Jai MR

INDUS BUSINESS ACADEMY
LAKSHMIPURA, THATAGUNI POST
KANAKAPURA MAIN ROAD
BENGALURU, 560082, INDIA
WWW.IBA.AC.IN
“Difference between Consumer Behaviour of Millennials and Generation X”
A Project Report for the partial fulfilment of the requirement for

Post-Graduate Diploma in Management
Subject: Theme Paper
Under the supervision of
Prof. J.B. Shetty
Submitted to the Indus Business Academy, Bengaluru
Submitted by,
JAIVARDHAN RATHOD
FPB1820/071
Indus Business Academy, Bengaluru, India
Signature of Project Supervisor:
Professor. J. B. Shetty
IBA PGDM 18-20 Market Research Jaivardhan Rathod
Declaration
I, JAIVARDHAN RATHOD, hereby declare that the project report entitled “Difference between Consumer
Behaviour of Millennials and Generation X” submitted in partial fulfilment of the requirements for the
degree of Post Graduate Diploma in Management (PGDM) of Indus Business Academy, Bengaluru. This
Theme Paper is my ORIGINAL WORK and not submitted anywhere else for award of any other degree/
diploma/ fellowship.
Student’s Signature
Name of the Student: JAIVARDHAN RATHOD
Registration No.: FPB1820/071
Date:
02 Apr. 18 i
Director’s Certificate
This is to certify that JAIVARDHAN RATHOD, FPB1820/071 Student of Indus Business Academy,
Bangalore has done a theme project on “Difference between Consumer Behaviour of Millennials and
Generation X” in partial fulfilment for the award of PGDM and has submitted the report.
To the best of my knowledge this project work is original and it has not been previously submitted as part of
another degree or diploma of any other institute or university.
Dr. Subhash Sharma

Director
Indus Business Academy
Bangalore 560062
02 Apr. 18 ii
Acknowledgement
I am using this opportunity to express my profound gratitude and deep regards to everyone who supported me
throughout the course of my theme Paper. I am thankful to my friends and faculty members.
I take this opportunity to extend my sincere thanks to Mr Manish Jain, CEO for offering me such a unique
platform to exposure and learn.
I wish to thank my Mentor Prof. J. B. Shetty for his exemplary guidance, monitoring and constant
encouragement throughout the course of the theme Paper titled “Difference between Consumer Behaviour
of Millennials and Generation X”.
JAIVARDHAN RATHOD
FPB1820/071
Indus Business Academy
Bengaluru
02 Apr. 18 iii
Certificate
This is to certify that Mr JAIVARDHAN RATHOD of INDUS BUSINESS ACADEMY, Bengaluru,
Registration number: FPB1820/071 is pursuing a Post Graduate Diploma in Management under my guidance,
he has submitted his project entitled “Difference between Consumer Behaviour of Millennials and
Generation X” in partial fulfilment of the requirement for the Theme Paper during the Post Graduate Diploma
in Management.
This report has not been previously submitted as part of another degree or Diploma of another Business School
or University.
----------------------------------------------
Prof. J. B. Shetty
Indus Business Academy, Bengaluru, 560082, India
02 Apr. 18 iv
Table of Contents
Abstract .............................................................................................................................................................. 1
Introduction ........................................................................................................................................................ 2
Literature Review............................................................................................................................................... 3
Problem Statement ............................................................................................................................................. 8
Research Methodology ...................................................................................................................................... 9
Objective: “Difference between Consumer Behaviour of Millennials and Generation X” ... 9
Hypothesis: ............................................................................................................................. 9
Data Collection: ..................................................................................................................... 9
Primary Sources: .................................................................................................................... 9
Sampling Frame: .................................................................................................................. 10
Data Analysis: ...................................................................................................................... 10
Limitations: .......................................................................................................................... 10
Data Interpretation ........................................................................................................................................... 11
Hypothesis testing ............................................................................................................................................ 28
Conclusion & Recommendation ...................................................................................................................... 30
9.1 Conclusions .................................................................................................................... 30
9.2 Recommendations .......................................................................................................... 31
Bibliography .................................................................................................................................................... 33
Annexure .......................................................................................................................................................... 34
Questionnaire- ...................................................................................................................... 34
02 Apr. 18 v
Abstract
Every generation has its own characteristics. They have been affected by the changes of world and vice a versa
they changed the world. Soon a new generation will rule the world and we have to prepare for it. Huge amount
of information is now as distant as a cell phone. The old standards and ways should be redesigned and adapted
to the new demands. The pessimistic point of view towards the millennial generation evaluates them as lazy,
irresponsible, impatient, apathetic, selfish, disrespectful and even lost. But from the optimistic view they are
labelled as open minded, social, innovative, energetic, ambitious, confident, motivated and smart. There seems
to be one common idea; they love to buy.
Consumer behaviour is the main field and source for Customer Relationship Management
(CRM) programs. It is important to evaluate and understand the patterns and motives behind shopping attitude.
The main purpose of this research is to find out if the shopping patterns of the millennials are different from
other generations. The secondary purpose of the study is to analyse if brand loyalty of millennials is associated
with any other elements related to purchasing behaviour.
02 Apr. 18 1
Introduction
The changes in consumption expenditure can best be understood by taking a generation approach.
Generational determined lifestyles and social values, exercise as much influence on buying and purchasing
as more commonly understood demographic factors like income, education, and gender do, perhaps even
more. Different generations and demographic consumer groups are exposed to: (a) different social and
economic opportunities and barriers, (b) different types of technology activities, (c) different social
perceptions and different community norms, and (d) different life experiences and events (Hume, 2010).
Consumer motivation and purchase engagement often lie below the surface of the age: we could gain a deeper
understanding by considering generational cohorts.
Generational cohorts are comprised of people who are born during a particular period, and whose life
courses correspond to each other. Generational cohort marketing has become a useful tool in
segmenting markets since cohort members share similar values and generational cohorts have
different experiences, which influence their values, preferences and shopping behaviour (Parment,
2013). The buying power of the baby boomer generation has been a driven for the economy but this
group is aging. Although it is still a dominant market segment, there is another even larger
segment that spends a significant amount of consumer goods. This group called Generation Y or
Millennials has become a major force in the marketplace.
Generation Y is three times the more than Generation X and constitutes the largest market since baby boomers
(Belleau & Summers et al., 2007). Determining the specific factors that influence Millennials and their
purchasing attitudes and patterns has become an important focus of consumer research as their potential
spending power, the ability to be trendsetters, adoption to new products and potential for
becoming a lifetime customer (Martin & Bush, 2000).
02 Apr. 18 2
Literature Review
In ‘The Characterization of the Millennials and Their Buying Behaviour’ by the authors Anita Kolnhofer-
Derecskei, Regina Zs. Reiche and Agnes Szeghegyi. In this paper they present an integrative perspective on
Millennials' purchaser conduct. In the wake of applying some established models dependent on the customary
"data handling worldview", they presumed that just a structure that considers the effect of the way of life and
way of life encompassing Millennials is valuable to determine rules on the most proficient method to make
fruitful publicizing efforts went for this populace. The paper closes with certain proposals on the best way to
have the capacity to achieve this fragment of customers. In this paper they present an integrative perspective
on Millennials' purchaser conduct. In the wake of applying some established models dependent on the
customary "data handling worldview", they presumed that just a structure that considers the effect of the way
of life and way of life encompassing Millennials is valuable to determine rules on the most proficient method
to make fruitful publicizing efforts went for this populace. The paper closes with certain proposals on the best
way to have the capacity to achieve this fragment of customers.
The millennials' incursion into economic activity, as well as their tendency to consume and to
use the totality of their income in the purchase of the goods that define them or in experiences, makes the
economic sectors consider them an attractive segment, such as the tourism sector and therefore the continuous
studies about their buying behaviour with the aim of offering these experiences. According to Simonson et al
(2001), one of the most essential and influential areas within consumer buying behavior is the consumer
decision making process. In recent decades, during the initial stages of the conception of the consumer buying
behavior paradigm, various consumer decision making models were proposed. However the theories proposed
by the researchers were not specific and considered a overall view of the consumer decision making process.
Erasmusm, Boshoff and Rosseau (2001) indicated the importance and need for a specific, situation and product
– oriented model in the study of the purchasing behavior of the consumer. Moreover according to Wells (1993)
the consumer investigating decisions needed in the purchase of products such as car, house etc would directly
make an effective contribution to the consumer buying behavior knowledge. Therefore it is evident that an
exploratory research approach with the objective to study the consumer buying behavior would provide
opportunities to understand the complexity of specific decision making processes of the consumers.
It is evident from the past researches on consumer buying behavior that most of the real estate study is based
on neoclassical economic theory. The neoclassical theory states that the people make rational economic
decisions about renting or purchasing real estate as an attempt to maximize their utility. Moreover the various
theories of consumer buying behavior do not emphasize nor examine the human influences on the real estate
buyers. They concentrate more on production orientation rather than consumer behavior orientation towards
02 Apr. 18 3
the approach for marketing in the case of the consumer buying and decision – making process. The analysts
stratify real estate markets by property types that are defined by physical construction rather than consumer
benefits. Physical attributes value property more than the consumer perception factors such as space,
atmosphere etc. However in some cases such as retail tenants and other retail customers consider non –
financial and perceptual factors rather than the financial aspects in the buying process (Smith, Gararino and
Martini, 1992).
The study of the consumer decision making process is more important in the case of purchase of a high –
involvement and emotionally charged products such as real estate and house etc. Considering this type of
consumer decision making process, the objective of the research is threefold. Firstly to generate a conceptual
consumer decision making process model for purchase of house, secondly to study the various factors affecting
the consumer buying behavior process and finally to provide recommendations about the important factors
affecting consumer buying behavior.
In the literature, ‘Millennials: Who are they, how are they different, and why should we care? By the
author Tommy Nichols, he talked about the middle-class upbringing and rising levels of education have
resulted in a generation of workers who are ambitious about their life goals, have high expectations of their
employers, and are assertive in getting what they want. To that end, the traditional careers and psychological
contracts (i.e., reward for loyalty and hard work) employers are accustomed to have changed in a variety of
ways. People born roughly between 1980 and 2000 are commonly known as Millennial generation or
Generation Y, who in the modern day they are entering adulthood. Millennial young adults are becoming of
sharper social, academic and marketing focus due to the vastness of the generation, its growing impact on the
society and increasing buying power. Identifying general definitive features of the chosen generation was
made one of the thesis objectives. Past ages worked chiefly to protect solace and occupation with the objective of
improving life thriving. The attention was chiefly on family and giving an agreeable life to them. On the other side,
Millennials have been much slower to get hitched and start families. With 75% of this age are as yet single,
demographers and researchers have noticed that maybe different objectives and needs have out-sparkled the focal point
of more established ages on the family and home. Gen Y is the original that doesn't need and specialist figure to access
information, resulting in a unique and advanced group of workers. They are the main worldwide age associated by the
Internet, and online networking.
As there are two noteworthy kinds of business activities, known as 'Business to Client' or B2C, or to another
business, known as 'Business-to-Business' or B2B, there are two noteworthy showcasing divisions
individually. Acquiring conduct is ordinarily being alluded to B2C correspondence as is utilized in the present
proposition. In the present minute most established Millennials are around 36 years of age. Quality
observations strongly affect the promoting and quality administration. Understanding the impression of the
quality encourages an organization to decide the privilege technique to pull in more clients and keep up the
02 Apr. 18 4
old ones. SERVQUAL is generally utilized instrument to decide the nature of the administration. The primary
thought of the idea is to comprehend the proportion between apparent administration quality and the real
nature of the administration.
In the literature, ‘Consumer Behaviour of the Millennial Generation’ by the author Luís Simões. In this
paper they show that, over 65% of Millennials don’t even have a credit card because they fear getting into
debt they might not be able to pay off. Millennials are less likely to reach for plastic when purchasing, instead
saving up for purchases until they can pay with cash or debit. The "rebel" practices and dispositions of young
people have additionally progressed toward becoming wares that are caught, and revamped to them by smart
promoting: the development of "radical games" is a genuine case of how there is a covering between youth
culture and the advertised form of that culture (McNeal, 1999). While the past age individuals ("Generation
X"), are viewed as by and large as very techno-adroit, Millennials have been entwined with the Internet. The
Internet has a significant impact in their perspectives on correspondence, and they ended up acclimated with
the nonstop and prompt nature of the Web (Russell, 2002). Having utilized these advancements since
adolescence, a large portion of Millennials have turned out to be acclimated with relying upon their
workstations, mobile phones, texting, email, the web, and intelligent media in practically all parts of their
lives. This way of life impacts the examples of utilization that are run of the mill of this age. One of such
investigations of purchaser purchasing conduct has been directed by Acebron et al (2000). The point of the
examination was to break down the effect of past understanding on purchasing conduct of crisp nourishments,
especially mussels. In their examinations the creators utilized basic condition display so as to recognize the
connection between the propensities and past experience on the buyer purchasing choice. Their discoveries
demonstrate that individual propensities and past experience on of the customers directly affect the buyers'
buy choice in the case of buying crisp mussels. They additionally discovered that the picture of the item
crucially affects the acquiring choice of the customer and further prescribed that the item picture ought to
persistently be improved so as to support the buyers towards buying. It has been established that the consumer
buying behaviour is the outcome of the needs and wants of the consumer and they purchase to satisfy these
needs and wants. Although it sounds simple and clear, these needs can be various depending on the personal
factors such as age, psychology and personality. Also there are some other external factors which are broad
and beyond the control of the consumer. Situational factors affecting buyer conduct may incorporate area,
condition, timing and much climate conditions (Hoyer et al., 2012). So as to profit by situational factors real
retailers endeavor to develop condition and circumstances in stores that propel viewpoint clients to settle on
buy choice. Scope of accessible apparatuses to accomplish such a result incorporate playing loosening up
music in stores, delivering invigorating scents in stores and putting bread and milk items in general stores
towards the contrary end of stores to encourage development of clients all through the store to make extra
buys and so on.
02 Apr. 18 5
Individual components, then again, incorporate taste inclinations, individual monetary conditions and related
elements. The effect of individual factors on buyer basic leadership is normally tended to by organizations
amid market division, focusing on and situating rehearses by gathering people based on their own conditions
alongside other criteria, and creating items and administrations that suit these conditions in the best way.
A number of researches have been carried out by academics and scholars on identifying and analyzing those
factors affecting the consumers’ buying behaviour and as a result, various types of factors have been identified.
These factors have been classified into different types and categories in different ways by different authors.
For instance, Wiedermann et al (2007) classified them into internal and external factor. On the other hand,
Winer (2009) divided them into social, personal and psychological factors. Despite the fact that they have
been classified into different groups by different authors they are similar in scope and purpose (Rao, 2007).
There is a wide range of factors that can affect consumer behaviour in different ways. These factors are divided
by Hoyer et al. (2012) into four broad categories: situational, personal, social and cultural factors.
In the literature, “The X and Y Generations’ Characteristics Comparison” by the author Flor Madrigal
Moreno, according to him, half of millennials prefer to spend their money on experiences over material things
-- and they are willing to pay extra for it. In fact, many brands already recognize this and are turning to
experiential marketing to try to connect. Basically, this encompasses setting up opportunities for interaction,
both with the brand and with other consumers, often through special events. This can include things like
meetups in certain cities or virtual reality experiences. Millennials are an essential ingredient in the
development of e-commerce. Having grown up socializing and shopping online, the use of this e-commerce
generation will continue to grow along with their discretionary income. Although millennials do not like pop-
up publicity, the graphics are very effective at capturing their attention and will repeatedly visit a website that
has competitive pricing and good shipping rates (Smith,2011).
Millennials spend more, but have less loyalty to the brands than previous generations; the reasons for this low
loyalty may be because of the greater exposure of price promotions. They also look for products and brands
that match their personality, lifestyle, social and community values. They use brands to create images, to
represent their personality and communicate their values (Ayaydın & Baltaci, 2013). This generation group is
more active in integrating technologies into their daily lives for marketing purposes, using their mobile devices
and the traditional Internet means to connect to retailers or brands (Moore, 2012). Its purchasing power and
technological capacity have been crucial for minor online retailers who have benefited from this important
segment of consumers.
In the literature, “New consumer trends adoption by generations X and Y – comparative analysis.” By
the author Aleksandra Burgiel, Izabela Sowa, it is given that this general difference in trend adoption is a
result of highly diversified frequency of particular behaviours representing separate trends. Among the
02 Apr. 18 6
analysed behaviours, the most frequent ones are those representing showrooming, and even to a greater extent,
use of the collective intelligence. On an average, only 7.5% (between 3.7% and 10.5%) of respondents never
exhibited three of the four behaviours representing CI. As indicated by all business visionary respondents,
conventional advertising rehearses are obsolete and except if the promoted item or administration is intentional
and great there is a whole lot of nothing approach to advertise it. Industrialism age is over as per youthful
grown-ups in created nations and respondents of the exploration. Individuals come to getting it and changing
their way of life of devouring to the way of life of maintainability; new showcasing arrangements ought to be
found too. As indicated by barely any arrangements proposed by respondents, the rundown will be talked
about beneath with every arrangement depicted in detail. For consistency of the revealing, proposed
arrangements have been part into two sub-subjects: showcasing channels right off the bat, showcasing
instruments furthermore. Millennials use the Internet and are considered the first digital natives, this term was
first used by Marc Prensky in an essay entitled The Death of Command and Control in 2001, to describe
students who have grown up with technology and have an innate ability in language and the digital
environment (Ruiz, Casaseca, & Panera, 2013). The term millennium is used throughout the world; however,
birth dates cause a lot of debate worldwide since there are a variety of differences in the period when this
generation is statistically analysed.
02 Apr. 18 7
Problem Statement
The researchers have focused on factors that influences consumer buying as a whole but there has not been
adequate number of research on a particular basis like Generation. All the factors influence consumers buying
habits but to what extent Millennial behave differently than Generation X is a big question, and hence raises
a need to do research on this.
There are many variables that come into play, psychologically, demographically how both the generations are
likely to buy from which platform and what influences them.
From the literature review the gap that I found are like there is no proper research on how both the generations
react to various factors of consumer buying. There is a scope for marketers to cater to this segment of targeting
millennials or generation X as when they are targeting impulse buying customers.
02 Apr. 18 8
Research Methodology
Objective: “Difference between Consumer Behaviour of Millennials and Generation X”
Sub-objectives
 To understand which platform they likely to prefer for shopping.
 To understand what and who influences them to do shopping.
 To understand their consumer preferences.
 To evaluate their price sensitivity towards a product or a service.
Hypothesis:
H0: Online media is not the prominent mode for the shopping. (for generation X)
H1: Online media is the only prominent mode for the shopping. (for generation X)
H0: Millennial does not opt for the same brand repeatedly.
H1: Millennial do opt for the same brand repeatedly.
Data Collection:
The data collected through primary and secondary sources. The primary data collected with the help of
questionnaire among working class people as well as students. The secondary data collected through journals,
magazines, published research reports, various websites.
Primary Sources:
The tool used to collect primary data is questionnaire. The respondent were people who were either working
or studying but into buying habits or taking decisions themselves.
02 Apr. 18 9
Sampling Frame:
1. Sampling Size: 86
2. Sampling Technique: Convenience sampling.
3. Sampling units: Impulse buyers or decision takers
4. Sample Frame: Bangalore
5. Data collection method: Survey and Google doc.
Data Analysis:
The collected variables are all categorical variables. The primary data are interpreted through bar, chart pie
charts which were made using MS Excel.
Limitations:
 The survey conducted in Bangalore mainly
 People reluctant to express their income level.
02 Apr. 18 10
Data Interpretation
Analysis 1:
In which generation do they come?
Millennial V/s Generation X
29%
Millennials
71% Gen X
Interpretation –
- In the above pie charts we can compare the consumer buying behaviour of both the generations, they
are- Millennial and Generation X.
- In this survey, 86 number of respondents were surveyed.
- Among that data, there are 29% were Generation X people.
- And rest 71% were Millennials.
02 Apr. 18 11
Analysis 2:
Annual Income
Annual Income Millennial Generation X
None 40 0
Up to 2,50,000 16 5
2,50,000 to 5,00,000 7 5
5,00,000 to 7,50,000 2 8
7,50,000 to 10,00,000 2 4
Annual Income
18%
23%
3%3%
10% None
Up to 2,50,000
Millennial 2,50,000 to 5,00,000
24% 60% 5,00,000 to 7,50,000
Generation X 7,50,000 to 10,00,000
23%
36%
Interpretations-
- Most of the millennial are students so they do not have any income source, although 1/4 th of the
millennial are having income up to ₹2,50,000.
- Rather Generation X people have higher income level. More than 50% of generation X people have
income more than ₹5,00,000, in which 2/3rd of them have income more than ₹7,50,000.
- 3% of the millennial have income more than ₹7,50,000 as they all are engaged in business or they have
jobs. And 10% have more than ₹5,00,000.
02 Apr. 18 12
Analysis 3:
What is their occupation:

Millennial Generation X
Student Student
49 3
Job Job
6 6
Business Business
6 11
Homemaker Homemaker
1 5
MILLENNIAL GENERATION X
Student Job Business Homemaker Student Job Business Homemaker
1%
10% 12%
20%
10%
24%
79%
44%
Interpretation-
 From the surveyed data, in this generation, millennial (1990-2000) there are majority of students with
71%.
 Even there are 10% millennial who all are entrepreneur. With increase in entrepreneurship we can
conclude that the upcoming generation will be more potential.
 10% Millennial are employed in service sector and rest 1% are home maker.
 In generation X, 44% are engaged in their business whereas 24% are engaged in doing job.
 3% people are even pursuing their education and rest 20% women are home maker.
02 Apr. 18 13
Analysis 4:
How often do they purchase/buy?
Frequently 18 Frequently 8
Occasionally 32 Occasionally 9
rarely 9 rarely 7
very rarely 1 very rarely 2
MILLENNIALS GENERATION X
Frequently occassionaly rarely very rarely Frequently occassionaly rarely very rarely
2% 8%
15%
30% 31%
27%
53% 34%
Interpretation –
- Among the millennials, 30% of them are the frequent buyers. They even don’t think before buying
anything as they are potential enough.
- 30% of them are occasional buyers, they purchase products when they want.
- 15% millennial get them when there is reason for it and rest 2% of them are not so materialistic.
- Among generation X, there are 31% who purchases frequently, most of them are women.
- 34% of them purchases ocassionaly.
- And almost 1/3rd of them i.e., 35% are infrequent buyers, as these people are down to earth. They
purchase when there is extreme need of something.
02 Apr. 18 14
Analysis 5:
Which platform you mostly prefer for shopping?
Column1 MILLENNIAL GENERATION X

Showroom/ Retail 10 10
E-commerce 14 4
Both 35 13
Chart Title
17%
37%
Showroom
48% E commerce
59% 24%
Both
Generation X
15%
Interpretation-
- From the above graph we can interpret that millennial is technology freak generation, they frequent
purchase from e-shopping sites, whereas Generation X rarely purchase from e-commerce sites as they
have trust issues.
- Even millennials are the ones who purchases more from showrooms as they are attracting towards the
marketing strategies of the brands or companies whereas 37% are always trust on their 6 senses for
purchasing.
- There are 59% of millennials who uses both the platform and 48% of Generation X people who uses
both the platforms.
02 Apr. 18 15
Analysis 6:
When do they prefer to shop?
Weekdays 7 6
Weekends 20 17
Anytime 32 4
When do they prefer to shop?
22%
34%
WEEKENDS
Generation X WEEKDAYS
54%
ANYTIME
59%
19%
12%
Millennial
Interpretation –
- More number of generation X people as well as Millennial who purchases anytime which includes
more number of frequent buyers.
As generation X people are engaged in business or service sector they prefer to shop during weekends.
- Millennials generally buy whenever they prefer to or whenever they like something.
02 Apr. 18 16
Analysis 7:
Are they sensitive to the price of the product or service?

COMMENT MILLENNIALS GENERATION X
Yes 53 20
No 7 6
12% 23%
Yes Yes
88% No 77% No
Interpretation-
- Almost 88% of the millennial are sensitive to price as maximum of them are students, as they have no
or less income.
- Whereas 12% are not sensitive as they are the entrapreneur or they have potential to spend.
- Almost 1/4th of the generation X people are not sensitive towards price as they earn well
- And 3/4th of them are sensitive towards pricing of the product or service as they believe in “value for
money”.
02 Apr. 18 17
Analysis 8:
While purchasing offline, what are the factors which influences them to buy product or service?
Factors Millennials Generation X
Rating 20 6
Reviews 17 10
Word of mouth 6 5
Advertisement 12 7
Delivery time 13 7
All of these 28 8
Rating Rating
21% Reviews 19% 14% Reviews
29%
Word of mouth 16% 23% Word of mouth
18%
14% Advertisement Advertisement
12% 6% 16% 12%
Delivery time Delivery time
All of these All of these
Interpretation-
- Millennial is the generation who looks for the ratings and review of the product or service when they
use online platform for shopping.
- This generation less prefer for ‘word of mouth’ factor because they prefer to buy what they like
spontaneously.
- Generation X people almost overlook all the factors equally, which are rating, review, word of mouth,
Advertisement, Delivery time. These all factors play a vital role in their buying behaviour.
02 Apr. 18 18
Analysis 9:
While purchasing online, what are the factors which influences them to opt for the product or the
service?
Factors Millennials Generation X
Discounts/offers 26 7
Advertisement 11 4
Convenience 26 9
Brand Ambassador 10 1
All of these 21 11
Discounts/offers Discounts/offers
22% 28% 22%
Advertisement 34% Advertisement
10% 13%
12% Convenience 3% Convenience
28% 28%
Brand Ambassdor Brand Ambassdor
All of these All of these
Interpretation-
- Here for offline platform, discount plays a vital role for Millennial and Generation X as well. This is
why brands often endorse both the generation with discounts and other offers.
- One more interesting thing also can be seen here i.e., convenience for them plays an important factor
in influencing them. This is why most of the brands build chain of multiple showrooms.
- Here it can be seen that almost each of the factors are important to attract both the generations to buy
their product or service.
02 Apr. 18 19
Analysis 10:
With whose reference they like to purchase/shop?
Reference Millennial Generation X

Own choice 31 13
Parents 11 0
Friends/cousins 19 10
Husband/Wife 0 2
Own choice 31 13
Millennials Generation X
0% 8%
31% Own choice Own choice
51% Parents 40% 52% Parents
18% Friends/cousins Friends/cousins

0%
Husband/Wife Husband/Wife
Interpretations-
- Half of the millennials as well as generation X prefer to shop products or other services with their own
choice. They get knowledge from everywhere and then take decision.
- 18% of the millennial take help of their parent in making consumer buying decision.
- Friends/cousins are mostly of same age group, they even play an important role in making consumer
buying decisions. 31% for the millennial and surprisingly 40% for the generation X.
- One more irony is this, for generation X, their spouse plays least important in making buying decisions.
02 Apr. 18 20
Analysis 11:
Do they stick to a single brand?
Comment Millennials Generation X
Yes 14 18
No 22 10
Depends 12 10
25% 29% 26%

Yes 48% Yes
No No
26%
46% Maybe Maybe
Interpretation-
- 29% millennials prefer same brand of product or service, as they get stick to it. Either they are happy
with overall factors which makes their buying decision.
- 46% which is almost half of the millennial generation don’t prefer same brand over and over. As they
want to try new products in the market. And 1/4th of millennials says it depends on various factors.
- ½ of the generation X people stick to same brand because they are happy with overall factors which
makes their buying decision.
- And ½ of them don’t stick, as they look of uniqueness of the product or service.
02 Apr. 18 21
Analysis 12:
Do they face any difficulty to adapt new brand?
Ratings Millennial Generation X

Yes
8 3
No
32 12
Depends
21 10
13% 12%
34% Yes Yes

40%
No No
Maybe Maybe
48%
53%
Interpretation-
- ½ of the millennial says that it depends on various factors such as new product development,
uniqueness, reasonable pricing etc.
- 34% says that they don’t feel any difficulty in adapting anything new as they are not much sensitive
to pricing, whereas 13% says they feel difficulty as they get stick to same brand.
- 40% of the Generation X says that it depends on various factors such as new product development,
uniqueness, reasonable pricing etc.
- While 48% says that they don’t feel any difficulty in adapting anything new as they are not much
sensitive and they love to trying new things, whereas 12% feels difficulty.
02 Apr. 18 22
Analysis 13:
Rank the factors that influence your preference for same brand repeatedly. (Service)
Not likely 0 1
Least likely 7 0
Neutral 18 9
Likely 49 11
Very likely 9 5
11%0%8% Not likely Not likely

22% 19% 4%
0%
Least likely 35% Least likely
Neutral Neutral
59% 42%
Likely Likely
Very likely Very likely
Interpretation-
- Here we can see that service which companies give to their customer plays an important factor for both
of the generations. This is why companies are building relations effectively to retain more and more
customers. Innovating their service with the technologies as well.
- Whereas for 8% of the millennial service don’t play much important role as they believe in other
factors.
02 Apr. 18 23
Analysis 14:
Rank the factors that influence your preference for same brand repeatedly. (Quality)
Not likely 0 0
Least likely 3 0
Neutral 12 3
Likely 49 23
Very likely 18 8
0% 0%9%
22% 4% 14%
Not likely Not likely
23%
Least likely Least likely
Neutral Neutral
60% Likely
68%
Likely
Interpretation-
- Quality of the product or service which companies provide is major factor in acquiring customers. As
in India, people believe in long lasting use of any of the product or service. They believe in ‘value for
money’. This is why almost 85-90 % of millennial and generation X people are likely to purchase
product or service for quality which they provide.
- 14% of millennial are ‘neutral’ for the quality factor because they said they believe in ‘use and throw’.
02 Apr. 18 24
Analysis 15:
Rank the factors that influence your preference for same brand repeatedly. (Price)
Not likely 0 0
Least likely 2 2
Neutral 16 4
Likely 26 10
Very likely 18 8
0%
3% 0%8%
29% Not likely Not likely
26% 33% 17%
Least likely Least likely
Neutral Neutral
42% Likely 42% Likely

Interpretation-
- 42% from each of the generations are likely to buy product or service for the ‘price’ factor. As they
believe in ‘value for money’. They also have moderate income, due to this they are much sensitive to
price.
- 33% from generation X and 29% from millennial are very much sensitive to price.
- 26% from generation X and 17% from millennial are very much neutral to pricing of the product or
service.
02 Apr. 18 25
Analysis 16:
Rank the factors that influence your preference for same brand repeatedly. (Status Symbol)
Not likely 1 1
Least likely 4 1
Neutral 14 7
Likely 26 8
Very likely 14 7
1%7% Not likely 4%4% Not likely

24% 29%
24% Least likely 29% Least likely
Neutral Neutral
Interpretation-
- Almost 60% of the millennial of millennials tend to gravitate toward purchases that are an expression
of their personality -- the brand must speak to them at this level and make them feel good. Unlike baby
boomers and Gen Xers, who consume based on quantity believe that status symbol which they retain
from the product or service is much important. As millennial are materialistic by nature.
- 8% from each of the generation says that they don’t care about status symbol as they buy what they
like and these are people who can adapt new brands easily.
- 24% from millennial and 29% of the generation X peoply are neutral about their status symbol.
02 Apr. 18 26
Analysis 17:
Rank the factors that influence your preference for same brand repeatedly. (Brand Value)
Not likely 0 0
Least likely 4 1
Neutral 20 5
Likely 20 12
Very likely 14 6
0%7% 0%
4%
24% Not likely 25% 21% Not likely
35% Least likely Least likely

Neutral Neutral
Interpretation-
- 58% of millennial and almost 3/4th of the generation X believes in brand value. This is why companies
try to create brand value by providing high end services to their customers.
- 1/3rd of the millennial are neutral towards the brand value.
- 7% and 4% of the millennial and generation X are least likely to turn up towards brand value which
they get respectively.
02 Apr. 18 27
Hypothesis testing
Test 1- Correlation
H0: Online medium is not the prominent mode for the shopping. (for generation X)
H1: Online medium is the prominent mode for the shopping. (for generation X)
Interpretation:
The above correlation testing among the two variables shows very poor correlation so we cannot accept the
H1. We will accept H0 that is “Online medium is not the prominent mode for the shopping. (for generation
X)”
02 Apr. 18 28
Test 2- Chi Square
H0: Millennial does not opt for the same brand repeatedly.
H1: Millennial do opt for the same brand repeatedly.
Interpretation:
The above Chi Square test shows that the significance level is exceeding beyond 5% (0.05) so we cannot
accept H1. Therefore, we will accept H0 i.e., Millennial does not opt for the same brand repeatedly.
02 Apr. 18 29
Conclusion & Recommendation
9.1 Conclusions:
1. From this paper’s survey and data interpretation few things are pretty clear and hence would like to conclude
on few things-
2. There is a difference in the way millennial take shopping and generation X take shopping.
3. Millennial have significantly shown more interest towards spending more time than generation X while
shopping.
4. They may have different opinions while making consumer buying decisions. Social media communication
was a decisive factor behind Millennials’ and Gen Xers’ choice of food products and tourist services. When
making purchasing decisions, respondents relied on the online information and comments from other people,
as well as on those posted on the official pages of companies
5. Visual display of a store works more or less equally for both the genders according to our findings.
6. They also based their buying decisions on the characteristics of products and services, always aiming to
keep a beast of the latest usage possibilities and obtaining knowledge of any criticisms or possible ﬂaws.
7. Millennial expected the online information to be more useful in making a purchasing decision, while adults
relied mostly on the objective data obtained from sources as credible as possible.
8. Generation X are more influenced by friends and reference groups, basically due to the friends or outer
circle that men have.
9. Millennial are more driven by affordability of products and prices as well as compared to men.
10. According to survey, 50% of the and generation X people says that it depends on various factors such as
new product development, uniqueness, reasonable pricing etc., to adapt for new brand.
These are some of the conclusions that I have interpreted from the analysis of this paper.
02 Apr. 18 30
9.2 Recommendations
Today in retail world it becomes important to give important to each segment of customers. To get better
results and boost up sales marketers can target both millennial and generation X accordingly depending upon
the kind of interest that they have.
1. Advertising can take advantage of the spirit of volunteerism typically found in Millennials: campaigns
can be built upon the urge that young people manifest in making direct and meaningful connections
with the surrounding community.
2. Millennials are much more prone to be influenced by peer-to-peer networks than by “push
advertising”: this generation has grown immersed in advertisements, and use their nearer social
references as a guide on what products are really important to them.
3. Young people must be treated with respect: they appreciate smart and unusual marketing campaigns.
They have to see a true benefit of purchasing the product before spending the money.
4. Although Millennials are described by older people as being rather “conservative”, in relation to how
those people behaved we they were young, it is very important for an advertiser to understand that just
because Millennials question less their parents values than previous generation, that doesn’t mean that
they are not “rebellious” as consumers: young people seek novelty, and they are less tied to the past.
They are also rebellious, but in their unique way.
5. Though such deep detailed study of the millennial generation inner divides and sub-groups would be
very beneficial for efficient marketing activities planning process and application of marketing tools
and channels, the focus of the present study stays fully holistic of Millennial generation perception,
leaving out meticulous examination
6. Online advertisements are a must for any company and brand, according to the research findings.
Apparently, it is the first place people look your business up on the Internet. Using hashtags is another
must in a modern marketing, which was necessary mentioned by all of the respondents. This
7. This plays an important role for customers to review the products in other customers’ use, to evaluate
alternatives, to get connected to the brand community and to share their experience as well. Hashtags
may be used on all web-based platforms these days and are a very powerful and free tool of marketing
communication.
02 Apr. 18 31
8. One of the respondent said, “It makes it easier to make friends, feels like these new people all have
particular things in common with me besides the brand attachment, we have similar taste, therefore we
have more chances of becoming friends”, which means ‘similar values and opinions’ create added
value to the Generation Y customers.
9. Every generation relates to brands differently, and they have varying objectives when it comes to the
shopping and buying experience. But despite their differences, every generation said payment security
(89 percent), easy brand interactions (76 percent), and advertisement (71 percent) are the most
important factors when choosing where to shop. And no matter the generation, great customer service
is always the most important thing.
02 Apr. 18 32
Bibliography
 https://news.gallup.com/poll/123839/consumers-spend-more-weekends-payday-weeks.aspx
 http://www.wmfc.org/uploads/GenerationalDifferencesChart.pdf
 https://www.slideshare.net/thesound/genx-vs-millennials-vs-gen-edge
 https://pdfs.semanticscholar.org/ee84/75316bb1c31b1ac09615546b3f12ef669af8.pdf
 https://www.researchgate.net/publication/298506301_Millennial_Gen_Y_Consumer_Behavior_Their_Shoppi
ng_Preferences_and_Perceptual_Maps_Associated_With_Brand_Loyalty
 https://www.scribd.com/doc/36262540/Consumer-Behavior-of-Generation-X
 https://www.alexisabramson.com/millennial-consumer-behavior/
 https://www.forbes.com/sites/forbesagencycouncil/2018/06/04/understanding-the-research-on-millennial-
shopping-behaviors/
 https://go.euromonitor.com/free-report-millennials-consumer-behaviour.html
 https://www.forbes.com/sites/yec/2018/05/17/generation-face-off-comparing-gen-x-y-and-z-shopping-
behaviors/#62203f28631d
02 Apr. 18 33
Annexure
Questionnaire-
1. In which generation do you fall?

 Millennials (1990-2000)
 Generation-X (1980-1990)
2. Your Gender-
 Male
 Female
3. What is your occupation?

 Student
 Self Employed
 Service
 Home Maker
4. What is your annual Income?

 None
 Up to 2,50,000
 2,50,000 to 5,00,000
 5,00,000 to 7,50,000
 7,50,000 to 10,00,000
02 Apr. 18 34
5. How often do you shop?

 Frequently
 Occasionally
 Rarely
 Very Rarely
6. Are you price sensitive?

 Yes
 No
7. Which platform you mostly prefer for shopping? *

 E-commerce
 Showrooms
 Both
8. When do you prefer to shop?

 Weekdays
 Weekends
 Anytime
9. While purchasing online, what are the factors you opt for?
 Rating
 Reviews
 Word of mouth
 Advertisement
 Delivery time
 All of the Above
10. What influences you to purchase on showroom/ offline basis?

 Discounts/offers
02 Apr. 18 35
 Advertisement
 Convenience
 Brand Ambassadors
 All of these
11. With whose reference you prefer to shop? *

 Own choice
 Parents
 Friends/Cousins
 Wife
 Other: ____________________________________________
12. Do you mostly stick to the same brand?

 Yes
 No
 Maybe
13. How likely are you to recommend particular product or service to others?
Least likely __________________________________________________ most likely
14. Do you face any difficulty to adapt new brand?

 Yes
 No
 Depends
02 Apr. 18 36
15. Rank the factors that influence your preference for same brand repeatedly?
Least likely Very likely
Service 1 2 3 4 5
Quality 1 2 3 4 5
Price 1 2 3 4 5
Status symbol 1 2 3 4 5
16. Any Suggestions:
____________________________________________________________________________________
____________________________________________________________________________________
________________
02 Apr. 18 37

Jai MR

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INDUS BUSINESS ACADEMY

LAKSHMIPURA, THATAGUNI POST

KANAKAPURA MAIN ROAD

BENGALURU, 560082, INDIA

“Difference between Consumer Behaviour of Millennials and Generation X”

A Project Report for the partial fulfilment of the requirement for

Signature of Project Supervisor:

Name of the Student: JAIVARDHAN RATHOD

Registration No.: FPB1820/071

another degree or diploma of any other institute or university.

Dr. Subhash Sharma

platform to exposure and learn.

of Millennials and Generation X”.

Indus Business Academy

This is to certify that Mr JAIVARDHAN RATHOD of INDUS BUSINESS ACADEMY, Bengaluru,

Indus Business Academy, Bengaluru, 560082, India

Problem Statement ............................................................................................................................................. 8

Research Methodology ...................................................................................................................................... 9

Objective: “Difference between Consumer Behaviour of Millennials and Generation X” ... 9

Data Collection: ..................................................................................................................... 9

Primary Sources: .................................................................................................................... 9

Sampling Frame: .................................................................................................................. 10

Data Analysis: ...................................................................................................................... 10

Data Interpretation ........................................................................................................................................... 11

Hypothesis testing ............................................................................................................................................ 28

Conclusion & Recommendation ...................................................................................................................... 30

9.1 Conclusions .................................................................................................................... 30

9.2 Recommendations .......................................................................................................... 31

Objective: “Difference between Consumer Behaviour of Millennials and Generation X”

 To understand which platform they likely to prefer for shopping.

 To understand what and who influences them to do shopping.

 To understand their consumer preferences.

 To evaluate their price sensitivity towards a product or a service.

H1: Millennial do opt for the same brand repeatedly.

2. Sampling Technique: Convenience sampling.

3. Sampling units: Impulse buyers or decision takers

4. Sample Frame: Bangalore

5. Data collection method: Survey and Google doc.

charts which were made using MS Excel.

In which generation do they come?

Millennial V/s Generation X

Annual Income Millennial Generation X

What is their occupation:

How often do they purchase/buy?

Which platform you mostly prefer for shopping?

Column1 MILLENNIAL GENERATION X

When do they prefer to shop?

When do they prefer to shop?

more number of frequent buyers.

Are they sensitive to the price of the product or service?

Factors Millennials Generation X

use online platform for shopping.

Factors Millennials Generation X

their product or service.

With whose reference they like to purchase/shop?

Reference Millennial Generation X

18% Friends/cousins Friends/cousins

Do they stick to a single brand?

Comment Millennials Generation X

25% 29% 26%

with overall factors which makes their buying decision.

makes their buying decision.

Do they face any difficulty to adapt new brand?

Ratings Millennial Generation X