumer Behavior of Generation Y
Millennials have witnessed the rise and fall of numerous social media platforms and played a pivotal role in shaping the ones we use today.
Their strong online presence makes them a key audience for traditional e-commerce since they primarily engage with brands through digital platforms.
Millennials value products that provide genuine benefits and tend to be highly critical when comparing retailers.
Customer journey mapping is key to understanding your customers’ buying journey — learn more here.
Focus on Global Ideals
This generation is also open to shopping from international retailers, having grown up in an increasingly globalized world.
With strong English skills and a global outlook, Millennials consider sustainability and social responsibility important factors in their purchasing decisions.
They are less materialistic than Generation X and are more likely to invest in products that resonate with their values and emotions.
Generation Z (1997-2012)
Generation Z has never known a world without the internet, which is evident in their lifestyle.
They have been immersed in digital innovations and social media from an early age, actively shaping the latest online trends.
For this generation, “logging off” is almost non-existent, and screen time is at an all-time high.
Many argue that Gen Z lives in a “perfection culture,” influenced by the success-driven mindset of Generation X, which was never fully challenged by Millennials and continues to thrive—especially on social media.
Gen Z is always engaged. There is always a new trend, a new subculture, or a new societal debate emerging on social media, driving the much-discussed “woke culture” that has brought many pressing issues to the forefront.
TikTok is among the favorite social media for this generation. Read more in my post here.
Consumer Behavior of Generation Z
For Generation Z, self-expression and belonging to chosen communities (both online and offline) are crucial.
This generation is expected to challenge conventional norms more than any before, reshaping workplace culture and societal structures.
Trust is Key
One major shift in consumer behavior has already emerged in e-commerce. For Gen Z, trust is everything.
With countless retailers competing for their attention, Gen Z does not fall for cheap marketing tricks. Instead, they rely on reviews and recommendations from influencers and content creators on social media to determine whether a product is worth buying.
This phenomenon, known as User-Generated Content (UGC), has significantly disrupted traditional marketing funnels and reshaped the way consumers interact with brands.
We are witnessing a new consumer behavior pattern that challenges traditional marketing strategies, making authenticity and social proof more important than ever.
Vogue Business has written an excellent article on this very phenomenon, which I recommend reading if you want to learn more about the consumer behavior of this new generation.
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