Archive for the 'Youth Marketing' Category

 “Gen Z” should make you cringe!

Adults have a number of misconceptions about youth generations. A glaring one is a tendency to think that a new generation will become a more intense version of the previous generation. That is rarely the case – new generations tend to sharply break with the old.

Let’s start by reviewing what a generation is. A generation is a cohort of people who share a common location in history. A generation progresses through life stages together and experiences key life events (childhood, adolescence, family life, retirement) at the same time. While our life stages change as we age, our generation does not. There is a commonality of experience and perspective that influences how a generation reacts to challenges presented by any given life stage.

While generational beginning and end points are hotly debated by academics, they tend to be bounded by historical events. For instance, the Boomer generation is known as the generation born after WWII ended as birth rates rapidly grew. Xers are those that were born during the subsequent demographic dip. Millennials began as an “echo” boom occurred as the large Boomer generation had their own children.

Generational change is abrupt and disruptive.  My own experience with this goes back to when the Millennial Generation (born 1982 – 2004) was coming of age in the 1990’s. At the time I was conducting studies of young people and was noticing clear breaks in the data sets. Inflection points often appeared when we graphed research measures by age. It took me years to realize these inflection points weren’t linked to a stage of development or age as they were migrating upwards over time. Eventually, I discovered these inflections were happening right at the generational break line – as soon as individuals born in the early 80’s came into the data sets, things changed.

It took me years to figure this out because this generation was most commonly referred to as Gen Y at the time. What does Gen Y mean? To me, it meant this new group would be a continuation of Gen X – only they would exhibit Gen X traits at higher intensity. I went to many youth conferences where speakers said precisely this. I often left puzzled, as what they were saying didn’t line up with what I was seeing in the data we gathered.

This new generation wasn’t behaving anything like Gen X. While Gen X was filled with latchkey kids who had developed a strong sense of individualism, independence, and self-worth, this new generation was all about teamwork, parental structure and oversight, and continuous feedback and validation. Calling them Gen Y seemed ridiculous as it implied they were merely an extension of Gen X. Thankfully, although the Gen Y moniker persisted, the term Millennial soon took hold.

Generations have unique characteristics and tendencies. These characteristics are almost never simply continuations of a previous generation’s characteristics. We can all agree that Boomers have not acted at all like their Silent Generation predecessors or that Xers haven’t been at all like Boomers. Millennials represent a further break with Xers.

There is no authority that has been commissioned to name a generation. Generations prior to Boomers weren’t really named during their time and many will claim that the Boomers were the first named generation. Prior generations were largely named by historians long after they had existed. For example, nobody called the WWII generation the “greatest generation” or the “GI generation” at the time – these terms took hold well after Boomers had been named.

Generational names evolve. Names often begin as something that underscore how adults don’t understand that generations are not just continuations of the previous generations. As an example, Gen X was most commonly called “the baby bust” generation at first, implying that they were  merely a consequence of a birth rate decline extending from the baby boom era. The term “Gen X” was popularized in a novel by Douglas Coupland. It became popular not because of the letter X but what this letter signified – a lack of a name for a largely forgotten generation, but also one that wasn’t particularly interested in being categorized or targeted.

The term Millennial was also established relatively late in the game. It was popularized in a book called Millennials Rising, and prior names either reflected a continuation of a parental generation (“the echo boom”, the “boomlet”) or of Gen X (“Generation Y.”). Millennials is a much better name and has largely taken over for “Generation Y.”

The whole purpose of naming generations from a marketing sense is that generations represent segments of consumers with unique needs. Our goal in naming them should be to show how they are distinct from each other.

Which brings me to Gen Z. This is a term we are seeing more and more, and I am tending to feel that those who use it are displaying a fundamental ignorance not only of generational change but even what a generation is. Gen Z tends to be used to describe today’s adolescents. But, because the youngest Millennial is currently 13 years old, the term Gen Z isn’t being applied to a new generation at all. It is being used to describe young, late-stage Millennials, which is sort of a segment of a segment.

The key characteristic of this microsegment (late-stage Millennials) of interest to researchers is that their parental generation has changed. Whereas the oldest half of the Millennial generation was largely parented by Boomers, the younger half has been parented by Gen X. This has some implications, but today’s teens are still Millennials and will exhibit Millennial traits.

The term “Gen Z” makes is cringe-worthy as it lays bare a fundamental misunderstanding of the generations. I even saw a study released recently on “Gen Z college students.”  Not sure I understand that, as the leading edge of the generation after Millennials is at most 12 years old currently. We are at least five years from the first member of the next generation showing up on campus.

“Gen Z” is also being used to refer to the generation that will come after Millennials (currently children aged up to 12 and yet to be born).  I have also seen this new generation referred to as “post-Millennial.”  And, what are we to name the generation that comes after this Gen Z? We’ve run out of letters, so perhaps we will have to use a spreadsheet convention and call them Generation AA.

Just like for previous generations, I’d expect to see today’s youngest generation eventually named in a way that describes who they are. I have heard some reasonable candidates:  The Homeland Generation, the iGen, The Pluralist Generation, etc. These all are descriptive. If the past is any indication, sometime in the next 10 years some name will achieve consensus (and it won’t be “Gen Z”).

For now please join me in cringing whenever you hear someone say the term “Gen Z.” J.

Americans value money and brains over looks

We recently posed a question on a national poll which required Americans to make an interesting choice:

If you could have one of the following, which would you choose?

  • I would have more money than I have today
  • I would be smarter than I am today
  • I would be better looking than I am today

This is a provocative cocktail party question. How would you answer it? How might your answer change depending on your life stage – would you answer it differently 15 years ago or 15 years into the future?

Across all ages (18+), 61% of Americans choose more money. It would be interesting to pose this question internationally to learn if this finding reflects American culture and capitalism or if this result reflects something universal to all people. Overall, 26% of US adults choose being smarter and 12% choose being better looking. So, it can be said that Americans value money and brains over looks.

We should note that there wasn’t a gender difference in the results. Males and females were just as likely to say all three options. There were a couple of interesting racial differences. Hispanics were least likely to say they would like more money and most likely to say they would like to be smarter. Blacks were as likely as others to say “money” but were more likely than others to say “better looking” and less likely to say “smarter.”

But, by far the largest and most interesting differences in this question related to the generation of the respondent. We’ve seen the Millennial generation maligned quite a bit recently, hearing that they are entitled and a bit lazy. We’ve never quite believed that, as the perception that a youth generation is disrespectful and lazy has been true since before the term “generation” was coined.

For instance, this is a quote from Socrates, and is about 2,400 years old:

“Children today are tyrants.  They contradict their parents, gobble their food, and tyrannize their teachers.”

Mark Twain, late in his life, had this to say about children:

“When a child turns 12 you should put him in a barrel, nail the lid down, and feed him through a knot hole… When he turns 16, plug the hole.”                                              

One of the more cynical (and unintentionally humorous) quotations about children came from Clarence Darrow, almost a century ago:

“The first half of our lives is ruined by our parents and the second half by our children.”

But, back to our poll question.  There are currently five living generations:

First birth year

Final birth year Current youngest member

Current oldest member

Silent

1925

1942 75

92

Boom

1943

1960 57

74

Gen X

1961

1981 36

56

Milllennials

1982

2004 13

35

Homelanders 2005 2017 0

12

Which one do you think would be the most apt to choose “more money” in our question? We’d presume that most people would predict it would be Millennials. But, in reality, it is Boomers who are most likely to say money:

More Money Smarter Better Looking
Silent

54%

37%

9%

Boom

71%

19%

11%

Gen X

65%

26%

10%

Milllennials

52% 31%

17%

There are fascinating generational differences in this table.  Howe and Strauss have developed an excellent generational theory, and one aspect of it is that a generational cycle recurs through four archetypes. So, typically, a current youth generations will have a similar type and outlook as the oldest living generation. This theory is supported by the table above. It is the oldest (Silent) and youngest (Millennials) generations that are least concerned with money and relatively most concerned with being smarter.

Boomers come across as the most money-obsessed generation, which is interesting as they are in a life stage where personal net worth tends to peak. 71% of Boomers would prefer more money to being smarter or better looking.  Of course, with all generational conclusions, it could be more of a life stage issue at work – Boomers are currently between 57 and 74 years old and perhaps pre- and early-retirement are particularly money-centric life stages. But, we suspect that if we had conducted this poll over time Boomers would have been highly concerned with money compared to other generations throughout all life stages.

Finally, these results underscore a point we like to make with clients. It is challenging to fully understand a generation unless we widen the sampling frame and interview other generations as well. Had this question just been asked of Millennials, we may have concluded that money was an overriding concern for them. It is only when comparing them to other generations that we see that they value intelligence and smarts more than others.

Battle of the Brands is available for purchase!

boxing-glove

How does your brand compete with others in the battle to win today’s youth?

Crux Research has conducted a syndicated study of 57 youth-oriented brands that is available for purchase on Collaborata.  We have a “data only” option for sale for $4,900 and an option including a full report and consultation/presentation for $9,500.

Brands that succeed with Millennials can enjoy their loyalty for years to come. This study’s 13- to 24-year-old group is often given short shrift by brands that have a more adult target. That can prove to be short-sighted thinking. Teens and young adults not only spend significant amounts of their own money, they also influence the spending of parents, siblings, and other adults in their lives. They are the adult shoppers of the future; building a relationship with them now can translate into loyalty that lasts their lifetime. This study shows you exactly where your brand fares among this critical cohort right now and what you need to do increase young consumers’ engagement with your brand.

More information about this study can be found here.

Objectives for our “Battle of the Brands” project are as follows:

  • Compare and contrast the relative strengths across a variety of measures of 57 youth-oriented brands.
  • See how your brand is “personalized” — learn where it statistically maps across 32 brand personality dimensions.
  • Discover how the 57 brands fare on the key measures of Awareness, Brand Interaction, Brand Connection, Brand Popularity, and Motivation.
  • Take away key insights into why some brand succeed, while others struggle, with these Millennials and Gen Z consumers.
  • These brands have been selected from a wide range of categories, including social causes, media and entertainment, retail, technology, and consumer packaged goods.

Become a co-sponsor of this actionable today! Increase your brand’s youth standing tomorrow.

Asking about gender and sexual orientation on surveys

When composing questionnaires, there are times when the simplest of questions have to adjust to fit the times. Questions we draft become catalysts for larger discussions. That has been the case with what was once the most basic of all questions – asking a respondent for their gender.

This is probably the most commonly asked question in the history of survey research. And it seems basic – we typically just ask:

  • Are you… male or female?

Or, if we are working with younger respondents, we ask:

  • Are you … a boy or a girl?

The question is almost never refused and I’ve never seen any research to suggest this is anything other than a highly reliable measure.

Simple, right?

But, we are in the midst of an important shift in the social norms towards alternative gender classifications. Traditionally, meaning up until a couple of years ago, if we wanted to classify homosexual respondents we wouldn’t come right out and ask the question, for fear that it would be refused or be found to be an offensive question for many respondents. Instead, we would tend to ask respondents to check off a list of causes that they support. If they chose “gay rights”, we would then go ahead and ask if they were gay or straight. Perhaps this was too politically correct, but it was an effective way to classify respondents in a way that wasn’t likely to offend.

We no longer ask it that way. We still ask if the respondent is male or female, but we follow up to ask if they are heterosexual, lesbian, gay, bisexual, transgender, etc.

We recently completed a study among 4-year college students where we posed this question.  Results were as follows:

  • Heterosexual = 81%
  • Bisexual = 8%
  • Lesbian = 3%
  • Gay = 2%
  • Transgender = 1%
  • Other = 2%
  • Refused to answer = 3%

First, it should be noted that 3% refused to answer is less than the 4% that refused to answer the race/ethnicity question on the same survey.  Conclusion:  asking today’s college students about sexual orientation is less sensitive than asking them about their race/ethnicity.

Second, it is more important than ever to ask this question. These data show that about 1 in 5 college students identify as NOT being heterosexual. Researchers need to start viewing these students as a segment, just as we do age or race. This is the reality of the Millennial market:  they are more likely to self-identify as not being heterosexual and more likely to be accepting of alternative lifestyles. Failure to understand this group results in a failure to truly understand the generation.

We have had three different clients ask us if we should start asking this question younger – to high school or middle school students. For now, we are advising against it unless the study has clear objectives that point to a need. Our reasoning for this is not that we feel the kids will find the question to be offensive, but that their parents and educators (whom we are often reliant on to be able to survey minors) might. We think that will change over time as well.

So, perhaps nothing is as simple as it seems.

“I wish that I could be like the cool kids”

In today’s digital environment, marketers are often seeking a viral way to spread news about their product or to stoke a trend. Traditional thinking was that trends spread predictably. Trends were seen to launch on the west coast (usually from urban environments), spread to the east coast, and eventually make their way to middle America and a mass market. This is why so many “cool seeker” or “trend seeker” researcher panels were established. By connecting to the cool kids in the right environments, marketers could get an early sense of what was going to happen next and get on board for the ride. They could seed ideas with the right audience and let nature take its course.

The Internet has largely blown up this paradigm. It has become a great “leveler” of youth trends. Now, a trend can start anywhere, become viral seemingly randomly, and spin out of control quickly. A geographic center of trends is hard to pinpoint if it exists at all. In research, “trend seeker” panels have become more of an oddity in market research – and have been supplanted largely by online communities of teens from across the country.

How can a communications and “connecting” technology (the Internet) have such a profound impact on how innovations and trends take hold?

Innovation diffusion to the mainstream has been the subject of academic study for some time.  Perhaps the most seminal work in the field came in 1962 when Everett Rogers published The Diffusion of Innovations. This book has been required reading at MBA marketing programs for more than 50 years.

In this book, Rogers outlines a classic theory. Innovators (2-3% of the population) start using a product. Early adopters (10%-15%) see what the innovators are doing and jump on board quickly. Next, the early majority (30%-35%) jumps on board as the hype around the product peaks. The late majority (30%-34%) gets on board. Finally, eventually the laggards (10%-15%) join in.

For decades, this thinking caused marketers to focus a disproportionate effort on the innovators – the 2%-3% of the population that supposedly spark new trends. This concept is the underpinning of why marketing dollars flow towards young people, urban consumers, minorities, etc. as marketers hope to start a chain reaction through the Rogers segments. Why have we had such a focus on youth marketing? It isn’t because they have a lot of money to spend, as compared to other age segments they don’t.  It is because marketers feel they are influential.

New media and viral marketing has made this thinking even more prevalent. If we can just reach the influencers, we’ll let loose a viral effect and sell a lot of product. Unfortunately, this thinking is a good example of applying an old paradigm to a new world.

Even in the pre-Internet past, this thinking tended to work more on a “fad” than a “trend” level. To illustrate this, in presentations I often ask the audience to write down what they think the most successful marketing brands and products have been in the past 10 years that are youth-oriented. I pause, and then list them out on a whiteboard. Typical responses are as follows:

  • The iPhone
  • Harry Potter franchise
  • American Idol
  • Barbie
  • National Football League
  • Various Boy Bands

I then point out that franchises like these, which have hit it incredibly big with youth, all have one thing in common. They didn’t diffuse to the mainstream in the Rogers fashion. They didn’t start by being popular with cool kids. Rather, they found a way to go directly to the mainstream. Oftentimes, they got there by being shunned by the cool kids.

I believe the rise of the Internet will eventually (once they catch on) cause marketers to stop thinking in the traditional way about how new trends diffuse to the mainstream. The introverted kid in the Midwest who has a popular blog is fast becoming more influential than the hipster on the street in Los Angeles. Marketers will find more direct tributaries to the mainstream, and the cool hunter research panels that still exist in the market research industry will disappear.

How the truth campaign plans to end youth smoking once and for all

Excellent article on a great client!

http://www.fastcocreate.com/3049629/behind-the-brand/how-the-truth-campaign-plans-to-end-youth-smoking-once-and-for-all

Millennials as Entrepreneurs?

shark-tank-sharks

A few years back, I followed a symposium speaker who described how today’s youth generation (Millennials) were likely to be highly entrepreneurial. Her reasoning seemed to be that big ideas and companies tend to be launched by young trendy people willing to take risks, that experiences such as the founding of Facebook show how far technology can take a young person with big ideas, and that there are so many Millennials that big things were about to happen.

I disagree. Here is a prognostication to file and look at in about 20 years: when all is said and done, history will judge Millennials as one of the LEAST entrepreneurial of the recent generations.

Why? There are some key characteristics of Millennials that lead strongly to this conclusion.

  1. Millennials are risk-averse. If you look at long term trends on almost any risk behavior, you will see that Millennials are on the good side of history.  Drug, alcohol, and tobacco use has plummeted, crimes committed by young people have declined, teen pregnancy rates are at their lowest in decades, and college attendance is at an all-time high.
  2. Millennials have grown up in a world of structure and protection. This is a “comfortable” generation that largely hasn’t felt a need to act out or to fend for themselves as children.  Just a generation ago Gen Xers were known as lightly-parented, latch-key kids, who as a consequence had to learn to find their own creative solutions to problems they encountered.  Millennials have not had to develop these types of skills. In fact, many Millennials expect to move back in with their parents for a time post-college, and much of this boomerang mentality is from a desire to return to their parents, not just out of economic necessity.
  3. As Millennials have come of age, the education system has evolved in a narrow way, with an almost exclusive focus and reward structure around STEM fields. Many would say that creativity has become collateral damage along the way. This develops college graduates with incredible technical skills, but boxes them in creatively.
  4. Today’s employers are focusing more than ever on the care and feeding of their Millennial employees. They no longer hire gobs of college graduates and let them fight their way to the top.  Rather, they have instituted career advancement and mentorship programs and seem much more willing to invest in the development of their young employees.
  5. Finally, Millennials seek structure and security in employment. Each year Universum conducts a college student survey which asks pending college graduates whom their ideal employer is. Just as the Millennial generation started graduating college, larger organizations, former startups that had become huge companies, and even governmental agencies started taking over the top 10. Would you believe that the #3 most desirable employer among humanities graduates is currently the US Department of State? Or that #4 is the United Nations? Or that #6 is the FBI? Incredibly, even the NSA makes the top 10.

Millennials seem perfectly formed for larger organizations that take the time truly understand them. They will desire the structure and caring these organizations can provide as it parallels the structure and caring that has surrounded them their whole lives.  They will of course want to be able to express their ideas and find creative solutions to problems.  What we are now seeing in large organizations is a willingness to allow them to do so.

This is not to say that in 20 years we won’t look back and see some incredible firms that were started by Millennials, as we certainly will. But, compared to their Gen X predecessors, I’ll be very surprised if this generation is characterized as entrepreneurial in a historical sense.

Just ask them: 9 out of 10 high school students are above average

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We often have a need to ask a question that relates to academic performance in studies – so we can analyze results across a range of academic achievement. We necessarily have to rely on self-reports, and kids and teens tend to paint a fairly optimistic performance of their academic performance.

I used to think that this sort of optimism associated with your grades tended to result from faulty memory more than anything intentional. I know that my high school GPA and my college track times have miraculously improved as I have aged. But our results suggest that this isn’t the case – that students will greatly overstate their academic performance while they are still in high school.

The question we ask is straightforward: Which best describes your academic performance so far?

What we find is the following …

  • 7% of students will say they are in the top 1% of the class
  • 17% will say they are in the top 5%
  • 38% will say they are in the top 15%
  • 61% will say they are in the top 25%
  • 90% will say they are in the top 50%

So, 90% of high school students feel they are above average academically.

Is this a problem? I tend to think not – having confidence and a healthy sense of self-worth can be a good thing as children move out on their own. However, when this inflated sense of performance moves towards narcissism or unrealistic expectations it can be setting our children up for failure.

It can be challenging to ascribe a cause to this. Most commentators agree that the Millennial generation is characterized as being over-protected and having adults in their lives who continually reinforce how special they are. Grade inflation in schools and colleges can engender this feeling. Youth sports have moved to encouraging and reinforcing participation at least as much as rewarding successful competition. I suppose this all yields a generation with a healthy ego, but not necessarily one that has learned to deal with failure.

When searching for causes, we need to look towards parents as well, as they set the context for their children. In a parallel study, we have shown that parents are even more likely to feel their children are above average than the children themselves are. Among parents …

  • 11% will say their child is in the top 1% of the class
  • 40% will say their child is in the top 5%
  • 63% will say their child is in the top 15%
  • 84% will say their child is in the top 25%
  • 93% will say their child is in the top 50%

Again, while there may be positives in parents being optimistic regarding the abilities of their children, it can also be a cause of complacency. Why does the US lag other countries in test performance? Perhaps when this many parents overstate their children’s academic achievement it is difficult to create any urgency behind the issue. It is quite common on surveys to see parents state that the nation’s schools are doing a poor job, but their local district is outstanding.

“Well, that’s the news from Lake Wobegon, where all the women are strong, all the men are good looking, and all the children are above average.” –Garrison Keillor