Generation Y and Marketing - Research Proposal Example

Generation Y and Marketing Name Course Instructor’s name Date Gen Y and Marketing Key journal articles: 1. Arnould, Eric J. and Craig J. Thompson (2005), “Consumer Culture Theory (CCT): Twenty Years of Research,” Journal of Consumer Research, 31 (March), 868–82. 2. Cohen, Joel B. (1980), “Promoting Interdisciplinary Consumer Research: Institutional and Discipline-Based Criteria and the Faculty Reward Problem,” in Advances in Consumer Research,Vol. 7, ed. Jerry C. Olson, Ann Arbor, MI: Association for Consumer Research, 46–48. http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=9646 3. Friestad, Marian and PeterWright (1994), “The Persuasion Knowledge Model: How People Cope with Persuasion Attempts,” Journal of Consumer Research, 21 (June), 1–31. 4. Kaylene C. Williams, Stanislaus Robert A. Page (2005), “Marketing to the Generations”, Journal of Behavioral Studies in Business 31, 7-14 http://www.aabri.com/manuscripts/10575.pdf 5. Moore, M., and Carpenter, J.M. (2008), “Intergenerational Perceptions of Market Cues among US Apparel Consumers,” Journal of Fashion Marketing and Management, 12(3). 6. McLeod, E. (2009), “The Use (and Disuse) of Mobile Phones by Baby Boomers,” International Journal of Emerging Technologies and Society, 7(1), 28-39. http://www.swinburne.edu.au/hosting/ijets/journal/V7N1/vol7num1-article3.html 7. Spire Research (2010) Generation Y and Z Is marketing to the young all about technology Spire Research and Consulting Pte Ltd http://www.spireresearch.com/spire-journal/archives/generation-y-and-z/ 8. Robert Hogeboom (2004) generation y brand strategy http://www.marketingprofs.com/print.asp?source=/4/hogeboom2.asp Research Questions and hypothesis 1. Which is the most convenient method of purchasing for the generation Y? 2. What affects their spending preferences? 3. What would the generation Y like their online applications to do as pertaining to online shopping experience? Hypotheses 1: Social media will enable the mall to increase customer awareness of products and services available at the mall. 2: Social Media Will Enable The Mall To Increase Customer Spending And Retention. 3: Social Media Enables Increase In Revenue Growth. Data Collection Method to be used (choose 1 primary method) Qualitative: In depth one-on-one Interviews Focus group Interviews Quantitative: Online survey Proposed Sample population The research will sample the generation Y population that visits the mall at different times of the day Proposed Sample size is 100 to 150 people. Literature review Generation y is the generation that is born between 1980 and 1999. This generation is subjected to a social environment of overprotection that has caused them to stay longer in their parents’ homes. Hogeboom (2004) says this generation is found to be job hoping a lot as they seek the perfect opportunity to fully exploit their potential. This generation has seen a great deal of technological advancement and is fully technological savvy. They have the quickest access to information that has ever been seen in the world. The level of social interconnectivity is also highly advanced which makes it almost impossible to hold this generation down. Kaylene & Stanislaus (2005), say that Marketing to generation Y is tricky as they have diversity in what appeals to them. The attraction should reflect what they value and be presented in a way they want to see. This has heightened the need for research on the most effective way of attraction. Big brands such as Coca-Cola have employed the marketing strategy where they position themselves as more than a profit seeking organization. Instead, the brand appeals a by its originality, refreshment and classic position in the market and has earned a global adoration from all generation Y’s. The marketing strategy should therefore be more attractive to generation Y if it has an emotional appeal and represents personal freedom. Socially, the quest for personal freedom is attributed to their borderless upbringing. The overprotective nature of their parents has left them seeking emotional appeal from the brands they associate with. The marketing strategy adopted should develop the brand and not its generic products (Arnould and Craig 2005). In this way, the generation Y will be attracted to the empowering effect of associating with the brand. By marketing the brand the aspects of ease and flexibility of use will be most attractive to the generation Y. It should communicate majorly the limitless lifestyle and empowerment possibilities offered. The brand should instill a sense of ownership and belonging to attract the generation Y. This can be best achieved by projecting an image that the generation Y identifies with. Communication with generation Y is not effective with the use of chalk and talk. The generation is more experience oriented while traditional methods of communication stresses on learning. Whereas traditional methods of communication emphasizes on reaction the generation seeks to relate to the situation. Credibility is paramount to effective communication. Not only should the mode of communication be credible but also the communicators must have high credibility. Communication must portray an understanding and respect of the generations’ core values. It is impossible to know all about their culture and therefore they understand if the communication falls short of understanding them. The access to technology and the high levels of interactivity it provides has resulted in the increased need to have interactivity in all communication. The message being communicated must be relevant to their situation and in the area of interest. The generation Y will respond best if the message concerns them directly and has some visual appeal that maintains their attention. It must be delivered in the technological mode that the generation is familiar with and finds easy to use. In understanding the communication styles of the targeted audience it easier to reach them. Because of the over protective manner of their upbringing the communication should be interactive and involve them. There should also be a demonstration of genuine interest along with understanding. The communication is best will work best if it addresses issues of mutual concern for the individuals and the communicator. According to Williams and page, generation Y was born in the immense and first paced change which includes the full employment of women and respect for cultural diversity and the intensified social awareness. With computers in homes and schools, this generation has very fast access to information which has increased their awareness. The technological developments that they have witnessed have eliminated boundaries creating a wireless society with transparent global boundaries. They are accustomed to a society where anything is possible. Generation Y upholds image to be of more value with every individual wanting to identify with an image or make their own image statements. These individuals are noted to have greater values of choice, scrutiny and entertainment. They also have a higher sense of urgency and do not appreciate time wastage. To reach to this market needs deep understanding of the different segments that make it up. The teenagers of this generation are big spenders, selfish and live for the moment. The marketer has to appeal to their beliefs that they can make the future better. The organizational goals should speak more than the bottom line. The organization therefore must feature as an instrument of change as this generation craves exploration and new options. They are tremendously able to take advantage of technology and exploit its convenience in bringing on the change they want. It is important to continually be creative with the media and promotional themes to capture this audience as their response to marketing hype is low. An appropriate medium of advertising should be chosen. Generation y is more habituated to media and technological applications that are designed with their needs in mind. The content of communication should stress team spirit and indicate the new dimensions to attract the generation Y. In as much as the use of internet and newspaper is highly recommended; it is unlikely that they will subscribe to anything on the internet. Their interest in television is low and watching is on their own schedule and not the networks schedule. These individuals are raised in times of instant gratification and are therefore very impatient. The expect internet to be interactive, more value is placed on connecting and fitting in. They want to interact with their peers and are more on the social networking sites which allow interconnectivity. Because of their impatient nature, emails will not suffice in delivery of information at speeds they need. They rely mostly on instant messaging. The content of various suitable modes of communication is a must and the content must be fluid and move across different platforms. A research from the spire research and consultants (2010) indicates that media and communication technologies have had great impact on consumer trends and behavior. With the current generation being technology savvy, marketers are asking whether selling to the young generation is all about technology. This generation is characterized by high dependence on technology, higher levels of multi-tasking and having big spending habit compared to any other generation. This generation has the advent of shopping for entertainment and with the pervasiveness of the internet, the world has become borderless. Consumption is no longer limited to what is physically nearby. There is heavy use of internet with most youths spending over three hours online each day. This generation can access information faster. It is also easy and fast to change their tastes with advertising because they have low product loyalty. The dimensions which engage generation Y most are interconnectivity, show business, approachability, involvement and social consciousness. The interactivity of this generation has increased the need for marketers to increase their cybernetic manifestation. A detailed description of how and where to purchase the products must be given. To increase interactivity the marketer should use popular social media such as Facebook. This provides a platform for interactivity of marketer and customers and has a popularity index inform of the number of followers. This is found for popular brands such as coca cola and Pepsi which have a huge following on their Facebook page. Participation can be achieved with implementing marketing strategies that depend on technology such as mobile and internet which have higher yields with younger population (McLeod 2009). Entertainment dimension comes in where the marketers have to appeal to their sense of emotions and humor. This generation relates more to content that focus on lifestyle and fun. This will capture the attention and later the individuals can gather technical information about the product from the internet. Internet use has increased accessibility of this generation to information and services throughout the day. There is increased ability to give information of what the consumer expects and as well track online purchases. Through the internet the selling company can also give technical support immediately via chat rooms. As these individuals are born in a time of environmental crisis, this generation considers the environmental impact of products they purchase. McLeod (2009) has noted the significant role played by technology in the current society. Use of technology has contributed to more productivity, enhanced entertainment and creation of various options for communication. Customers are demanding more, richer interactive content, multifunction devices and higher innovation. Communication technologies have shortened and almost eliminated distances between buyers and sellers with higher levels of interactivity. The digital media has evolved from its previously analogous form to currently more visual and interactive. Mobile devices such as phones and tablets have had the inclusion of applications that maximize their use as communication mediums. The mobile phones have multifunctional capabilities with the convergence of technology. Customers’ are also forming new responses to the use of technology. This generation has shown higher aptitudes to processing information at higher speed. This fact is attributed to the dominance of visually oriented Medias such as video games, television and mobile phones in their psychological development. They therefore do not like to wait for websites to load and would move on to other pages or websites if a page takes too long to load. Generation y are also adept multitasks, this skill enables them to be more equipped to deal with multiple demands at a faster pace. Through multi-tasking behavior, the youth are gaining control over situations that can be managed through these technologies. Research Questions and Hypotheses Hypothesis 1: Social media will enable the mall to increase customer awareness of products and services available at the mall. The prospect of having a need and the buying power to satisfy that need is what determines initiation of the business transaction. Social media will provide a level platform for the buyer and the seller to communicate on the needs and satisfaction of the same. The most important aspect that social media contributes to businesses is the conversion of prospective customers into purchasing customers by the flow of information. It is this information that will create awareness in the prospective customer of the ability of the mall to satisfy needs. This will lead to attraction and spending by the customer. 2: Social Media Will Enable The Mall To Increase Customer Spending And Retention. Retaining customers is important for long run success of all businesses but it is at the same time a very complicated endeavor. With the possibility created by social media, it is easy to communicate value added content to customer. It is found that Rodrigues and Krishnan 2011 that effective customer relation management lead to increase in sales pursuit. The selling firms which use social media and other technologies to attract customers have higher retention. 3: Social Media Enables Increase In Revenue Growth. The aspect of customer retention and creation of new possibilities by attraction of new customers results into business growth. The effect of social media on revenue growth is a less researched area but recent industry financial reports show significant increase in revenue with implementation of a social networking strategy. It is on this basis that I postulate the possibility of having increased revenue by implementing a good social networking strategy. Research Questions 1. Which is the most convenient method of purchasing for the generation Y? As a result of the increased demand for variety by the generation Y, the most convenient method of business transaction is seen to attract a larger customer quota. By providing convenience and variety to this generation it is possible to increase the appeal that the mall has to them. Convenience can be in form of the possibility of checking the availability of a product by use of mobile phones or tablets. In this way the generation Y individuals will not have to waste time roaming through the mall just to end up not finding what they were looking for. 2. What affects their spending preferences? This generation is highly influenced by trends and what their peers are doing. It is from this that the postulation of their spending is derived. This research will seek to identify what other factors are responsible for their spending preferences and capitalize on that. The overall gain is to increase the spending and the revenue generated by the mall. With knowledge of these factors it will be possible to create an attraction to the otherwise complicated and stubborn generation and cause them to spend more. It is postulated that their spending is in accordance with the psychological reactance theory as the generation strives to blend in and fit with what is hip in the society. The degree to conform however varies with the individual. As a business majoring on the existence of this fact the mall can create a euphoric wave of attraction amongst the youth. With innovativeness and repackaging this can be kept up for long time as is done in the fashion industry (Moore & Carpenter 2008). 3. What would the generation Y like their online applications to do as pertaining to online shopping experience? The mobility and ease of access of applications allows the generation Y customers more flexibility and variance of choice. There however exists the lack of a custom made application per person and the individual ideas of the users may not be considered in the designing of application however useful they are. With this research it will be possible to give shoppers greater satisfaction by incorporating their ideas in designing applications that will solve their problems at this mall. These applications custom made for the mall will meet the customers’ expectations and improve their shopping experience as expected. Research method and data collection and proposed data collection method This research seeks to find out the how best to use technology to attract and retain the generation Y customers and how to maximize the marketing strategy. The research will use the following methods of data collection: 1. Qualitative data will be gathered by use of focus group interviews This is to explore the research topic further and gain a broader non statistical understanding of the topic of study. Data collection for formation of qualitative research will not be defined for the user to avoid any bias. To achieve these interviews will be conducted by several people. Generally, this method involves few resources and will lessen the cost of research. The participants are randomly selected from the entrants to the mall. According to Cohen, (1980) this method gathers generalized perception of the participants on the use of technology in marketing products. 2. Quantitative data will be gathered by online survey, face to face survey. Qualitative data will be a descriptive approach and will rely solely on the respondents’ perception of the situation and research question. The data will be collected from responses to online surveys. This will also give information on the use of internet to seek shopping information because the surveys will be posted to online information kiosks. In-depth interviews will be used with the professional it experts to get detailed information on the extent that technology can be used to promote spending by customers. The complexity of the nature and ability of technology will warrant the proposed method of research. Participants The sample participants will be restricted to the age group that makes up the generation Y to avoid voluminous and unnecessary data. With the online survey, all responses that will come from participants outside the generation y age bracket will be considered irrelevant. The participants have to be people who are born in the years 1980-1994. The sample size will be 100 to 150 of generation y irrespective of race or employment status. Interview location The research will be conducted at the malls lobby where participants will be approached and asked to participate in a face to face interview. Online surveys will be responded to by online shoppers from whichever location they are in. Work schedule and timeframe The interview will be conducted on 16th of February to the 21st of February. The time for the interview will be varied to capture the different shoppers who have varying shopping time allocations. Online surveys will run for the whole month of February. The data analysis will be done as from 1st to the 15th of March. Research Questionnaire 1. Please indicate your age. _________________________ 2. Are you part of any online social networking society? Yes No 3. If not, why? ____________________________________________________________________ 4. What is your favorite social networking site? ____________________________________________________________________ 5. Please give reasons for your use of social networking site. __________________________________________________________________________________________________________________________________________ 6. Have you ever purchased anything because of the recommendation you received from a social networking site? Yes No 7. How many shopping pages are you a fan of on your social networking site? _______________________________________ 8. Do you feel that using social networking sites has made you more aware of what is available in the market? __________________________________________________________________________________________________________________________________________ 9. On a scale of 1 to 10, 1 being 100% trustworthy, to what extent you trust the information you get from the social networking site about products and services. Tick the appropriate number. 1 2 3 4 5 6 7 8 9 10 10. Have you subscribed to any promotional alerts on your social network account? Yes No 11. Has your social interaction influenced your spending habits Yes No Explanation: __________________________________________________________________________________________________________________________________________ THANK YOU FOR YOUR PARTICIPATION References Arnould, Eric J. and Craig J. Thompson (2005), “Consumer Culture Theory (CCT): Twenty Years of Research,” Journal of Consumer Research, 31 (March), 868–82. Cohen, Joel B. (1980), “Promoting Interdisciplinary Consumer Research: Institutional and Discipline-Based Criteria and the Faculty Reward Problem,” in Advances in Consumer Research,Vol. 7, ed. Jerry C. Olson, Ann Arbor, MI: Association for Consumer Research, 46–48. http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=9646 Friestad, Marian and PeterWright (1994), “The Persuasion Knowledge Model: How People Cope with Persuasion Attempts,” Journal of Consumer Research, 21 (June), 1–31. Kaylene C. Williams, Stanislaus Robert A. Page (2005), “Marketing to the Generations”, Journal of Behavioral Studies in Business 31, 7-14 http://www.aabri.com/manuscripts/10575.pdf Moore, M., and Carpenter, J.M. (2008), “Intergenerational Perceptions of Market Cues among US Apparel Consumers,” Journal of Fashion Marketing and Management, 12(3). McLeod, E. (2009), “The Use (and Disuse) of Mobile Phones by Baby Boomers,” International Journal of Emerging Technologies and Society, 7(1), 28-39. http://www.swinburne.edu.au/hosting/ijets/journal/V7N1/vol7num1-article3.html Robert Hogeboom (2004) generation y brand strategy http://www.marketingprofs.com/print.asp?source=/4/hogeboom2.asp Spire Research (2010) Generation Y and Z Is marketing to the young all about technology Spire Research and Consulting Pte Ltd http://www.spireresearch.com/spire-journal/archives/generation-y-and-z/ Read More