Consumer preferences of Generation Y

Abstract

Generation Y (born between 1982 and 2002) has caught the attention of researchers due to the sheer size of this consumer segment and also its significant spending power. The purpose of this exploratory research was to cluster Generation Y concertgoers to various concerts held in South Africa during 2012 and 2013 based on their age to identify and profile different market segments at the concerts. Data were collected at eight live music performances, during 2012 and 2013, by performers Linkin Park, Adam Lambert, Celtic Woman, Lady Gaga, Red Hot Chilli Peppers, Bon Jovi, Justin Bieber and Rodriguez. This resulted in a total factor analysis conducted to identify the main motives of Generation Yers to attend live music performances. Generation Yers were then divided into three groups based on their age in order to give a better idea of the differences among these concertgoers. Three Generation Y clusters were identified, namely, Tweens, Twixters and Tweeds. Analyses of variance, two-way frequency tables and χ2 tests showed significant differences between the segments in terms of socio-demographic and behavioural characteristics as well as motives. Based on the results, it is evident that generation theory needs to be taken into consideration, and it can be a useful tool to segment markets.