The $5.99 Question: Generational Differences
The Connected Generation Podcast: The $5.99 Question: Generational Differences, Episode 55 
In this week’s podcast, Lisa and I discuss Gen Y’s influence on purchasing decisions. If the Baby Boomers are the wealthiest generation in the US (with an annual spending power of over $2 trillion) why should companies focus on reaching Gen X and Y?
We recognize that the Boomers are a very important group to target, however our discussion highlights Gen Y’s influence on their older counterpart’s purchasing decisions and on the marketplace as a whole. Gen Y (making up 76-82 million Americans, depending on who you ask) is being dubbed as one of the most persuasive generations of all time.
A study conducted last year by Resources Interactive, concluded that young Americans, born between 1982 and 2000, have purchasing power of more than $200 billion a year and influence as much as half of all spending in the economy. Interesting findings from the study revealed that “81 percent of families don’t think about purchasing new fashions, or even old ones, without first consulting their teenagers” while more than 52% of all car buying is made after careful consideration of the youth’s opinion and research. (Read this article to learn more about the findings of the study.)
Another recent survey conducted by Burson-Marsteller demonstrates the powerful influence of the youth segment aged 10 to 18 – called “Youth-fluentials” – has on the products and brands their families and friends purchase. The Youth-fluentials study shows the influence of youth-driven word-of-mouth on the purchasing decisions of their their peers and parents. Key findings from the study revealed that nearly 100 percent of the 10-18 year-olds believe they influence their friends’ decisions about clothes and music, while more than 80 percent believe they influence their parents’ decisions regarding purchases ranging from electronics to food.
Needless to say, Gen Y is a powerful group of change agents that is influencing the way we all work, play and shop. We’re a marketing and tech savvy group of highly-informed consumers who Marshal Cohen, chief industry analyst at NPD Group, labels Generation I—for influencer. For once, I don’t mind the label.
This post was written by Cassie Pruett
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