TITLE:
Consumption Patterns of the Millenial Generational Cohort
AUTHORS:
Rebecca Abraham, Charles Harrington
KEYWORDS:
Generation Y, Consumption Patterns, Millennial Generation, Utilitarian, Social Referent
JOURNAL NAME:
Modern Economy,
Vol.6 No.1,
January
13,
2015
ABSTRACT: This study constructs a
consumption profile for the Generation Y age cohort using responses to the
Consumer Expenditure Survey furnished by the Bureau of Labor Statistics from
the financial crisis period. This generation was theorized to employ both economic
reasons, i.e. preferences for inexpensive
products, and the desire to comply with the values and normative beliefs of
social referent groups. For the rent or buy a home decision, the variability of
income, risk of foreclosure and loss of mobility governed the consumption
choice. For the purchase a new car or a used car decision, economic
considerations dominated with variability of income being the sole explanatory
variable for the choice. Family size and the need to conform to group norms
explained the choice of bringing food from home to the workplace. Socialization
opportunities and group identification explained the decision to eat lunch away
from the workplace. Family size and desire for group conformity explained
vacation expenditure as they did for bringing food from home. For both furniture
and large appliances and small appliances, the need to conform to group norms
was significant suggesting that they may be the subject of social interactions.
Given that investment in a private education is often considered a luxury, the
proportion of the family budget allocated to this expense was significant along
with the expected need for conformity with group values.