Running head: MILLENNIALS 1
Unit 5 IP
The Millennial generation, also known as Generation Y, consists of the offspring of the notorious Baby Boomers. The consumer group they make up is perhaps the most important consumer group for any business. This consumer group is estimated to spend in excess of $200 Billion in the year 2017. This generation has been stereotyped as self-centered, disrespectful, and lazy. However, the fact is they are the consumer group with the most education, and they are more racially and ethnically diverse than any generation we have ever seen. Combine this with their great knowledge and dependence on technology and you get a consumer group unlike any that have come before.
Millennials are classified as the consumer group born between the year 1976 and the year 1995, which means as of 2015 they are between the ages of 20 and 39, and currently make up over 25% of the U.S. population. While only around 21% of Millennials are married, they tend to reside in a household which includes parents or other family members. Millennials are highly educated with nearly 1 in 4 having earned a Bachelor’s Degree or higher. In addition to being the most educated generation, Millennials are also the most racially diverse generation, consisting of 19% Hispanic, 14% African-American, and 5% Asian. Millennials have an average yearly income ranging from $25K to $48K. Millennials are not largely religious they account for 1 of every 5 same-sex couples. Millennials tend to prefer to live in an urban environment, with the largest percentage being in the Western United States (MarketingCharts, 2014).
Looking at Millennials from a psychographic point of view, they are great team players who place great importance in family. This consumer group has a great deal of appreciation ad respect for authority. Millennials have high hopes for their future. This generation is extremely comfortable with technology and often depend on it for weather, news, current events, and social interactions. Millennials constantly seek social approval ad advice for their everyday actions and decisions (Get Busy Media, 2014).
The consumer group referred to as Millennials often hit life’s milestones at a later age than other consumer groups. On average 62% of today’s Millennials have never been married. A large portion, 19% of this consumer group are full or part time students, perusing a degree. This large number of Millennials continuing their education may be a factor in only 58% of Millennials being homeowners, while 37% are still renting on a month-to-month basis (Experian, 2014).
Role of Sub-Culture on Consumer Behavior
A subculture is defined as a group of people who closely share similar values, attitudes, and purchasing decisions even more so than within the broader culture. So by definition Millennials are part of a sub-culture. Millennials as a group see thi...