Originally published in the NEPA Business Journal by Dave Gardener on June 5, 2019.
Abhijit Roy, DBA, professor of management, marketing and entrepreneurship at the University of Scranton, explained that big bucks are at stake in the drive to sell to millennials. According to data collected by the renowned Pew Research Center, millennials have now become the largest buying group in the United States, with about 73 million millennials now present, and the number increasing to 80 million by 2050.
According to Roy, to understand the spending of the generation, you have to realize that most of them with a post-high school education are carrying heavy educational debt. This is creating consequences within their purchasing abilities and delaying the acquisition of big “stuff” such as a home purchase or getting married.
“In addition, overall incomes have not been rising,” said Roy. “Something with this pattern has to give within a decade.”
Roy cited how various studies have looked at the behaviors of the millennials, and established that as a group they are less confident then their generational predecessors and possess lower self-esteem. In addition, as part of America’s “trophy generation” they may have unrealistic expectations about their ability to accomplish, initially expect an “A” on every scholastic exam, and wind up with a wake-up call when they find collegiate success takes a focused effort.
The digital economy is also embedded within their blood, and the millennials therefore exhibit strong spending on a regular basis for high-tech products.
“Almost every year there’s a new wave of tech products that they have to have, and they will spend with consistency for these,” said Roy.
According to Roy, when it comes to hard-core recreational spending, it must be understood that personal depression rates within the millennials are relatively high. He believes many of their buying habits have to do with attempts to alleviate this depression, and they will use their digital presence to project a positive face to peers.
“We can also expect that the millennials will evolve as they mature and the world changes around them,” said Roy. “They will eventually buy homes, but before this can happen there generally has to be a debt pay-down.”
Read the full article on the NEPA Business Journal site.
Learn more about the DBA program at The University of Scranton.
Learn more about Abhijit Roy, DBA.