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PRACTICE PAPERS

Segmenting global markets by


generational cohorts: Determining
motivations by age
Received in revised form.

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.

INTRODUCTION and highly successful approach is being


Finding groups of consumers with recognised (Meredith and Schewe,
strong, homogeneous bonds is the ‘Holy 2002). Established in the USA,
Grail’ of marketing. When such generational cohort marketing is being
similarities exist, marketers can offer the used by especially astute marketers
same (or very similar) product, around the world.
Charles D. Schewe distribution and/or communications Cohorts are groups of individuals
University of programmes to a large number of who are born during the same time
Massachusetts
Umass potential customers who are more likely period and travel through life together.
Amherst to respond in the way desired. They experience similar external events
MA 01003
USA Efficiency in marketing is realised and during their late adolescent/early
Tel: +1 413 256 0914 marketers and consumers benefit. Many adulthood years. These ‘defining
Fax: +1 413 253 3338
e-mail: schewe@
ways to segment markets have long moments’ influence their values,
mktg.umass.edu been known. Now a fresh, innovative preferences, attitudes and buying

Journal of Consumer Behaviour Vol. 4, 1, 51–63 #Henry Stewart Publications 1472-0817 51


Charles D. Schewe and Geoffrey Meredith

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.

52 Journal of Consumer Behaviour Vol. 4, 1, 51–63 #Henry Stewart Publications 1472-0817


Segmenting global markets by generational cohorts

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

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Charles D. Schewe and Geoffrey Meredith

Table 1 Seven American cohorts

Cohort profile Cohort description

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.

moments need to have societal Eastern European nations, Lebanon and


consequences for them to be cohort China may be examples of good areas for
forming. For example, the death of cohort analysis). But most under-
Princess Diana, even though it was developed countries today do not
emotionally difficult, is unlikely to be a provide fertile ground for cohort analysis
cohort-defining event because it had and cohort segmentation marketing.
little social impact. In fact, it is not a
defining moment even in England. In SAME HISTORY, SAME COHORTS
sharp contrast, the death of JFK was a Generational cohorts can be used to
defining moment because it stole from segment various age groups in the USA.
the American public the optimism that But can these same cohorts also be used
the Camelot White House provided. to segment target audiences on a global
These conditions are certainly found in scale? The answer depends on which
all developed countries of the world and age group is considered and in which
in some emerging countries (India, countries. It has been shown that other

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Segmenting global markets by generational cohorts

countries also have various generational samplings of people from various


cohorts embedded within their societies, countries show the 20th century events
and these cohort values can be tapped listed in Table 2 as examples of defining
by marketers to build rapport with moments that had a global reach, while
customers and increase sales. those listed in Table 3 had more of a
The USA and the UK share many country-specific or regional impact.
striking similarities in terms of defining Whether defining moments are regional
moments and cohort values (Scott and or global in scope, they all contribute to
Zak, 1993). The Great Depression, the the development of shared values.
Second World War and the Cold War The Second World War was
were all important events that shaped mentioned as key for almost all
the coming of age years of youths in countries, but its interpretation is
both countries. This is not unexpected, different in different countries, as
given the extremely close cultural and Jacqueline Scott and Lilian Zac found in
historical ties between the two nations. their 1993 study of collective memories
In Brazil, however, there was no in Britain and the USA:
Second World War cohort at all. Brazil
‘. . . Although both Britain and America
did not participate in that war but regard World War II as the most
remained neutral. Hence the Second important event of the last half century,
World War did not really impact Brazil the meaning attached to the war is
in any meaningful way — therefore it different in the two countries. In the
was not a ‘defining event’ as it was in United States, the war was associated,
especially by younger respondents, with
most of the developed countries around
the prosperity that followed the war, an
the world. association that does not figure in British
In contrast, in Russia, not only was responses at all. More interestingly,
there a Second World War cohort, but mentions of patriotism and the common
the cohort spanned 12 years, from the spirit of the wartime years is also absent
from British recollections’.
beginning of the war in 1941 until the
death of Stalin in 1953. The Iron Curtain This shows that while many countries
was drawn and the impact of the war may experience the same defining
remained. In Russia, the Second World moments, socioeconomic, cultural,
War was such an overwhelmingly geographical, religious and political
important ‘defining event’ (23 million differences can profoundly change the
killed) that its influence lingered more impact that these events have from
than a decade — well after other country to country. In Britain, the War
countries had moved on. Thus different was actually fought on their soil. The
cultures and histories can have very sound of air raid sirens was often heard,
different cohort structures, but those
with similar cultures and histories often
share similar cohort classifications. Table 2 Examples of global defining moments

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.

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Charles D. Schewe and Geoffrey Meredith

Table 3 Examples of country-specific or regional defining moments

Event* Date Country affected

John Profumo scandal 1963 UK


Nelson Mandela’s imprisonment and 1964 and 1990 South Africa
release
Cultural Revolution 1966–1976 China
Six Days War 1967 Jordan, Israel and Egypt
Khmer Rouge Rule 1975–1979 Cambodia and South East Asia
Assassination of Anwar Sadat 1981 Egypt
Falklands War 1982 UK and Argentina
Assassination of Olof Palme 1986 Sweden
Tiananmen Square massacre 1989 China
Manuel Noriega’s arrest and extradition 1989 Panama
to USA
Japanese Economic ‘bubble’ bursts 1991 Japan
Irish legalisation of divorce 1995 Ireland

*These events are not ranked in order of importance, 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.

The collectivisation cohort The Great Patriotic War (or Second


This cohort came of age from 1929–1940 World War) cohort
and corresponds to the Depression This cohort spanned 12 years, from the
cohort in the USA. Cohort members beginning of the War in 1941 to Stalin’s

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Table 4 Russian cohorts

Cohort Born Coming of age Age in 2004 Defining moments Key cohort values

Collectivisation 1912–1923 1929–1940 81–92 • Collectivisation of agriculture • Dedication to party


• Nationalistic
• Believe in and rely on state
• Suspicious of West
Journal of Consumer Behaviour Vol. 4, 1, 51–63 #Henry Stewart Publications 1472-0817

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

Segmenting global markets by generational cohorts


• 1991 communist coup attempt
Post-Soviet 1975 and after 1992– 29 and under • Privatisation and economic reforms • Self-sufficient
• Chechnya War • Cynical, streetwise
• Stock market collapse • Materialistic
• Amoral
• Actively want to leave Russia
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Charles D. Schewe and Geoffrey Meredith

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

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Segmenting global markets by generational cohorts

defining moments include the Russia. It will be interesting to see in a


Chernobyl nuclear disaster, the first few years if the devolution of Russian
parliamentary elections, the fall of the society into one run by organised and
Berlin Wall, Boris Yeltsin’s election as white-collar criminals will result in an
president, the dissolution of the Soviet even more cynical value structure in this
Union and the 1991 communist coup cohort or the one that follows it.
attempt. Unlike Generation X in the
USA, the perestroika cohort has played Brazil: The Second World War played
an active role in the momentous social a minor role
and political changes sweeping the Like Russia, Brazil was found to have
country. They attended political rallies, six distinct cohorts (see Table 5).
advocated parliamentary reforms, and Interestingly, while the Second World
more. This cohort values political War shaped the majority of young
activism, is opposed to centralised people coming of age in the early 1940s
authority, prefers to live outside of in North America, Europe and Asia, in
Russia and tends to be somewhat Brazil, it had little impact. As a result, as
materialistic. noted earlier, the country has no Second
World War cohort. Instead, it has the
The Post-Soviet cohort Vargas-era cohort, whose members
This cohort began coming of age in came of age from 1930 to 1945. This
1992, and they are largely still a work in cohort was named after Getulio Vargas,
progress. This cohort roughly a charismatic leader who ruled the
corresponds to the N Generation cohort country with an iron fist through two
in the USA. The post-soviet cohort coups d’état attempts and two
witnessed the dissolution of the Soviet constitutions. The middle class resented
Union, followed by hyperinflation, the economic pressure of this era, the
privatisation and economic reforms, the terror with which they lived, the
devaluation of the ruble, which wiped persecution of political opponents, and
out people’s life savings, the the repression of all kinds of dissent that
confrontation between Boris Yeltsin and was inherited from the Great
the Russian parliament, the Chechnya Depression of the late 1920s. In fact, the
War, the bitter 1996 presidential middle class resented the economic
campaign, the increasingly erratic pressure more than the authoritarian
behaviour of Boris Yeltsin and the 1998 regime. At the same time, the masses
stock market crash. One thing that sets surrendered entirely to Vargas’ skills as
this group apart is the lack of parental a strategist. Protective labour laws and
supervision. Their parents were too other benefits counterbalanced extreme
preoccupied with what was going on poverty and massive unemployment.
around them to pay much attention to Their access to formal education was
their children, and teachers did not limited. The scarcity of industrialised
know how to teach history and social products led them to put more
science during a time when the official emphasis on ‘being’ rather than
dogmas suddenly lost their meaning. ‘having’. Lack of imported goods
Many have called this cohort ‘an hindered dreams of consumption. Due
abandoned generation’ because they to massive, biased government
have become lost in the shuffle. As a propaganda and the exaltation of
result, gang and drug activity have been national values, members of this cohort
on the increase among Russian youths developed a strong cult of nationalism
in recent years. Key cohort values as well as a perception of the state as the
include self-sufficiency, cynicism, being solution for all national problems. In
streetwise, materialism, amoralism, and general, people of this cohort are
a strong interest in living outside of nationalistic, look to the state for

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Charles D. Schewe and Geoffrey Meredith


Journal of Consumer Behaviour Vol. 4, 1, 51–63 #Henry Stewart Publications 1472-0817

Table 5 Brazilian cohorts

Cohort Born Coming of age Age in 2004 Defining moments Key cohort values

Vargas era 1913–1928 1930–1945 76–91 • Vargas’ coup • Nationalism


• State as a solution
• Being is better than having
• Acceptance of authority
Post-war 1929–1937 1946–1954 67–75 • Vargas’ deposition/Dutra’s election to President • Moral tradition
• Value of having
Optimism 1938–1950 1955–1967 54–66 • Vargas’ suicide/President Kubitschek’s election • Country of the future
• Youth culture and looking abroad
The Iron Years 1951–1962 1968–1979 42–53 • Dictatorship instituted • Belligerence
• Social crisis • Alienation, silence
• Institutional Act No. 5 (abolished democratic congress) • Myth of grandiosity
• Value of education
The Lost Decade 1963–1974 1980–1991 30–41 • Amnesty for activists • Fear
• End of economic growth • Frustration
• Materialism
• Individualism
• Hopelessness
Be on your own 1975 and after 1992–present 29 and under • Government crisis • Self-sufficiency
• President Collor’s impeachment • Consumerism
• Change in currency to real • Recovery of ethical and moral values
Segmenting global markets by generational cohorts

solutions, accept authority, and feel that accomplishment was diminished to a


having experiences is better than having myth. Key cohort values that this era
material possessions. produced were a sense of belligerence
Another interesting Brazilian cohort is about government institutions,
the Iron Years. Its members came of age alienation, repressed silence as a means
from 1968 to 1979. Defining moments of survival, pride in what was Brazil’s
include a widespread social crisis that myth of success and the importance of
resulted from the political reins being education, which was seen as a way out
taken over by a dictatorship, and the of the social crisis.
implementation of Institutional Act No. Because each cohort group has
5, which abolished the democratic unique values and experiences,
congress. While the leading-edge baby marketers need to treat them with care
boomers in the USA were enjoying ever in designing products, planning
greater freedoms and liberalism, the marketing executions and developing
Iron Years cohort in Brazil lived through promotional pitches. Considering the
a repressive and violent regime of Iron Years cohort, because of the
military dictatorship that often led to distrust that comes with alienation,
hostility or alienation. Civil rights were products targeted towards this group
significantly reduced, censorship was should be filled with guarantees and
instituted and political opposition was promotions should stress the quality of
not tolerated. Peaceful protest was the product’s features. Tag lines could
everywhere in the form of lyrics of associate the product with the cohort’s
popular music and in the people’s sense of lost freedom. For example, ‘The
emphatic and steadfast silence. In order Bank of Brazil will provide you freedom
to counterbalance its own from worry about the safety of your
authoritarianism, the military regime hard-earned money!’ or ‘Grab for
was lenient towards violations of freedom . . . Brahma Beer is your
traditional ethical and moral values. The accomplice in the Great Escape!’. Also
dictatorship used sports, festivals, playing off the concern for freedom,
porno-farce movies and soap operas to products that hint of finding new ways
camouflage its savagery, resulting in a to use them reflect an opportunity to
system of programmed alienation of the free-think, something this cohort was
population. Taking advantage of others denied during its oppressed coming-of-
was praised as a virtue on television. age years. Since cohort members saw
The harmony of interpersonal the economic surge accompanied by
relationships was definitely broken, as social injustice and the hope for better
wariness, suspicion and cynicism times ahead, marketers might use
became, for the most part, substitutes spokespersons and product
for genuine, candid and honest relations demonstrators who appear ahead of
among people. While these social their time to play off the optimism that
problems were running rampant, the this cohort still has about the future.
dictatorship provided economic Some suggestions for different
prosperity. There was increased marketing approaches to each of the
economic growth, an increase in Brazilian cohorts are shown in Table 6.
imports and exports, rapid
industrialisation and urbanisation, huge CONCLUSION
investments in large infrastructure From a marketing perspective, this
projects and an expansion of the fresh, innovative way of segmenting
educational system. But these economic consumers by cohorts may be a more
improvements were viewed as taking effective technique than those presently
place at the expense of social justice. As employed. Consumers are savvier than
a result, the sense of economic ever before, demanding personal

Journal of Consumer Behaviour Vol. 4, 1, 51–63 #Henry Stewart Publications 1472-0817 61


Charles D. Schewe and Geoffrey Meredith

Table 6 How to tap the Brazilian market

Cohort Marketing implications

Vargas-era cohort • Provide detailed information about the products


• Adopt entertaining marketing communications backed by Brazilian
culture and conditions
Post-war cohort • Provide products that may benefit the whole family
• Emphasise simplicity
• Show the virtues of those who prefer the products and use
spokespersons who appear to be honest
Optimism cohort • Show people actually using the products
• Avoid putting pressure on buyers
• Occasionally remind potential buyers of the country’s economic
progress, its industries and national pride
The Iron Years cohort • Offer guarantees of all kinds
• Develop promotions based on the idea of freedom
• Use endorsers who appear to be ahead of their time and who are
shown as users of the products
The Lost Decade cohort • Emphasise fashionable products and fashionable users
• Favour products that can benefit their users’ individuality
• State that everybody in the crowd already has the products
• Employ spokespersons of high visibility who transmit an image of
honesty
Be on your own cohort • Stress variety, as tailor-made products will appeal to this group
• Resort to one-to-one marketing with a personal reply whenever
possible
• Use global themes in promotions
• Avoid erotic appeals
• Associate promotions with honesty values
• Favour mechanisms that allow bargaining (eg variable price
structure)

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
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