Generation Y, the popular demographic label for people born between 1979 and 1994, represent quite a different buying group than their Baby Boomer parents. More than 60 million strong, the members of Gen Y are more racially diverse, more likely to grow up in a single-parent household and more likely to have a working mother, according to the International Housewares Association (Rosemont, Ill.).

Because brand loyalty is not a strong trait among these consumers, companies that once held a competitive edge based solely on their brand portfolios are likely to feel pressure from new companies rolling out products popular with Gen Y buyers.

Price and features are the leading motivators for Gen Y buyers, according to IHA. Compared with Baby Boomers, they are not yet set in their ways of doing things, and seek products that represent their individuality in terms of color, style and/or design. They also are likely to be attracted to “smart” and “green” appliances and housewares that make their hectic lives easier without breaking the bank.

Gen Y consumers also respond differently to marketing than earlier generations. Bombarded by product advertisement since birth, these customers are ignoring print and TV ads that boast image and celebrity, and are more responsive to ads that incorporate irony and humor. As a marketing medium, the Internet has become as effective, if not more effective, in targeting these consumers than print and television. [January 2005 PET AGE]