OH BOOMER
Where art thou?
GENERATIONAL ANALYSIS
A user guide
A GUIDE TO GENERATIONAL ANALYSIS
Where art thou?
A GUIDE TO GENERATIONAL ANALYSIS
A user guide
Much of what is written about generations is awash with misperceptions and shallow stereotypes. Young people are lazy, afraid of work, entitled, make poor financial decisions and are self-obsessed.
This unveils one apparent universal truth: for more than 2,000 years, older people have never liked young people.
Yet generation analysis – when done properly – is one of the most powerful tools we have to understand how and why societies are changing. Here are two considerations to hold in mind as you carry out your own generational analysis.
Much of what is written about generations is awash with misperceptions and shallow stereotypes."
1. Not all change is a generational change
Attitudes and behaviours often differ by generations. But these differences may mellow (or strengthen) as generations age. They may converge (or diverge) as they hit different milestones. And they may adapt in line with overall changes in society or indeed sudden shocks.
A better understanding of generations begins by detangling three key effects: life stage, period and cohort effects.
In doing so, we can look beyond the rhetoric and headlines and start to develop a clearer picture of the similarities and differences between generations and the forces shaping consumers.
A better understanding of generations begins by detangling three key effects: life stage, period and cohort effects."
Life cycle effect
A generational cohort displays different behaviours or attitudes as a result of their current age or life stage, with attitudes changing as they grow up and experience different life events. They tend to exercise and date more when they are young, spend more on home furnishings and furniture once they buy their first home, travel more before they have children, buy larger cars once they start a family, and spend more on life insurance as they get older.
Gen Z may currently spend more time dating than Gen X or Baby Boomers, but not more time than Gen X or Baby Boomers when they were the same age. Similarly, as Gen Z age and move into a different life stage, it is likely that any currently distinct levels of physical activity may lessen, mirroring the behaviour of Millennials when they were the same age.
And it follows that Millennials today may spend more money in hardware stores than Gen Z – but as Gen Z age and reach the milestone of purchasing their first homes, they may well pass through the same patterns.
Period effect
Attitudes and behaviours of all generational cohorts change in a similar way over the same span of time, usually resulting from a shared major historical or social event. These events influence the population at large, altering behaviours and attitudes across ages and generations.
The COVID-19 pandemic has resulted in a range of period effects: increased remote and hybrid working, declines in mental health, rises in telemedicine, and changes to how we socialise with friends and family online. These have affected people across ages and across generations.
Cohort effect
A generational cohort has different attitudes and behaviours and these are staying different over time. Cohort effects are hardest to spot as they require longitudinal data to show that a generation is both different from other cohorts today, and different from other cohorts when they were the same age. Once spotted, they are a powerful tool.
Examples may include being more materialistic than other generations, job hopping more, having fewer children, changes in TV and streaming behaviour, less brand-loyalty, or being more or less socially liberal.
Many misperceptions about generations are the result of conflating life cycle or period effects with the more elusive cohort effect.
2. Understanding culture and context is essential
Generational terms like ‘Baby Boomer’ or ‘Millennial’ are largely based on a US or North American context. But key cultural events used to define each generation – e.g. a post-World War II baby boom – did not happen everywhere and these terms travel less well outside of the Western world.
As documented in our 2024 report, people’s ability to identify which generation they belong to falls as they gain more cultural distance from the US. At least half can correctly identify which 'Western' generational cohort they are a part of in the US (62%) and Great Britain (50%), but this falls to 16% in China and 5% in India.
What's more, while 'Western' terms are often used in business, marketing and the media, many countries have their own locally relevant labels as a result of unique cultural or historical events.
By taking account of local context, and by separating out the three effects governing change, we can look above the rhetoric and headlines and start to develop a clearer picture of the similarities and differences between generations and the forces shaping consumers.
At least half can correctly identify which 'Western' generational cohort they are a part of in the US (62%) and Great Britain (50%), but this falls to 16% in China and 5% in India."
Ipsos perspectives
“One term people use is ‘decretei’ [the children of the decree], meaning people who were born after Ceaușescu’s decree from October 1st, 1966, forbidding the voluntary interruption of pregnancy. This decree was followed by a large cohort being born as of 1967, which now form Gen X.”
Alina Stepan, Country Manager, Ipsos in Romania
“People use the terms like post-80, post-90, post-00 and post-10 to describe the years when they were born and to segment the target audience. Sometimes those terms could be further segmented to post-85 (which means people born between 1985 and 1989) or post-95.”
Patrick Xiang, Chief Marketing Officer, Ipsos in China
“These generational classifications are less relevant in the Indian context because the generational divides are not well aligned to the Indian story. While the pre-independence generation has a clear set of values and way of life, the concept of 'Boomers' doesn't hold much significance. When used in India, these generational terms often reflect American stereotypes rather than Indian experiences.”
Geeta Lobo, Country Chief Client Officer, Ipsos in India
“In Brazil, terms like ‘Gen Z’, ‘Millennials’, ‘Gen X’ and 'Baby Boomers’ are increasingly recognised and used, particularly in urban areas and among those engaged with global media and trends.”
Priscilla Branco, Senior Manager, Ipsos in Brazil
“Of course people are aware of these terms, but we really do not use them a lot in Nigeria.”
Ibitayo Salami, Country Manager, Ipsos in Nigeria
Key takeaways
Not all change is generational
Differences between generations may be indicative of a broader shift in societal views, or else due to different positions in the life cycle. True generational change (cohort effect) is when attitudes and behaviours remain distinct over time.
Where and when you were born matters
Local events may have shaped attitudes and behaviours in a way that is more relevant to understanding people than by using global labels.
Avoid stereotypes and misconceptions
Authentic generational analysis should move beyond superficial stereotypes to uncover more accurate insights into consumer behaviour.
For more on generational analysis, or to discuss these findings further, please contact IKC@ipsos.com
