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Social Media Perceptions and Usage by Generation Y and Relevant Marketing Implications Irene J University of Dayton eCommons Management and Marketing Faculty Publications Department of Management and Marketing 2010 Social Media Perceptions and Usage by Generation Y and Relevant Marketing Implications Irene J. Dickey University of Dayton, [email protected] William F. Lewis University of Dayton, [email protected] Follow this and additional works at: http://ecommons.udayton.edu/mgt_fac_pub Part of the Advertising and Promotion Management Commons, Business and Corporate Communications Commons, Communication Technology and New Media Commons, Marketing Commons, Public Relations and Advertising Commons, Sales and Merchandising Commons, and the Social Media Commons eCommons Citation Dickey, Irene J. and Lewis, William F., "Social Media Perceptions and Usage by Generation Y and Relevant Marketing Implications" (2010). Management and Marketing Faculty Publications. Paper 33. http://ecommons.udayton.edu/mgt_fac_pub/33 This Article is brought to you for free and open access by the Department of Management and Marketing at eCommons. It has been accepted for inclusion in Management and Marketing Faculty Publications by an authorized administrator of eCommons. For more information, please contact [email protected], [email protected]. Social Media Perceptions and Usage by Generation Y and Relevant Marketing Implications Irene J. Dickey, University of Dayton William F. Lewis, University of Dayton One of the most common ways in which Internet users theme of this research, this research will also reveal other connect and network with each other is through "social media." behaviors. Social media is the content that is provided and maintained by the Social media, also called consumer generated media, or Web user on a Web site. It is clear that social media such as Facebook 2.0, refers to media that has been created and driven by the and LinkedIn are becoming increasingly pervasive in the lives of consumer. The primary benefit of social networking is that it students, professionals and consumers. A literature review, as satisfies some consumers’ need for a sense of community (Dickey, well as the results from our survey reveals that not only have Lewis, Siemens 2008). These online communities are places social networks evolved rapidly during the last few years, but so where consumers can ask for or give advice and insights. Such too have consumers’ behaviors. Subsequently, marketing conversations can often revolve around a company or product; a strategies and tactics, and the potential for practitioners to fact that marketing practitioners need to recognize. Consumers understand and exploit such knowledge may be influenced by make recommendations about brands to others. In addition, they these findings. This research seeks to better understand the frequently and willingly associate themselves with particular current perceptions and use of social media members of brands; and marketers need to be aware of this phenomenon Generation Y; and to consider the implications for marketing (Klaassen 2007). Hart and Blackshaw (2006) found that practitioners. consumers will go to social networking sites (SNS) for product information if they believe that they will learn from the product or service experiences of other consumers like themselves. The main Introduction advantage of social networking sites to consumers is that they are It is well-known that marketing practitioners have developed easy to find and readily available. If the foregoing is true, then the generational marketing programs for each generational cohort odds that consumers will actually post their own product since members of each generation have distinctive communication experiences on these sites are increased. Social media has become characteristics and behaviors. Marketers that do not try to the new vehicle for word-of-mouth advertising; and more. In the understand these distinctions and the particular needs and wants of Burson-Marsteller 2010 Social Media Check-up Report, it was this group will not be successful with them. Generation Y grew found that, between 2007 and 2009, social networking marketing up with the computer as an appliance and have mastered its use for spending increased 165.8%, from $884 million to $2.34 billion. many aspects of their lives, particularly communication. The total amount of time spent at social networking sites has Communication is a key reason for the use of social networks. increased 210% in the last year; with the average person spending Hart and Blackshaw (2006), explain that at the core of social 143% more time on these sites than they did a year ago (Burson- networking sites are virtual communities, where, as in physical Marsteller 2010). As a result, people are creating more content. communities, members come to know and trust each other. While This growing phenomenon is generating more opportunities for Baby Boomers and Generation X embraced e-mail, Generation Y marketers to have a presence in these social media spaces. prefers social media. When marketers try to connect with Frazier’s (2010) research found that social networks such as Generation Y consumers, “old school” e-mails do not work very Facebook and Twitter are revolutionizing the way companies effectively. A study by Participatory Marketing Network (PMN), market products. found that only 28% of those between ages 18 and 24 indicated In order to successfully connect with Generation Y it is that the email they are currently receiving from companies is imperative to first understand their demographics. Members of relevant to them. They prefer more innovative e-mails over which this large generation (75 million) are often referred to as the they have more control (Pekala 2009). Nearly a third (32%) “Millennials” or as the “Echo Boom” generation. They were born, indicated that they would like to share promotional e-mail offers roughly, between 1977 and 2000 (Eisenberg 2010, Simons 2010). with members inside a social network and open e-mails from Members of this generation range in age from 10 to 33 years of others. What Gen Y consumers prefer is an open social media age. As with any generation, members of this generation have format to traditional e-mails. The PMN study reported that about been shaped by various current events such as advances in half (51%) indicated that they would join a social network technology, and other significant moments of their relatively brief dedicated to managing brand interactions (Pekala 2009). Another lifespan. Generation Y, specifically those in the United States, are PMN study found that 99% of Generation Y has an active profile often seen as being shaped or influenced by events such as school on at least one social networking site, while only 22% are using shootings, the Oklahoma City bombing, September 11, terrorists’ Twitter (Penna 2009). Not all social networking sites are equally activities, and the Iraq War. They have been exposed to AIDS, valued by Generation Y. While communication is the primary drugs, rapidly improving technology, reality TV, and MTV behavior of Generation Y on social networks, and is a major (Barnes 2009). Members of Generation Y were born into a period 191 of rapid globalization and significant advances in technology request to take the survey. Respondents were also asked to “…where many of the limitations of time and space have been forward the link electronically to other friends, coworkers and overcome by further advances in information and communication classmates in Generation Y. A separate email was sent to all technology” (Savage 2006). Some of the most significant changes registered students with marketing majors and minors at the have been the advent of the personal computer, the cell phone, the university asking for their participation and response. In terms of Internet, and other digital technologies” (Tapscott 1998). They the social media component, the survey link was posted once a have been conditioned to accept and utilize the latest technology week for three weeks on personal social media pages. This survey to multi-task, and to be constantly entertained. In fact, “…with methodology produced usable results. However, it must be TVs, computers, MP3 players, cell phones and instant messaging recognized that the survey was not a probabilistic sample, and as an integral part of their lives, the Millennials have become therefore, the statistical results cannot be projected to the entire masters of multitasking” (McAlister 2010). This generation was Generation Y population. born into a period of general economic growth and expanding prosperity. For the most part their parents have provided for them, and seemingly, have given them much of what they want in life. Respondent Demographics Consequently, Generation Yers may become easily bored or The survey produced 416 usable responses. Responses were frustrated with outdated technologies and out-of-date “know-how” received from 24 U.S. colleges and universities, and two by older generations. They are interested in instant gratification international colleges and universities. Respondents’ and prefer to move quickly from one task to another (Barnes demographics: 41% male, 59% female, 5% freshmen, 13% 2009). As a result, marketers must keep up with technological sophomores, 20% juniors, 45% seniors, 6% graduate students, and advances valued and used by this generation in order to effectively 11% other (did not attend, or graduate from college). communicate and connect with them. Despite how marketers may feel about Generation Y and Social Networking Site
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