A consumer study by Scorpion reveals Gen Z and Millennials are more willing to spend now and say they are better off financially than Gen X and Baby Boomers.
Scorpion, the leading provider of technology and services that help local businesses thrive, announced the results of a survey that explores the generational differences in consumer behavior and business expectations during this inflationary period. The survey was conducted with 1,050 U.S. consumers in Q3 of 2022 by Scorpion and Qualtrics.
Consumer study key findings on generational differences include:
- Gen Z and Millennials are 3x more likely to say they’re better off financially this year compared to Gen X and Baby Boomers (38% vs. 13%).
- While 75% of Americans think it will take 2 or more years for inflation rates to return to normal, younger generations are 50% more likely to resolve big expenses now than wait until 2024.
- Gen Z and Millennials are up to 2x more likely to spend on luxuries such as electronics, dining out, and travel than Gen X and Baby Boomers.
- Gen X & Baby Boomers are 2x more likely to put off spending if prices continue to rise than Gen Z and Millennials (50% vs. 27%).
- Gen X and Baby Boomers are 50% more likely to turn to TV for inflation & economic news than Gen Z and Millennials (77% vs. 53%). However, Gen Z and Millennials are 3x more likely to trust social media than Gen X and Baby Boomers (32% vs. 12%).
- Gen Z and Millennials are 2x more likely to show inflation fatigue than older generations (23% vs. 12%).
Key findings on business and consumer outlook include:
As service costs continue to rise, consumers are more likely to take steps they normally would not:
- 47% would look for ways to do things themselves (DIY).
- 35% would consider temporary solutions.
- 31% would spend more time comparing providers
While price is key to winning today, companies can still build trust for the future by providing the best possible experience:
- Down the road, 40% of consumers would hire businesses they could not afford at this time which provided excellent service.
- 45% want to know what businesses are doing to help mitigate pricing.
- 42% expect breakdowns of pricing to understand what they are getting.
- 37% need clarity on services that are essential vs. optional.
- 32% want organizations to show what they are doing to provide more value.
Joe Martin, VP of content marketing at Scorpion stated:
As many Americans accept today’s challenging economy, this is a good time for businesses to focus on winning and retaining customers. With increasing competition in most industries, customers expect excellent service, fair pricing, transparency, and many other things from the businesses they buy from. As the data shows, demographic differences provide opportunities for revising customer marketing while offering different relationship-building strategies for all generations.
This study was designed to understand how consumers have been impacted by high inflation as well as how changes in purchasing behavior have affected businesses. The sample size was 1,050 U.S. consumers. Download the full report.
For over two decades, Scorpion has helped local business owners leverage technology and marketing to reach their goals. Scorpion helps business owners understand their local market and optimize their marketing efforts to drive more revenue. Through award-winning technology and dedicated people, Scorpion helps businesses run their best business—unifying every part of their business towards reaching their goals.