Understanding Generation X ... Boom or bust introduction.

The central tenet of marketing is the exchange relationship. Simply put, marketers provide benefits, outcomes, or solutions sought by consumers. In the interest of a targeted marketing effort, marketers attempt to profile each segment. The diversity of the American marketplace continues to undergo

   They have trouble making decisions.
   They would rather hike the
   Himalayas than climb a corporate
   ladder. They have few heroes, no
   anthems, no style to call their own.
   They crave entertainment, but their
   attention span is as short as one zap
   on the TV dial. They hate yuppies,
   hippies, and druggies. They postpone
   marriage because they dread divorce.
   They sneer at Range Rovers,
   Rolexes, and red suspenders. Things
   they hold dear are family life, local
   activism, national parks, penny loafers
   and mountain bikes. They possess
   only a hazy sense of their own
   identity but a monumental preoccupation
   with all the problems the preceding
   generation will leave for
   them to fix.

The above description appeared in a Time magazine cover story outlining the coining of age of Generation X (24). This group has also been referred to as the Baby Busters, Twenty-somethings, YIFFIES (young individualistic freedom-minded few), the Brash Pack, FLYERS (fun-loving youth en route to success), the NIKES (no-income kids with education), the indifferent generation, and the invisible generation (16).

A marketer's relative success or failure in dealing with any particular segment is a function of achieving an understanding of the uniqueness of that particular consumer group and proper manipulation of the marketing mix. The purpose of this manuscript is to improve our collective understanding of Generation X as a market segment. All generations are shaped by their experiences. The experiences of Generation X are presented first. Next, some of the popular myths surrounding this group are examined. Finally, a list of "what-to-do's" and "what-not-to-do's" is advanced to assist in the marketing to Generation X consumers.

Just What Is Generation X?

Coming on the heels of the well-known Baby Boomers (those born between 1946-1964), Generation X represents over 50 million people born between 1965 and 1978 (7). Some demographers contend this period should be expanded to include 1961-1981 in order to encompass those with similar life experiences (22). When using this classification system, we realize that X'ers outnumber the Baby Boomers, and have done so since 1980 (17).

Generation X, borrowing the name from the title of the 1991 Douglas Coupland novel (2), has been witness to, a participant in, and the result of, much change within American society. X'ers grew up during the era of the pill and legalized abortion, liberalized divorce, and the influx of women into the labor force. Further, they came of age during a period of increasing diversity and the blurring of gender roles (4).

This generation, the thirteenth since the founding of the republic (15), is the first one to grow up with VCR's and video games. X'ers are very technologically savvy, having experienced the integration of personal computers into the school systems, the advent of home computing (15), and the growth of interactive media (17). This is the first generation to experience extensively a dual-income household with all the advantages and disadvantages. The members learned independence at day-care so they're used to being on their own. Finally, they are more comfortable with women and minorities in leadership roles as most of their mothers worked outside the home (13) and they themselves are quite racially diverse.

This is the best-educated generation in United States history as evidenced by college and university enrollments. In fact, the enrollment of high school graduates in higher education continues to hit record numbers, a trend initiated in 1980, the beginning year of X'er graduations (17). It must be noted, however, that as of March 1993, 24% of adults aged 25-29 held bachelor's degrees, not much different from a figure of 22% of the same-aged group based on research done in 1982. (27) The generation appears to be pursuing education for pragmatic marketplace returns rather than the intrinsic value of education (24).

Setting the Record Straight

Much has been written about Generation X and the challenges they present. Analysis of previous research, the bulk of which appears piece-meal in general business and trade publications, reveals some alarming contradictions. Marketers find this consumer group to be highly individualistic and diverse-- ethnically, culturally, and attitudinally (17). In fact, a thriving consulting industry has developed for those who have achieved the elusive understanding of this market segment. The going rate for a good "Generation X Explainer" is about $1,000 per day (9).

Myths Commonly Attached To Generation X

Generation X has certainly received its share of criticism in the popular press. Consider the following statements included in a cover story for Newsweek (60):

"... that cynical, purple-haired blob watching TV."

"The Boring Generation: Grow Up Crybabies, You're America's Luckiest Generation!"

"These kids today. They're soft. They don't know how good they have it. Not only did they never have to fight in a war ... they never even had to dodge one."

Indeed, twenty-something bashing seems to have become a popular sport among Baby Boomers. Douglas Coupland referred to this phenomenon as "clique maintenance": the natural tendency of one generation to view the following generation as deficient so as to bolster its own collective ego (2). The following list of myths is commonly attached to Generation X (6).

1. They're slackers (from the 1991 movie, "Slacker").

2. They're whiners.

3. Generation X is white.

4. They're all psychically damaged children of divorce.

5. Nirvana's Kurt Cobain (popular musician who committed suicide) was Generation X incarnate and beloved by all.

6. They'll buy anything.

7. Generation X exists against its will.

Reality Check

Just as generations before them, X'ers are being labeled as possessing many undesirable characteristics, in the view of non-member commentators. The following list of statements is offered to dispel the myths commonly attached to Generation X. Each numbered statement corresponds to the list of popular myths presented above (6).

1. Slackers exist in every generation with no greater representation in Generation X. Slackers represent a counter-culture group, a phenomenon not unique to Generation X.

2. Adjusted for inflation, the student debt burden for Baby Busters (Generation X), is double that of 1977 graduates. Further, downsizing has eliminated many entry-level positions and limited upward mobility. Still, Roper Center research showed no significant differences in national or personal mood between Boomers and Busters.

3. Generation X is ethnically diverse. They are 70% white, 13% black, 12% Hispanic, 4% Asian, and 1% Native American. By contrast, 77% of Baby Boomers are white. This group is much more accustomed to inter-racial interaction than previous generations.

4. Some Busters have, in fact, been affected by the liberalized divorce mentality within American society. During the 1970's and 1980's over one million children were affected annually, and some have even been severely affected. A generalization to all children of divorce is dangerous and irresponsible.

5. Curt Cobain, a deceased musician, spoke to a large segment of Generation X. He is not, however, regarded as the voice of a generation. In fact, many X'ers resented the media's attempting to portray Cobain as their spokesperson and using his death as an opportunity to attack them.

6. Baby Busters demand value. Further, they are more interested in the accumulation of experiences than tangible goods.

7. X'ers resent attempts by others, particularly Baby Boomers, to stereotype them. Such categorization is viewed as an opportunity to criticize and does not respect their individualism. Many people in this age range view the Generation X label as the creation of the media and marketing organizations.

Resentment, Rebellion, or Realism?

Resentment and rebellion are two words commonly associated with Generation X. Busters resent being saddled with what they believe to be the outcomes of irresponsible behaviors by previous generations: a cumbersome national debt, America's declining global competitiveness, environmental issues, racial strife, homelessness, AIDS, and divided families (16).

Further, many Busters believe that Baby Boomers are getting a "much better deal" than their generation will receive. This well-educated group enters the work-force at a time of much downsizing of traditional entry-level positions and limited promotional avenues for their skills unlike generations before them. Some analysts, particularly Baby Boomers, believe Generation X may be the first group in U.S. history unable to achieve a higher standard of living than their parents (11). As such, there is resentment of having opportunity seized from their grasp.

Generation X grew up during a relatively peaceful era in U.S. history. Their strongest impressions are of family, friends, and school. The lack of a unifying event, such as the military actions of WWII, Korea, or Vietnam, may have stymied their evolution into a relatively homogeneous group (16). Frustrated by bleak economic and career prospects, X'ers have spurred a rebellion of sorts with today's workplace providing the battleground and Boomer managers and co-workers the targets of their hostilities (15). It is interesting to note that Fortune ran a cover story in October, 1993 entitled, "Generational Tension in the Office: Why Busters Hate Boomers" (15). The outgrowth of this resentment and rebellion is a rather pragmatic approach to life among X'ers. Many of them view their role as the renovators of the American dream and values (24). They reject accumulation of material possessions in favor of the accumulation of experiences and other intangibles: a rich family or spiritual life, a rewarding job, the chance to assist others, and the opportunity for intellectual enrichment (16). One's work is viewed as a vehicle to provide for leisure, family, lifestyle, or experiential learning (3).

The more senior members of Generation X are about to enter their primary earning years. They continue to seek leadership roles within society and an increased role in the political process, possibly as a surrogate for the perceived lack of opportunity within the workplace. As generations before them, the contributions of Generation X will become more evident in the decades that follow. It is their pragmatic approach to life and the refocusing of their value system which may, in fact, turn out to be their strongest asset.

   Maybe the twenty-something generation
   does have trouble making a
   decision or a statement. Maybe they
   are just a little bit too cynical when
   it comes to the world. But their realism
   may help them keep shuffling
   along with their good intentions, no
   matter what life throws at them.
   That resignation leaves them with
   no illusions to shatter, no false expectations
   to deflate. In the long-run,
   even with their fits and starts,
   they may accomplish more of their
   goals than past generations did. (24)

What-to-Do's

Marketing to Generation X presents many challenges and opportunities given the great diversity within this market segment of over 50 million consumers with an estimated $125 billion annual purchasing power (26). It is recognized that there is great danger in over-generalizing any market segment, particularly Generation X. With caution noted, this section prescribes normative actions to assist marketers in reaching this elusive market segment.

Be Realistic in The Presentation

X'ers are realists. They trust themselves their friends. Beyond that, they tend to dismiss the claims of marketers as simply that--claims about a good or service designed to induce consumption. Further, they are also indifferent about talk of "deeper meanings" of life (23) as well as product selection and consumption (17). Straight talk is more effective than hype. A representative of the ad agency BBDO Worldwide suggests that X'ers have an acute "hype-radar" (9). Consider the following statement taken from Douglas Rushkoff's 1994 book, The GenX Reader (18).

   Exposed to consumerism and public
   relations strategies since we
   could open our eyes, We GenX'ers
   see through the clunky attempts to
   manipulate our opinions and assets,
   however shrinking. When we watch
   commercials, we ignore the product
   and instead deconstruct the marketing
   techniques.

This is the first generation to consist largely of latchkey kids with the television being the primary caretaker or even a surrogate parent. Further, they have been more involved in, even responsible for, a large part of the family shopping. Given their lifetime of exposure to mass media advertising and direct shopping experiences, they are aware of manipulation. Information provided through the media will not be accepted as factual on face value alone. It should be made clear: Generation X doesn't dislike advertising, they dislike hype (17).

Address the Concerns of Generation X

Marketers are advised to pay particular attention to the political sensibilities of Generation X. They tend to be more sensitive to gender issues (20). Further, a wave of sexual correctness has hit Generation X especially hard. As such, they are particularly sensitive to an advertiser's use of sexual images to manipulate their buying behavior (12). In addition, X'ers are very concerned with buying environmentally-safe products (9), particularly those that are recyclable or produced from recycled products (17).

Offer Value and Live Up to Claims

X'ers expect useful products that function well. As a group, they place less value on product prestige and symbolism while ascribing greater value to affordable quality. "Hipness" will take a back seat to affordable quality any time. This group is much more pragmatic than generations before them. Generation X consumers need to believe that they are receiving value, and that their purchases reflect their ability to identify and locate such value in the marketplace (17).

Many X'ers express disdain for the stereotypical yuppy of the 1980's: BMWs, investment banking, and conspicuous consumption (25). Today's Xer would rather buy a few high quality products with lasting value and an affordable price tag than a collection of products with a perceived short life span. Some firms particularly successful in reaching X'ers include Nike, Doc Martin, The Gap, and Saturn (17).

Additionally, Simmons Research conducted in 1993 showed that Generation X itself is less loyal to brands than are Baby Boomers. Further, X'ers are more likely to experiment with other brands. Intuitively, this makes sense when we recognize that they are used to shopping in large outlets. For example, a typical grocery store may have up to 30,000 different items displayed. Further, it is recognized that in the last ten years brand advertising dollars, which encourage brand loyalty, have been shifted to price promotions, which encourage brand switching. The brand advertising that has been done heavily targeted Baby Boomers (17).

Speak Directly to Generation X

This market segment's desire for value without hype demands refinement of traditional promotional activities of marketers. X'ers resent being lumped together with other consumers, especially Baby Boomers. As such, they demand communications that appeal directly to them and not merely as participants in a mass market (20). The Red Cross, for instance, ran an excellent advertisement which began with the recognition of the misconceptions about Generation X and then how X'ers can work within the Red Cross Volunteer program to help to dispel negative stereotypes.

Further evidence of the need for effective communication with X'ers was offered in two very telling statements about television and magazine usage since 1980, as X'ers began to exert their marketplace influence) (17).

1. Network television ratings began to decline in 1980. While cable TV contributed greatly to the fragmentation of the audience, so did Boomer-driven shows about them, which were of no interest to Generation X.

2. Magazine sales and readership began to decline in 1980 as Boomer-driven periodicals were of no interest to Generation X.

Re-Evaluate Current Media Selections

The appropriate message must be delivered via the appropriate media outlet. X'ers tend to read periodicals such as Time, Newsweek, People, Details, and Spin. Further, they are credited with helping to build the market for small, local metropolitan newspapers whose content is heavily-laden with entertainment guides, movie lists, and personal ads (17). Front this it is inferred that there is a desire for short and concise reporting and writing. Additionally, the extensive segmentation of radio formats provides a variety of those formats and stations, front Top 40's to Rap, from Hard Rock to New Age (14). It is interesting to note that some X'ers enjoy what is commonly referred to as Classic Rock, a format which delivers music very much identified with the teens and early 20's period of today's Baby Boomers.

Investigate New Communication Media

X'ers have come of age during a time of great technological change and have embraced this revolution as their own. Personal computers, fax, voice mail, email, beepers, and car phones to mention a few, are all tools to provide greater control for the users. X'ers use technology to personalize and humanize everything in their grasp, demanding only that hype and commercialism he controlled (17).

In every media category, X'ers have been pushing the line toward interactivity and away from mass communication since they first discovered how to turn on the television set and how to control its content with a remote control. Further, X'ers are disproportionately interested in 'how' the media works, as evidenced by the success of 'behind-the-scenes' shows about television, movie production, concerts, or production systems. One advertising executive offered the following assessment (17).

   As control shifts away from the
   media and into the hands of the consumer,
   a new generation awaits the
   advertising message, with a remote
   control in hand and cynicism in his
   heart.

Portray X'ers in a Positive Light

Much to their dismay, the characteristics of Generation X are often presented in a negative fashion. Converse All-Stars, for example, prepared an advertisement designed to depict irreverent behavior to sell athletic shoes. However, their use of X'ers shown spray painting a building was not well received, owing to the negative portrayal of their demographic group (17). Showing X'ers is a positive light is an opportunity for a responsive marketing effort which presents this group and its uniqueness in a positive manner. Generation X consumers will be validated by such images, possibly rewarding the organization with brand loyalty, assuming high perceived value (16).

What-not-to-Do's

Implied in the presentation of the series of positive normative statements above is the danger in disregarding such prescribed actions. Additional danger areas or pitfalls are presented in the sections that follow.

Don't Recycle The Past and Expect Success with X'ers

Marketing strategies effective at reaching Baby Boomers may not be appropriate for Baby Busters. Marketers must avoid the temptation of recycling successful products and advertisements without examining their effectiveness at reaching Generation X. This is particularly true of images attached to the 1980's given the X'er perception of the preoccupation with excesses during that period (14). In fact, one advertising executive offers this simple marketing rule: Never assume that X'ers are the same as Boomers, even when they look the same. Further, even when X'ers act like Boomers, their motivation for doing so may be entirely different (17).

Don't Try to be Hip

Any attempt to make a product or advertisement appear to be contemporary or 'hip' may appear ludicrous (8). Generation X'ers are apt to feel patronized by such attempts. Further, their media-savvy is unmatched by Baby Boomers, who themselves have always seen themselves as hip to the media (17).

Don't Come On Too Strong

Marketers are warned against the use of hard-sell tactics. Bashing X'ers over the head simply will not work. However, humor, especially the more bizarre and thought provoking, can be particularly effective (12). In fact, one marketing executive offered the following statement to capture the X'er viewpoint (5):

"Don't try to sell to us. Tell us who you are and we'll make up our minds whether we like you or not."

The X'er experience has produced a group of "cautious consumers, cost-conscience shoppers, and skeptical audiences for advertising." They want information and the opportunity to determine its accuracy and relevance (17).

Don't Neglect Diversity

The American marketplace continues to increase in its relative diversity, especially ethnic diversity. In fact, the people born between 1965 and 1978 are the most ethnically diverse group of young people in U.S. history (9). Currently, the fastest growing ethnic groups in the United States are Hispanics, Asians, and African-Americans. Marketers are cautioned that X'ers have come of age during this period of increased diversity and sensitivity toward subcultures. For example, African-Americans often set trends in fashion, language, and music for this generation. One effective way to appeal to African-Americans is to pay particular attention, even homage, to the history of their subculture.

Don't Take Yourself or What You Do Too Seriously

The lack of perceived opportunity, the disdain for the excesses of the 80's, and resentment of the responsibility for paying for "sins of the past" has fostered a shift to an increased desire for quality-of-life among Generation X. As such, marketers are cautioned against being perceived as too rigid, strict, or self-absorbed by X'ers. Though it may be difficult at first, they might agree that one should "relax and enjoy the ride."

Summary and Conclusions

Generation X is a complex consumer group with contradicting points of view, goals, and desires. Further, the members can be easily offended. This media- and technology-savvy group is not anti-advertising or marketing. Actually, they welcome it in its purest form (1). The challenge for today's marketer is to develop specific strategies to appeal to Generation X while recognizing the extreme diversity (cultural, attitudinal, economic) within the group itself. It is this very diversity that makes the presentation of more specific recommendations impossible and beyond the scope of this research. From a marketing standpoint, we must strive to improve our understanding of this very key market segment. For all their diversity, all that can be said about Generation X with any degree of certainty is that they are Americans they are in their twenties or early thirties. Beyond that, X'ers tend to be very individualistic; hence, the challenge for marketers. The following advice is offered tongue-in-cheek:

   All you have to do is find a straight
   forward, no frills, unselfconscious
   way to tell consumers in their 20's
   about your super-functional, totally
   practical yet mildly indulgent and
   greatly affordable product in a way
   that acknowledges their savvy understanding
   of advertising. Oh, and
   also make sure the message is not
   offensive (20).

Following years of analysis, marketplace attention, even obsession, Baby Boomers are no longer "the targeted consumer group du jour" (26). In the years to come, an organization's ability to refine its marketing efforts in favor of the demands of particular consumer groups will determine its ultimate success or failure. Be it Generation X or the group that follows (those 13-19 year olds referred to as Generation "Why") [9], a keen understanding of each group will determine whether it presents a BOOM or BUST to the organization.

(1.) Blais, Eric. (1994, June 6). Generation X: Targeting a Tough Crowd That's Not Easily Impressed. Marketing, 13.

(2.) Coupland, Douglas. (1991). Generation X: Tales for an Accelerated Culture. New York: St. Martin's Press.

(3.) Deutschman, Alan. (1992, July 13). The Upbeat Generation. Fortune, 42-53.

(4.) Dunn, William. (1992, February). Hanging Out With American Youth. American Demographics, 24-35.

(5.) Elliot, Stuart. (1993, September 13). In a Whiskey Pitch to Generation X Members, Leo Burnett Tries to Prove it is Not Their Father's Agency. New York Times, D7.

(6.) Giles, Jeff. (1994, June 6). Generalizations X. Newsweek, 62-72.

(7.) Jones, Landon Y. (1980). Great Expectations and the Baby Boom Generation. Coward, McCann, and Geoghegan.

(8.) Lavin, Douglas. (1994, June 29). Ford Escort Goes Over the Edge, Plummets Into Generation Gap. Wall Street Journal, B1.

(9.) Levine, Joshua. (1994, July 18). Generation X. Forbes, 293-294.

(10.) Maital, Schlomo. (1991, May). Here Come the Twenty-Somethings. Across the Board, 5-7.

(11.) Miller, Cyndee. (1992, July 6). Marketing to the Disillusioned. Marketing News, 6-7.

(12.) Miller, Cyndee. (1993, August 2). X Marks the Lucrative Spot, But Some Advertisers Can't Hit Target. Marketing News, 1.

(13.) Murphy, Terrence. (1991, July). Boomers, Busters, and 50-Plussers: Managing The New Generational Gap. Working Woman, 41-45.

(14.) Nichols, Judith E. (1991, July). Targeting Baby Busters. Fund Raising Management, 49-50.

(15.) Ratan, Suneel. (1993, October 4). Why Busters Hate Boomers. Fortune, 57-70.

(16.) Richardson, John E., & Sago, Brad. (1993). Baby Busters: The Neglected Generation. Annual Additions: Marketing. Dushkin Publishing Group, Inc., 121-124.

(17.) Ritchie, Karen. (1995). Marketing to Generation X. New York: Lexington Books.

(18.) Rushkoff, Douglas. (1994). The GenX Render. New York: Ballantine Books.

(19.) Sellers, Patricia. (1994, December 12). Don't Call Me Slacker! Fortune, 180-196.

(20.) Steinhauer, Jennifer. (1994, April 17) How Do You Turn On The Twenty-Something Market? New York Times Sec. 3, 5.

(21.) Stipp, Horst. (1994, March 21). X'ers Are Not Created Equal. MediaWeek, 20.

(22.) Strauss, Bill, & Howe, Neil. (1991). Generations: The History of America's Future. William Morrow Company.

(23.) Strauss, Bill, & Howe, Neil. (1993, September 26). Hey, Boomers: Share the Wealth, Dudes. New York Times, Sec. 3, 11.

(24.) Proceeding with Caution. (1990, July 16). Time, 56-62.

(25.) Woodruff, Michael. (1992, April). Understanding & Supervising the Twenty Somethings. Supervision, 10-12.

(26.) Zikmund, William & d'Amico, Michael. (1995). Effective Marketing: Creating and Keeping Customers. Minneapolis/St. Paul: West Publishing Co.

(27.) Zill, Nicholas & Robinson, John. (1995, April). The Generation X Difference. American Demographics, 24-33.

Dr. Mark Andrew Mitchell is the incoming Chair of the Department of Management, Marketing and Law at Coastal Carolina University, Conway, SC. He received his D.B.A. from Mississippi State University. His work has appeared in Journal of Marketing Theory and Practice, International Journal of Logistics Management, Ethics and Critical Thinking Journal, and Nonprofit World. He was employed in the Institutional Foods Industry prior to returning to the university. Born in 1963, Dr. Mitchell possesses a keen awareness and understanding of the Generation X experience.

Ms. Piper McLean is a graduate of the University of South Carolina--Spartanburg with a B.S. in Communications/Business. A Baby Buster herself, Ms. McLean was invaluable in the preparation of this manuscript. She is currently employed in corporate communications. Piper McLean is now with Spartanburg Country Public Schools, Spartanburg, SC.

Dr. Gregory Turner is an Associate Professor of Management and Marketing at the School of Business and Economics, College of Charleston. He received his D.B.A. from Mississippi State University. His work has appeared in Journal of Marketing Theory and Practice, International Journal of Logistics Management, Journal of Marketing Management, International Journal of Purchasing and Materials Management, International Journal of Physical Distribution and Logistics Management, Transportation Journal, Ethics and Critical Thinking Journal, Logistics and Transportation Review, Journal of Business Ethics, and various academic and trade publications. Born in 1964, Dr. Turner identifies keenly with the Generation X experience.