Generational differences in South African consumers' brand equity perceptions

Abstract

South Africa has undergone profound political and social transformations since 1990. These changes influenced the perceptions of individuals in Generations X and Y. In South Africa, the members of Generation X experienced their formative years during the transitional years of South Africa’s young democracy during the 1990s, while the members of Generation Y were born during the last decade of apartheid. For the purpose of this study Generation X was classified as those consumers who were born in the period of 1961 to 1981, while Generation Y was born in the period of 1982 to 1994. Generation Y would recall the release of Nelson Mandela from prison and the political transition in the country. The study focused on generational cohorts instead of generations. Generational cohorts are distinct from generations as they are defined according to their transition from childhood to adulthood. A generation on the other hand is defined by its year of birth. This study investigated possible differences in the brand equity perceptions of South African consumers in Generations X and Y. It generated insights regarding generational differences in consumers’ perceptions of four specific brand equity dimensions, namely brand awareness, brand associations, perceived quality and brand loyalty. Equally important was a comprehensive understanding of how consumers in Generations X and Y differed with regard to the aforementioned four consumer-based brand equity (CBBE) dimensions when making a purchase decision regarding electronic consumer goods, particularly a television set. Consequently, this study extended the existing knowledge of consumer behaviour and CBBE by investigating pertinent perceptual differences between Generations X and Y. A mall intercept survey using a self-completion questionnaire was used to gather quantitative data from 223 respondents in Generations X and Y who purchased or were exposed to television sets. A demographic profile of the respondents who participated in the study indicates that 67 of the 114 respondents in Generation X (i.e., 53.2%) were males, compared to 59 of 108 respondents in Generation Y (i.e., 46.8%). The majority of respondents in both Generations X and Y had a diploma as their highest qualification. The Generation X sample contained a higher proportion of African respondents (i.e.,59.5%) compared to the Generation Y sample (i.e., 40.5%). The income profile suggested that there were distinct differences in terms of net monthly household income between respondents from the two generations. Serveral exploratory factor analysis (EFA) were conducted in which the Likert scale statements in question 3 to 6 (see Appendix A p.170-174) measuring different subdimensions of consumer-based brand equity dimensions were subjected to a principal components analysis (PCA) with varimax rotation. The results of the final EFA analysis involved 17 Likert scale items. The PCA revealed four factors (components). These components were brand associations in terms of product quality and value, brand awareness, brand loyalty and brand associations in terms of product manufacturer. Further statistical analysis was conducted based on the four components to test for significant mean differences. The non-parametric test, Mann-Whitney U Test, was conducted. The results confirmed the alternative hypothesis that, there are significant differences between Generation X and Y with regard to their perceptions of brand loyalty. The implications of the findings of the study, to marketing practitioners and brand managers is that they need to understand the type of association Generation X and Y have regarding their brands for effective and strategic planning in order to remain competitive. In addition to that, Generation X’s perception of quality does not differ significantly to that of Generation Y, thus it will be beneficial for practitioners to develop unique quality features. Consequently, they must intensify awareness around their brands.