CHAPTER 2 STREAMING SERVICES AND MARKETING
2.5 GENERATION Y
Generational research aims to figure out how the average individual varies from one generation to another (Twenge & Cambell, 2008:863). Age is one of the most common predictors of variances in the attitude and behaviour of a person (Pew Research Centre, 2015). A generational is a group of individuals born during a specific period of time and who witness the same historical
events. The group also appears to have common principles, beliefs, ideals and systems of belief (Downdenr, 2019; Buzza, 2017; Johnston, 2013). The essay by Mannheim (1952) entitled "The Problem with Generations", is regarded as a ground-breaking generational study. The goal of the essay was to illustrate how life experiences shape and affect the perception and world views of people from different social groups, races and geographical boundaries (Espinoza, 2012:16;
Pilcher, 1994:491). Individuals may not be selective in which generational group they choose to belong to (Kowske et al., 2010:266). Marketers prefer to use generational lines to segment their market (Bevan-Dye et al., 2012). To separate generational, Markert (2004:21) and Boyle et al.
(2018) advocate using 20-year intervals. There are five generations currently alive, namely the Silent Generation, Baby Boomers, Generation X, Generation Y, as well as Generation Z (Wiedmer, 2015:55). The focus group of this study is Generation Y. Since this generation has been highly influenced by the technological revolution by the emergence of digital media and the internet, this market segment has evolved and became a dominant force in the marketplace The term “Generation Y” was coined in the early 1990s and was used in 1993 for the first time in an editorial published in a marketing trade journal called Advertising Age (Constantine, 2010:3).
The goal of using this term was to distinguish this group of individuals from those of Generation X. Echo Boomers, Millennials and the Net generation are often referred to as the individuals who form part of Generation Y (Schiffman et al., 2012:355; Cudmore et al., 2010:4; Schlitzkus et al., 2010:108).
There is a lack in consensus about the exact start and end dates of any given generation (Reeves
& Oh, 2007:296). Several scholars categorise individuals born in the 1980s as part of Generation Y (Robinson, 2018; Olson, 2014; Bolton et al., 2013:246; Markert, 2004:21). However, Knight (2014) argues that individuals born in the late 1970s are also members of Generation Y. The uncertainty regarding the dates assigned to the different generations causes some confusion as to whom Generation Y includes. Market (2004:21), a renowned sociologist, suggests that generations should be divided into 20-year cohorts. Therefore, for the purpose of this study, Generation Y is defined as individuals born between 1986 and 2005 (Eastman & Lu, 2012:94;
Markert, 2004:21). Given this definition, in 2020, individuals that form part of Generation Y were aged between 15 and 34 years and accounted for 31.5 percent of the world’s population and 35 percent of the estimated 59,31 million individuals living in South Africa in 2019 (Stats SA, 2019;
Bloomberg, 2020; Worldometers, 2020).
Generation Y has several traits that distinguish them from previous generations, as a result of the different economic and cultural environments in which they were raised (Levy, 2015; Codrington,
created new behavioural standards as they possess dynamic independence and autonomy (Williams et al., 2010:9). Individuals within this generation show technological superiority to those of previous generations, as they witnessed the arrival of technological growth and development.
As such, Generation Y is generally referred to as the “connected generation” (Indeed, 2020;
Wilder et al., 2007:3). These individuals experienced the development of the internet, mobile telephones, virtual social networking and 24/7 television access first-hand (Sox et al., 2014:247;
Weidauer, 2012:18; Schwalbe, 2009:53). Digital access and devices are considered essential elements of daily life, which has led these individuals to thrive on technology and its innovations (Thompson, 2018; Smith, 2012:86; Weidauer, 2012:18). According to Pew Research Center (2019), 78 percent of Generation Y individuals subscribe to home broadband, while 19 percent of them are smartphone-only internet users. Furthermore, nine out of ten Generation Y individuals own a smartphone, which represents approximately 93 percent of the segment, while 53 percent own a tablet (Vogels, 2019). Since 2015, computer usage among Generation Y decreased; they typically spend approximately 31 minutes a day using a desktop PC, while mobile internet activity increased to approximately 211 minutes daily (Statista, 2019; Dixon, 2018).
The rapid advancement of technology has accustomed Generation Y individuals to multitasking, as they tend to use multiple devices constantly and simultaneously (Kane, 2019; Nahai, 2013).
According to research, these individuals shift their attention between smartphones, laptops, tablets and television approximately 27 times an hour (Kane, 2019). They tend to perform three additional activities while watching television, such as browsing the internet, responding to emails, texting, social networking or shopping online (Friedman, 2017; Deloitte, 2015). Consequently, their senses are being bombarded with brands, individuals and platforms all fighting to capture their already divided attention (Nahai, 2013). Therefore, it is essential for marketers to understand the segment’s unique characteristics, as it will provide them with a solid foundation for developing effective brand communication and marketing strategies (Howell, 2012). This generation’s unique pattern of characteristics, motivators and expectations influence their responsiveness to marketing strategies (Benckendorff & Moscardo, 2010:45; Hawkins & Mothersbaugh, 2010:132).
Generation Y individuals tend to be more responsive to digital marketing than to traditional media channels (Mcintosh, 2015; KPMG, 2015:18). In terms of social media usage amongst Generation Y individuals, the applications they spend the most time on are Facebook Mobile, Instagram and Twitter (Patel, 2017; Spencer, 2009). Marketers need to keep their strategies relevant and engaging across a variety of applications, as Generation Y absorbs and interacts with information differently across various platforms (DesMarais, 2018). Marketers can boost their marketing campaigns by targeting the Generation Y segment by means of engaging videos focusing on the
need and reward of owning a particular product (Fishback, 2019). Generation Y individuals tend research a product before they purchase it, which is a reason that marketers should create advertisements that demonstrate the functionality of a product (Taylor, 2020). The use of testimonials or reviews from previous customers is beneficial, as Generation Y individuals are persuadable by information that guides them to make good decisions (Taylor, 2020). This generation tends to share their consumption-related experiences on digital platforms on a regular basis, enabling their peers to make informed purchase decisions (Gailewicz, 2014). This generation values customer opinions rather than company generated content when it comes to marketing (KPMG, 2015:18; Smith, 2012:86).
Companies should shift their focus on selling their purpose to Generation Y and not only their product (DesMarais, 2018). This generation is not focused on the features and benefits of a product as much as wanting to know how companies contribute to improving the world (Kulkarni, 2018). Approximately 37 percent of Generation Y individuals are willing to purchase a product that supports a cause that they believe in (Patel, 2017).
Generation Y is considered to be the ideal target market for streaming service providers to approach. Historically speaking, Generation Y is considered to be the first digitally connected generation. Using technology comes naturally to this generation and it is seen as an integral part of their lives (Barton et al., 2012:4; Taylor & Keeter, 2010:1). Furthermore, they are accustomed to getting what they want, when and where they want it (Pollak, 2014). This is exactly what streaming services offer subscribers - the power to choose what they want to watch and listen to, at any given time (Shilts, 2017). The personalised features and convenience of streaming services are relative advantages over cable television, as this generation responds well to personalised messages and services; it makes them feel special, which is a major factor of persuasion in terms of their preferences (Smith, 2011:6; Marketing Breakthroughs Inc. 2008).