Professional Documents
Culture Documents
Charles D. Schewe
is Professor of Marketing at the University of Massachusetts in Amherst and principal
in Lifestage Matrix Marketing, a consulting firm focusing on the ageing of
populations. He received his MBA from the University of Michigan and his PhD from
the Kellogg School of Management at Northwestern University. He has published
over 50 articles in academic journals and over a dozen books. In 1979, he had a
Fulbright Scholarship to the University of Lund where he continues to be a frequent
visiting professor.
Geoffrey Meredith
is President and Founder of Lifestage Matrix Marketing, a research and consulting
firm located in Lafayette, California. He holds an MBA from Stanford Graduate School
of Business. He has over 20 years of experience in advertising and marketing, having
held senior vice president positions at Ogilvy & Mather, Ketchum Communications
and Hal Riney and Partners, all in San Francisco.
Keywords:
Generational
cohorts, market Abstract
segmentation, Marketing has long rested on the use of market segmentation. While birth age has been a
consumer values, useful way to create groups, it describes segments but in itself does not help to understand
consumer segment motivations. Environmental events experienced during one’s coming-of-age years,
behaviour however, create values that remain relatively unchanged throughout one’s life. Such values
provide a common bond for those in that age group, or cohort. Segmenting by ‘coming-of-
age’ age provides a richer segmentation approach than birth age. This approach, known to
work in America, is used in this paper to create generational cohorts in Russia and in Brazil.
behaviour in ways that remain with were able to cite personal experiences as
them over their entire lifetime (Meredith reasons why these events were
and Schewe, 1994; Ryder, 1965). Shared influential to them. For example, a 72-
experiences during the highly year-old woman, referring to the Second
influenceable ‘coming-of-age’ years World War, stated ‘my husband was
(approximately 17–23 years of age) are away from me for three and a half years
embedded in these values, or ‘cohort and it changed my life a lot. I had a
effects’ and they remain relatively child when he was gone, and I had to go
unchanged throughout life. through that alone’ (1989, p. 373).
Today, many call marketing to birth Individuals who did not come of age
groups generational marketing. Cohorts during the Second World War or
are not generations as each generation is Vietnam were unable to give these
defined by its years of birth. For kinds of accounts. Instead, they cited
example, a generation is usually 20 to 25 less personal reasons for the importance
years in length, or roughly the time it of these events. Because the latter
takes a person to grow up and have respondents could not attach personal
children. But a cohort can be as long or meaning to these historical events, it is
short as the external events that define unlikely that their values, attitudes and
it. A cohort defined by the Second behaviour were strongly influenced by
World War, for example, may be only them.
six years long. Similar patterns emerged for
individuals’ recollections of the
WE ARE WHAT WE EXPERIENCE WHEN Depression, advances in
COMING OF AGE communications and transportation,
The notion of cohorts rests on the John F. Kennedy’s assassination,
assumption that individuals are highly terrorism and the development of
influenced by events occurring during nuclear weapons. Individuals who were
their coming-of-age years; however, do in their 70s during the time of the study
different cohorts really recall different were the most likely to mention the
events and experiences as influential in Depression and advances in
one’s life? If certain events were communications and transportation as
influential, when did they occur? influential to them. These individuals
Schuman and Scott (1989) conducted a would have been in their teens and early
study that addresses these questions. 20s, coming-of-age years, during these
They asked 1,410 Americans to recall events. Additionally, this age group was
three national and world events over able to give personal accounts of the
the past 50 years that were especially Depression years, the development of
important to them and tell why they the radio, television and jet aeroplanes.
were important. The Second World War Similarly, individuals who would have
and the Vietnam conflict were been in their teens and early to mid-
mentioned most frequently by all age 1920s when Kennedy was assassinated
groups. An interesting pattern occurred, in 1963 were the most likely to mention
however, as individuals who were this event as influential. Finally,
between 16–24 years old during the terrorism, which hit a high note in 1979
Second World War (1941–1945) and 15– with the hostage crisis in Iran, was
27 years old during the Vietnam conflict recalled most often by younger
(1965–1973) were significantly more members of the sample who would have
likely to recall these events as being been in their late teens during that crisis.
especially important to them. These younger individuals were also the
Schuman and Scott (1989) also found most likely to cite the development of
that individuals who experienced these nuclear weapons as important collective
events during their formative years memories.
Thus, Schuman and Scott (1989) cohorts with different dates, different
clearly demonstrate that similarly aged lengths and different values.
individuals have similar memories.
These memories are recalled CONDITIONS NECESSARY FOR
predominantly from adolescence and COHORT FORMATION
young adulthood. Additionally, Not all countries do in fact have cohorts
individuals appear to have personal as found in the USA. For cohorts to
experiences with the events that they form, there are some key requirements.
cited, suggesting that these events are These are mass communication
likely to influence them in the future. capabilities, literacy and social
Holbrook and Schindler (1989, 1994) consequences.
also illustrate the importance of young Today, developed countries are
adulthood memories. They show that technologically advanced. But for the
young adulthood experiences are likely impact of a defining moment to be felt
to influence consumers well into their by a society, that event must be
adulthood. Although ‘young adulthood’ conveyed to them. Today, local, national
is defined fairly broadly, Holbrook and or world events are broadcast to almost
Schindler (1989) found that consumers every home in the USA within minutes
are most prone to the socialisation of of them occurring, allowing each
music at around 23 years of age and individual to be apprised of historical
movie stars at 14 years of age (Holbrook events. This happens throughout so
and Schindler, 1994). Similarly, the many countries of the world. Even
socialisation of preferences for apparel Saddam Hussein received much of his
occurs in young adulthood. When asked intelligence information about the
to rate their preferences for pictures Desert Storm war of 1990 via television,
exemplifying various types of women’s watching CNN in his bunker. This fast
apparel over the decades, men showed and continuous flow of information,
the most preference for apparel that however, does not occur in many
women were wearing when they (the developing countries.
men) were around 24 years of age When events are communicated by
(Schindler and Holbrook, 1993). word of mouth, they appear to have
Cohort effects are life-long effects. less credibility and less of an impact
They provide the communality for than if communicated by newspaper,
each cohort being targeted as a radio or television. The transfer of
separate market segment. Since these information can only be imagined in so
cohorts can be described by the ages of many of the countries of Africa or in
their constituents, they offer an Tibet, Mongolia or Borneo. In such
especially rich vehicle for marketing situations, the impact of events would
campaigns. In the USA, seven distinct be severely diminished as time and
cohorts have been delineated as interpretation take their toll.
internally homogeneous on values and Education affects all aspects of a
at the same time heterogeneous country’s culture, from economic
between cohort groups (Meredith and development to consumer behaviour.
Schewe, 2002). These groups are Literacy also has a profound effect on
shown in Table 1. the existence and formation of cohorts.
The existence of cohorts has been In countries where the illiteracy rate is
found in other developed countries high, many individuals may not
(Meredith and Schewe, 2002). Yet it is understand the implications,
the nature of the defining moments importance or impact of a defining
within these other cultures that defines event. Thus, it is unlikely that this event
the topography of the cohort terrain. will influence their values.
Different defining moments create Along similar lines, defining
Depression cohort (born from This group’s coming of age experience consisted of economic strife,
1912–1921; came of age elevated unemployment rates and having to take menial jobs to
during the Great Depression; survive. Financial security — what they most lacked when coming
aged 83–92 in 2004) of age — rules their thinking.
Second World War cohort Sacrifice for the common good was widely accepted among
(born from 1922–1927; came members of this cohort, as evidenced by women working in
of age during the Second factories for the war effort and men going off to fight. Overall,
World War; aged 78–82 in this cohort was focused on defeating a common enemy and their
2004) members are more team-oriented and patriotic than those of
other generational cohorts.
Post-war cohort (born from These individuals experienced a time of remarkable economic
1928–1945; came of age after growth and social tranquility, a time of family togetherness, the
WWII; aged 59–76 in 2004) Korean conflict, McCarthyism, school dress codes and moving to
the suburbs. Overall, this cohort participated in the rise of the
middle class, sought a sense of security and stability, and
expected prosperous times to continue indefinitely.
Leading-edge baby boomer This group remembers the assassinations of John and Robert
cohort (born from 1946–1954; Kennedy and Martin Luther King, Jr. It was the loss of JFK that
came of age during the largely shaped this cohort’s values. They became adults during
turmoil of the 1960s; aged the Vietnam War and watched as the first man walked on the
50–58 in 2004) moon. Leading-edge boomers were dichotomous: they
championed causes (Greenpeace, civil rights, women’s rights),
yet were simultaneously hedonistic and self-indulgent (pot, ‘free
love’, sensuality).
Trailing-edge baby boomer This group witnessed the fall of Vietnam, Watergate Nixon’s
cohort (born from 1955–1965; resignation. The oil embargo, the raging inflation rate and the
came of age during the first more than 30 per cent decline in the S&P Index led these
sustained economic downturn individuals to be less optimistic about their financial future than
since the Depression; aged the leading-edge boomers.
39–49 in 2004)
Generation X cohort (born from These are the latchkey children of divorce who have received the
1965–1976; came of age most negative publicity. This cohort has delayed marriage and
during a time of instability children, and they do not take these commitments lightly. More
and uncertainty; aged 28–38 than other groups, this cohort accepts cultural diversity and puts
in 2004) quality of personal life ahead of work life. They are ‘free agents’
not ‘team players’. Despite a rocky start into adulthood, this
group shows a spirit of entrepreneurship unmatched by any
other cohort.
N Generation cohort (born from The youngest cohort is called the ‘N Generation’ or ‘N-Gen’ because
1977–?; came of age during the advent of the internet is a defining event for them, and
the ‘Information Revolution’; because they will be the ‘engine’ of growth over the next two
aged 27 and under in 2004) decades. While still a work in progress, their core value structure
seems to be quite different from that of Gen-X. They are more
idealistic and social-cause oriented, without the cynical, ‘What’s
in it for me?’ free-agent mindset of many Gen-Xers.
Event* Date
COHORTS AND DEFINING MOMENTS
AROUND THE WORLD The First World War 1914–1918
Within a given country, defining Great Depression 1920s and 1930s
The Second World War 1941–1945
moments come from both national and Cold War and threat of 1946–1953
international events. Some cohort nuclear war
Advent of television 1940s and 1950s
defining moments are unique to a Energy crisis 1970s
nation, such as economic or political Fall of Berlin Wall 1989
Development of the internet 1990s
change, or even the spread of Dissolution of Soviet Union 1991
technology within a society. Other Gulf War 1991
defining moments come from events *These events are not ranked in order of impor-
that occur outside the country. Random tance, but by date.
and fear of bombings became a part of would be aged 81–92 in 2004. This
daily life. Meanwhile, in America, cohort experienced Stalin’s massive
except for the 450,000 who actually campaign to force Russian peasants into
fought the battles, the war was more of collective and state-run farms operated
a distant story. This may account for the by communist party representatives.
differences in patriotism and spirit. Five million peasants who had the
misfortune of accumulating more
COHORTS IN RUSSIA AND BRAZIL property than their neighbours lost their
Extensive research was conducted in lives during this time. The plummeting
both Russia and Brazil to identify the agricultural production that resulted
cohort structure that exists in each from collectivisation precipitated the
country. Academic literature and famine that is forever etched in this
general news media for the 20th century cohort’s memory. Despite these horrid
were scanned. Sociologists and other outcomes, this cohort as a whole
behavioural scientists were interviewed. regards the period relatively benignly.
Historians and other experts were As bad as it was, for many former serfs
conferred with. This phase resulted in (who had, in truth, been slaves as one
the structuring of cohorts in each nation. would define the term), collectivisation
Then focus groups were conducted in was an economic improvement. Because
each country to gain further insight into the mass exterminations, or pogroms,
the true nature of the cohorts. What were not publicised unless a family
resulted from this process forms the member was taken away in the night
basis for the following descriptions. and shot, one tended not to know about
it. Without group awareness, an event
Russia cannot be cohort-defining. The state was
During the last half-century, Russia has seen as the liberator of the masses, and a
gone through tremendous social and protector and saviour from the
political change — a situation that has predatory West. Thus, this cohort
had a very real impact on the country’s values dedication to the communist
cohort structure. In Russia, six different party, nationalism and belief in the
cohort groups have been identified (see state, and they tend to be suspicious of
Table 4 for more detail). the West.
Cohort Born Coming of age Age in 2004 Defining moments Key cohort values
Great Patriotic War 1924–1936 1941–1953 68–80 • The Second World War • Intensely patriotic
(WWII) • Cold War • Nationalistic
• Death of Stalin • Resent youth
• Feel unappreciated
• Against perestroika
The thaw 1937–1952 1954–1969 52–67 • Sputnik • Greater social and economic freedom
• International Youth Festival • Idealism
• Gagarin first man to orbit earth • Individuality
• ‘Prague Spring’ • Support perestroika
Stagnation 1953–1968 1970–1985 36–51 • Bad economic times • Erosion of faith in communism
• Emigration to the West • Inner-directedness
• Gorbachev’s rise to power • Pessimistic about future
• Cynical and withdrawn
• 30% prefer to live outside Russia
Perestroika 1969–1974 1986–1991 30–35 • Perestroika and glasnost • Political activists
• Chernobyl • Against central authority
• Parliamentary elections • 50% prefer to live outside Russia
• Fall of Berlin Wall • Materialistic
• Yeltsin elected President
• Soviet Union dissolved
death in 1953. Cohort members would Western products and fashions also
be aged 68–80 in 2004. The Second began to be allowed, and this helped to
World War was a unifying event that give Russians a taste of the value of
brought Russians together like no other capitalism. Sputnik, the International
official campaign could. It gave the Youth Festival, Yuri Gagarin’s orbit of
people oppressed by hardships a sense the Earth and the ‘Prague Spring’ are all
of purpose and pride in a job well done. defining events for this group. Even
Young soldiers were taught not to fear today, this cohort values greater social
death and not to lose their heads under and economic freedom, idealism and
fire. The Cold War and the death of individuality, and its members tend to
Stalin are two other important defining be supportive of perestroika.
moments of this era. The Second World
War cohort enjoyed greater freedom The Stagnation cohort
and personal initiative than its This cohort came of age from 1970 to
predecessor, the Collectivisation cohort. 1985, a time when the Soviet economy
Through the schools, the Soviet deteriorated, hopes of liberalisation
propaganda machine produced youths faded away, and the Soviet regime
who were fiercely ideological. Over and began to lose its legitimacy under the
over again, they were taught that only leadership of Leonid Brezhnev. This
the Soviet state would protect them cohort would be aged 36–51 in 2004,
against the evil and decadent aggressors and roughly corresponds to the trailing-
— not only Germany, but England and edge boomers and Generation X cohorts
France as well. For a time, the USA in the USA. No one particular event
enjoyed a somewhat more positive stands out as a defining experience for
status, due to the war material provided this group. Rather, a series of tactical
by the Lend-Lease Programme; and strategic retreats sapped this
however, this ended with the bombing cohort’s collective energy. Defining
of Hiroshima, as Stalinist propaganda moments include bad economic times,
charged that ‘Russia is next!’ Even an increase in emigration to the West
today, this cohort is intensely patriotic and Mikhail Gorbachev’s rise to power.
and nationalistic, they resent the Key cohort values include the erosion of
freedom of youth, feel unappreciated faith in communism, an inner-
and many are against the reforms of directedness, pessimism about the
perestroika. future, tendencies to be cynical and
withdrawn, and a preference for living
The Thaw cohort outside of Russia. Despite this
This cohort includes what would be the negativity, this cohort also retains a
post-war and the leading-edge boomers perverse nostalgia for the stagnation
cohorts in the USA. Their coming of age years. Those times might not have been
years span from 1954 to 1969, and they so good — but at least there was
would be 52–67 in 2004. It is difficult to stability and this is something that is
imagine how these two cohorts could be sorely lacking in Russia today.
grouped together, but clearly this
cohort’s defining moments take a sharp The Perestroika cohort
departure from those in the USA during This cohort came of age from 1986–1991
the same time period. After Stalin died and would be aged 30–35 in 2004. This
in 1953, the country began to change its group roughly corresponds with the
course. Nikita Khrushchev denounced Generation X cohort in the USA. This
past abuses and freed the survivors of era of liberalisation began with Mikhail
the gulag. As a result, this cohort Gorbachev’s 1986 campaign for glasnost
absorbed the spirit of liberal reforms (‘openness’) and perestroika (‘political
that swept the country during this time. and economic restructuring’). Other
Cohort Born Coming of age Age in 2004 Defining moments Key cohort values
attention and products that suit their Reflecting a cohort’s values in the copy
lifestyle. They do not want to be of an advertisement immediately tells
encumbered with mistargeted or the cohort members that their inner
misguided products and promotions. feelings are understood. Such marketing
Cohort analysis can provide a sense of executions resonate extremely well with
familiarity and personal appeal to these cohort members.
savvy consumers, bringing them one Finally, as cohorts age and enter new
step closer to making a purchase and life stages, they bring their coming-of-
providing the groundwork for building age cohort value systems, wants and
long-term relationships. needs with them. Cohort analysis can
Cohort targeting helps in developing aid in tracking and forecasting changes
and repositioning products to be more that will take place. Cohorts will impose
in line with a given cohort’s desires. In their values and preferences on the way
short, using a target cohort’s values as they carry out their lives. Retirement,
product platforms allows for greater grandparenting and the ‘golden years’,
accuracy in one’s product offerings. for instance, are likely to mean taking
Cohort analysis also aids in designing on very different rights and
communication campaigns. responsibilities as the Iron Years cohort
Determining music, movie stars or icons moves into these life stages. As such,
that cohorts identified with from their understanding cohort values will allow
coming-of-age years can be an effective better forecasting of changes and, in
means of speaking to a given cohort. turn, more effectively meet marketplace
These tactics work because they rely on wants and desires.
nostalgia marketing, reminding
individuals of the good old days. REFERENCES
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