Comprehending Generation Y Consumer Behaviour

Consumer behaviour studies the processes involved when a person or group selects, buys, uses, or discards products, services, ideas, or experiences to satisfy needs and desires. 

In other words, it is influenced by a set of factors, among which the most outstanding are:

• Personal,
• Social,
• Cultural.

Learning about consumer behaviour can be the key to making marketing campaigns more assertive and focused on the needs of your audience.

That also translates into greater possibilities to retain customers and improve the acquisition of new customers.

In this age where new technologies are constantly being introduced and adopted, consumption patterns are changing faster than just a few years ago. 

Therefore, it is necessary to constantly analyse the factors influencing consumer behaviour to recognise how this affects the public’s relationship with the brand and its products or services, especially in the purchase decision process.

The Definition Of A ‘Consumer’

The consumer is a person who identifies a need or want, makes a purchase, and then has an experience with the product. 

The consumer is the centre of the marketing strategies and process. Thoroughly understanding consumers’ needs, motivations, and desires is the most important task for brand strategists. 

Knowing the consumer means knowing their emotions, feelings, relationship with brands and products, purchasing and use habits, and the cultural and psychological influences that set trends. 

Knowledge of consumer behaviour is one of the most important tasks in the marketing process.

Companies exist to satisfy the needs of their clients’ consumers; this is a reality of marketing. These needs can only be met if marketers deeply understand the people and organisations who would use the products and services they are trying to offer them. 

Companies must thoroughly understand how people compare products and decide between the different alternatives on the market and thus develop value propositions and differential elements to compete in an increasingly competitive and complex market.

Millennials or Generation Y

This generation stands out for its great consumption of content on the Internet, cares about the environment, uses social networks and buys online. 

70% of these online purchases are made from their mobiles. Some factors that drive them to do so are discounts, free shipping, fast transactions and easy returns.

Not only are they digital natives, but almost all of their daily communications are mediated by a screen. Regarding their behaviour on social networks, they prefer Facebook, YouTube and Instagram.

Everything that has to do with technology attracts them a lot; they also consider products related to health, food and sports.

They are also interested in experiences, leisure and travel. Millennials have seen how the previous generation, the baby boomers, have put a lot of effort into work at the cost of running out of time for themselves.

Within this group, we find differences by segment. From 16 to 23, their acquisition level is low, but they act as prescribers of products on social networks. 

The second sub-segment, from 22 to 28, makes purchase decisions. Finally, those between 29 and 35 years old usually already have children and begin to adopt the roles of generation X (from 35 to 50 years old).

Benefits of Understanding Consumer Behavior

Before going into the aspects influencing consumer behaviour, it is worth talking more specifically about how this knowledge will benefit your business.

• Contributes to customer engagement and satisfaction,
• Greater knowledge of the market in general,
• Better communication skills,
• Anticipation of new trends,
• Minimise losses,
• Maximise profits.

In short, understanding the consumer compartment will help you make the right decisions. Knowing it is as important as learning to interpret it to adjust your marketing and sales actions in that direction.

The Process Of Consumer Behaviour

This is how we see that consumer behaviour is a process that involves studying the different factors that intervene when people or groups choose, buy, use or discard products or ideas to satisfy their needs which will later affect the buying process. 

Consumer behaviour describes two different types of consuming entities: 

• The personal consumer and the organisational consumer.
• The personal consumer purchases goods and services for their use, for household use, or as a gift to a third party

Variables such as motivation, emotion, learning, information processing, culture and social patterns intervene.

Factors Influencing Consumer Behaviour

Here are some of the most influential ones that have been described by marketing and sales insiders:

Social factors

Social factors rule the interpersonal relationships in which the consumer is immersed.

What are the social groups with which this consumer lives? The preferences and tastes of these groups are influenced since the most common is to adopt common behaviours that help them fit in.

Keep in mind that the consumer is presented with products inserted in that context with the groups of people with whom he lives.

Therefore, social class, friendships and the professional or learning environment influence consumer behaviour.

Cultural factors

Although in Western countries, it is not usually considered the main factor influencing consumer behaviour, culture does play an important role.

Even before we form our personality, we are impacted by the culture of the place where we live, so part of our personality is moulded within that culture, including language, habits, norms and even religious beliefs.

For example, it is well known that in some European countries, people do not take a shower every day, while in the Caribbean countries of Latin America, bathing is a daily habit.

The weather and the seasons shape part of the culture of both places.

This cultural factor is well understood by companies that create hygiene products, which intentionally vary their products to remain effective despite cultural differences between regions.

Personal factors

These are individual factors specific to each consumer, although people who are part of the same group and share cultural elements will not always have the same behaviour.

Each person has their individuality and personality, which will influence their needs.

These personal factors are more complex and difficult to measure. However, we can evaluate data such as needs, age, desires, specific needs, aspirations, personal ambitions and more relevant information to create a buyer persona.

Psychological factors

Psychological factors are undoubtedly personal, but they are so relevant that they deserve to be differentiated.

Fears and anxieties put the consumer in a state of alert that invites him to find options to feel safe. The cybersecurity industry knows this very well.

After experiencing it the first time, it is normal that you want to experience it again since human beings are always looking for ways to satisfy our needs, many of which come from consumer goods.

Conclusion

Overall, Generation Y or Millennials are known to opt for a product they want before they ask for it (brands that know and anticipate the needs of their customers). Example: Amazon, the e-commerce portal, suggests products based on the purchase pattern.

Brands relate to consumers using different media (social media, commercial establishments, social networks, etc.), with social media being one of the fastest-growing. 

Hence, it is convenient to know consumers’ expectations of brands on social media. They generally want information on products and services, promotions, and answers to their questions. It is about supporting the consumer in his journey and granting benefits.