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The impact of ICT and digitalization on consumer purchase behaviour of

Millennials as emerging economic and social force

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 151

10 The impact of ICT and

digitalization on consumer
purchase behaviour of Millennials
as emerging economic and
social force
The case of Serbia
Tatjana Mamula Nikolić, Sanja Popovic-​Pantic
and Ivana Muller

10.1 Introduction
Reflections on the first generation in Serbia born into the digital technology
age bring up the following question: How “native” are the Serbian Millennials
really, and how does their web experience influence their consumer behaviour?
Focusing on these two issues and using the information gathered from the
research study, we have designed the “digital-​behaviour segments” model with a
point-​based instrument, which comprehensively classifies Millennial individuals
into four specific groups by their web experience. Leaning on Prensky’s digital
native theory (Prensky, 2001), we have named these groups digital natives, smart
immigrants, not-​so-​flexible immigrants and digital refugees.
The aim of the research study is to identify the values, lifestyles and con-
sumer behaviour of the Serbian Millennial population. In addition, the goal of
the research is to analyse whether there is a significant difference in consumer
behaviour among specific groups of Millennials stratified according to their
web preferences.
The literature used in this chapter as a foundation provides insight into
different definitions of the Millennials, their consumer behaviour, and their
demographic and other characteristics worldwide and in Serbia, with the
aim of providing broader scope to the examination of their role in shaping
state-​of-​the-​art consumption. The literature review highlights the empirical
resource of data related to the Serbian Millennials, presenting their characteristics
which influence consumption and which will be the subject of research in the
next sections.
We then present the methodology used in the stratification of the sample
and description of the strata.
The results and discussion section presents our research findings on the
attitudes and behaviour of the four groups of Millennials according to their
digital activities, e-​commerce habits, food and drink consumption and media

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152  Tatjana Mamula Nikolić et al.

consumption. Also, we present findings on the significance of their differences
in attitude towards consumption of local products vs. foreign products.
Finally, based on the research findings, the Conclusion presents closing
remarks on the impact of digitalization on consumer purchase behaviour of
Millennials in Serbia, identifying which strata, and to what extent, will shape
consumption trends in the future.

10.2  Literature review
The main characteristics of the Millennial generation (according to some
definitions, those who were born in the period between 1980 and 2000) are
primarily an outstanding technological literacy, creativity, high level of educa-
tion, and also high expectations of life and a drive for successful careers which
should fulfil them emotionally. According to Ng and McGinnis Johnson (2015),
different authors have variously labelled this generation, in consideration of
some historical events, as Gen Y, Gen Me, Net Gen, Nexus Generation, and
Millennial Generation (Advertising Age, 1993; Barnard, Cosgrove and Welsh,
1998; Burke and Ng, 2006; Howe and Strauss, 2000; Twenge, 2006). Since the
publication of Howe and Strauss’s (2000) Millennials Rising, interest in the mil-
lennial generation has become widespread, particularly among marketers and
employers (Hoover, 2009). Since they often postpone large purchases and do
not insist on owning real estate and do not mind sharing ownership, they are
sometimes also called the “renter generation” or “economy of sharing” gener-
ation.Thus, some authors think that the new millennial economy is developing
with this generation. They are very curious and eager to gain new knowledge
and experiences and to take active part in the world around them.They quickly
accept new technologies and the Internet, which they use on an everyday basis.
They are active in social networks and blogs and they use applications and
gadgets. Despite the fact that they were born and grew up in times of crisis in
the country, they have become young people with a lot of energy and ideas
who are fond of digital ways of communication.They are a generation of impa-
tient, experimental learners, digital natives, multitaskers and gamers who love
the flat networked world and expect nomadic connectivity 24/​7 (Sweeney,
2006). This new generation has a lifelong engagement with digital platforms,
which present their way of working, learning and living, are aimed at providing
their satisfaction and meeting their expectations, and are related to their values
and behaviours (Mamula and Necak, 2018).
Technological progress brought about big changes in consumers’ behaviour,
markets and marketing over the past century. The technology allows individ-
uals to express themselves and collaborate with others. According to Kotler,
Kartajaya and Setiawan (2010), the rise of three major forces shaped the business
landscape into Marketing 3.0: the age of digitalization, the age of participation
and the age of creative society.
Millennials’ advantage is their outstanding knowledge and use of tech-
nology, which is why they work considerably faster and more productively

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Consumer behaviour of Millennials 153

than their older colleagues.They also have a better approach to issues and prac-
tical solutions, as well as clearly defined goals. The formula for how to address
the Millennials indicates that the approach, as well as the content, needs to
be entertaining, informative, and educational. The greatest effect is achieved
by using personalized and useful messages targeted at resolving imponder-
able questions and ambiguities which evoke emotions and step out of standard
frameworks, offering a “broader picture” (Mamula and Coso, 2015). All these
characteristics encourage and enable Millennials to be much more innovative
than previous generations, thus creating opportunities for faster development
of the country. Innovation as one of the main drivers of economic growth
initiates competitiveness and brings completely new views and approaches to
marketing.
The development of IT leads to the faster development of generations and
each generation represents the characteristics of its period. Each country has
a specific Generation Y, but due to globalization, social media, influence of
Western culture and the speed of changes worldwide, they have become more
similar to each other, unlike the older generations (Stein and Sanburn, 2013).
Millennials born between 1980 and 2000 are the last generation of the twen-
tieth century.This generation is highly educated and technologically connected
compared to prior generations, although there are differences in attitude, values,
behaviour, lifestyle and ethnic diversity (Taylor and Keeter, 2010).They are also
called “digital natives”, “net geners”, “netizens”, “homo zappiens” as members
of the first generation growing up surrounded by digital media (Tapscott,
1999; Prensky, 2001; Veen, 2006). Their lifestyle differs from that of “digital
immigrants” who learned to “do technology” later in life.
Being born and raised in a digital world, the Millennial generation are
often called “digital natives”: they “think and process information fundamen-
tally differently from their predecessors” (Prensky, 2001, p. 1), they are “used to
receiving information really fast and they like to parallel process and multi-​task”
(Prensky, 2001, p. 3) and they have blended their online life with their offline
life (Sullivan, 2015).
Opposite to the digital natives, their “predecessors”, so called “digital
immigrants” (Prensky, 2001), are “adapting to the digital technology introduced
during their life time” (Sullivan, 2015). Not all digital immigrants fit into a
single category. Prensky differentiates between “smart adult immigrants”, who
“accept that they don’t know about their new world and take advantage of their
kids to help them learn and integrate”, and “not-​so-​smart (or not-​so-​flexible)
immigrants”, who “spend most of their time grousing about how good things
were in the ‘old country’ ” (Prensky, 2001, p. 4).
Millennials as consumers are taking over market trends in Serbia. According
to official estimates of the population on 31 December 2017 (Statistical Office
of the Republic of Serbia), there are 1.8 million members of Generation Y in
Serbia (born between 1980 and 2000), which makes 25.7 per cent of the total
Serbian population. At that point, they were on average 28 years old; 51 per cent
of them were male and 49 per cent female.

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154  Tatjana Mamula Nikolić et al.

By 2020, according to the estimates of the Statistical Office of the Republic
of Serbia from 2016, Serbian Generation Y will be a dominant working popula-
tion with 48 per cent, followed by Generation X (40 per cent) and Generation
Z (9 per cent). The same goes for Millennials worldwide; by 2025 the global
workforce will be dominated by Millennials (75 per cent).
Doubtless, the Millennials represent an emerging economic force.They have
purchasing power in the global market, influencing, at the same time, the global
trends in consumption and the global economy in general. Technology affects
the lives of Millennials, and their way of life determines and shapes their con-
sumer preferences.To obtain a better overview of this impact in Serbia, we have
examined data based on research on different consumer behaviours among the
Millennials in Serbia.

10.3  Methodology and materials

10.3.1  Empirical sample and data used

This study uses a quantitative face-​ to-​face (F2F), paper-​
and-​pencil (PAPI)
research approach with a stratified random sampling method, including 1,000
people in Serbia born between 1980 and 2000. The sample is nationally rep-
resentative, reflecting the population structure of the Serbian Generation Y
according to gender, age, region and type of settlement (urban/​rural).
Two questionnaires are used as a research instrument for gathering infor-
mation from the respondents. First, the main questionnaire consists of a series
of questions about the Millennials’ lifestyle and goals, media consumption and
digital activities, e-​commerce habits, attitudes toward working, brands and local
products, consumption of Food and drink, free time and socio-​demographic
characteristics. The second one is a self-​assessment questionnaire formulated
according to the five-​point Likert scale, with 37 statements covering personal
attitudes and habits of the Millennial generation in Serbia.

10.3.2  Empirical settings/​methods

Although the Millennials have many common characteristics, they do not
represent a homogeneous entity. These young people have found themselves in
different life stages and they have grown up exposed to different digital impacts.
Therefore, we have classified the sample of 1,000 respondents in four specific
strata by their web experience, in order to identify intensity of the consump-
tion of each group and existence of interdependence between their consumer
behaviour and their web experience.
As an initial step, we identified the key statements and questions
describing typical characteristics and behaviour of the digital natives and
also the digital refugees as opposite to the natives. Each individual scores
one point for each characteristic that applies to him or her. At the second
stage, these two score-​variables were intersected and two clear segments

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Consumer behaviour of Millennials 155

were defined:  the digital natives (possess at least 60 per cent of all listed
digital native characteristics) and digital refugees (possess at least 60 per
cent of all listed digital refugees characteristics). As the third step, we applied
“common sense” validity check, running cross-​tab analysis through the ques-
tionnaire. According to these analyses, we have made several adjustments to
the selected key characteristics.
Finally, we have selected the following 12 key characteristics for digital
natives and 5 key characteristics describing digital refugees.
Digital native characteristics:

1 Plays video games on a computer, mobile phone or tablet in his/​her

free time.
2 Uses the Internet on a daily basis.
3 Is a multitasker  –​almost always uses two or more electronic devices
simultaneously.
4 Almost always visits either the website of a product or company, or profile
of a product or company on social networks, before purchasing a product.
5 Buys stuff online.
6 Owns a smartphone and at least two other devices (desktop computer,
laptop, tablet, netbook, e-​book reader, music player or smartwatch); or
owns a VR headset or game console.
7 Has accounts on at least two out of the following social networks: Facebook,
Instagram,YouTube and Snapchat.
8 Uses daily at least two out of the following social networks:  Facebook,
Instagram,YouTube and Snapchat.
9 Posts, shares content, follows companies and brands, likes, comments or
shares company announcements in at least one of the social networks; or
has shared his/​her own positive as well as negative experiences regarding
some products, services or companies in one of the social networks.
10 Keeps his/​her smartphone next to his/​her bed while sleeping.
11 The statement “I can’t imagine my life without modern technology” fully
applies to him/​her.
12 The statement “I couldn’t live without a smartphone” fully applies to
him/​her.

Digital refugee characteristics:

1 Does not use a computer at all (does not spend time on a computer, does
not play video games, does not watch movies on a computer), and does not
play video games on a cell phone or tablet.
2 Uses the Internet less than once a month or never.
3 Owns a simple cell phone or does not own any of the devices mentioned
above (in characteristic number 6 of the digital natives).
4 Does not use any of the social networks.
5 Does not buy and does not intend to buy stuff online.

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156  Tatjana Mamula Nikolić et al.

Digital Refugee characteristics

Score
0 1 2 3 4 5
0
1
2 Not-so-flexible Immigrants
Digital Native characteristics

3 Digital Refugees
4
5 Smart Immigrants
6
7
8
9
10 Digital Natives
11
12

Figure 10.1 Classification scheme of Millennials according to their web experience.

We have defined the “core” group of natives (Millennials who scored at

least 8 out of 12 points for digital native characteristics) and the “core” group
of digital refugees (Millennials who scored at least 3 out of 5 points for digital
refugee characteristics). As the final step, based on the contingency table for
these two score-​variables, we have defined four segments (digital natives, smart
immigrants, not-​so-​flexible immigrants and digital refugees), using the scheme
in Figure 10.1, including the “common sense” validity check.
For the purpose of further analysis of consumer behaviour and the impact
of Millennials’ web experience, we also compare the group of digital natives, on
the one hand, with the group of all other Millennials (digital immigrants and
digital refugees together). To achieve a better overview of media consumption,
we consider digital natives and smart immigrants as one group with similar
behaviour regarding consumption and preferences regarding the web. Not-​so-​
flexible immigrants and digital refugees are less dependent on the web and have
similar habits regarding consumption.
The statistical analysis has been performed using the SPSS statistic software
package. A non-​parametric Chi-​square test of independence has been carried
out to examine the relationship between familiarity with digital systems and
different elements of consumer behaviour. Comparisons between proportions
have been performed using a two proportion Z-​test. One-​way analysis of
variance (one-​way ANOVA) has been used to determine whether there are
any statistically significant differences between the means. The Levene test for
equality of variances and post-​hoc tests Scheffe and Tamhane have been run to
confirm where the differences occurred between the groups. For all performed

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Consumer behaviour of Millennials 157

analysis, the level of significance (alpha level) has been set at 0.05 (95 per cent
confidence level).

10.4  Results and discussion

10.4.1  Characteristics of Serbian Millennials

According to the results of the representative survey of Millennials in Serbia,
over half of them are either highly educated (34 per cent) or are studying at the
moment (21 per cent). One third of Serbian Millennials are already married
(32 per cent) and almost two thirds of households headed by Millennials already
have children (65 per cent). Serbian Millennials are also very traditional –​84 per
cent identify themselves with the statement,“The most valuable thing you can do
in life is to have your own family”. Despite this fact, the majority of singles (72 per
cent) and also half of all Serbian Millennials, are still living with their parents, and
this also influences their behaviour and purchasing patterns. The most important
Millennial life goals are: to learn and develop, to gain new experience, to have a
successful career, as well as to be a good parent and to have a successful marriage
(each statement is chosen by about 40 per cent of Millennials).
Regarding their dream jobs, they prefer:

• To be self-​employed (56 per cent) rather than “work for someone else”
(27 per cent).
• To work in one company for a longer period (65 per cent) rather than to
change companies (17 per cent).
• To work in a state-​owned company (48 per cent) rather than in a private
one (31 per cent).
• To have stable (49 per cent) rather than flexible working hours (38 per cent).
Thirteen to twenty-​ one per cent of Millennials do not have preferences
regarding these statements (do not mind).
More than nine out of ten Millennials in Serbia are online everyday (91 per
cent), and 94 per cent are using social networks. More than eight out of ten
own smartphones (82 per cent); 86 per cent keep their mobile phones next
to the bed when sleeping and 60 per cent cannot imagine their life without
mobile phones or modern technology. Over 40 per cent almost always gather
information through different online channels (product websites, social media
and reviews) before purchasing a product.

10.4.2  Digital behaviour segments model

Table 10.1 gives an overview of the size of the different Millennial groups.
We have explored the attitudes and behaviours of the four groups of
Millennials in a few selected topics relevant for the determination of new trends

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158  Tatjana Mamula Nikolić et al.

Table 10.1 The size of different Millennial groups according to their web experience

Number of respondents Structure (percentage)

n 4 groups model 2 groups model 2 groups model

Digital natives 251 25.1 25.1 81.0

Smart immigrants 559 55.9 74.9
Not-​so-​flexible immigrants 140 14.0 19.0
Digital refugees 50 5.0
Total 1000 100.0 100.0 100.0

in consumption in the global market: digital activities, e-​commerce habits, food

and drink and media consumption. Also, we want to explore whether there are
any significant differences in their attitudes to consumption of local products
vs. foreign products.

10.4.3  Digital activities

The Millennials in Serbia seem to be rather “non-​multitasking”  –​65.4 per
cent claim to use two or more electronic devices at once sometimes, rarely or
never. More than two thirds of the interviewed Millennials visit always or often
product/​company websites, and 41.5 per cent visit always or often product/​
company social network profiles before buying a product. Over one third of
Serbian Millennials (35.1 per cent) never read leaflets sent to their home before
buying a product. This behaviour is significantly most characteristic of digital
refugees (68.0 per cent).
Compared to all other Millennials, who are less familiar with digital systems,
the digital natives show significantly different behaviour in the steps that they
undertake before buying a certain product. They need to know more about
the product before they decide to buy it. As shown in Table 10.2, more than
half of digital natives always or often read product reviews and information
from advertising materials at POS (point of sale) before they decide to buy.
90.4 per cent always or often visit product/​company websites (on the other
hand, two thirds of all other Millennials take the same action) and 63.3 per cent
visit product/​company social network profiles before buying a product (on the
other hand, significantly fewer, 34.2 per cent, of all other Millennials take the
same action).

10.4.4  E-​commerce  habits

An interesting fact is that in 2009 only 5 per cent of the population used online
shopping in Serbia. Today, almost ten years later, 31 per cent of the Serbian
population does it, according to Eurostat. Being far from the European peak,
and it could even be said near the bottom of the list, Serbia is behind Slovenia

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Consumer behaviour of Millennials 159

Table 10.2 Digital activities and actions taken prior buying a product

How often do you? Digital Digital immigrants Millennials

Always & Often natives and refugees total

Do multitasking (using two or more 61.4%* 25.7% 34.6%

electronic devices at once)
Visit product/​company website before 90.4%* 63.2% 70.0%
buying products
Visit product/​company social network 63.3%* 34.2% 41.5%
profiles before buying products
Read product reviews before buying 53.6%* 27.3% 33.9%
product
Read information from advertising 50.0%* 29.6% 34.7%
materials at POS
Read leaflets before buying product 31.9%* 16.0% 20.0%
Read information from advertising 36.5%* 20.9% 24.8%
materials received via e-​mail
Pay attention to advertisements on the 40.2%* 22.9% 27.2%
street (e.g. billboards, posters, etc.)

Note: *Sgn. differences compared to digital immigrants and refugees (95% conf. level).

regarding online sales in the region, where 46 per cent of the population pur-
chase online. However, Serbia is ranked better than Croatia, which has 2 per
cent less than Serbia (29 per cent). Behind Serbia there is Bulgaria with 18 per
cent and Romania with 16 per cent. Macedonia and Montenegro are at the
bottom, with only 15 per cent and 13 per cent respectively (Eurostat, 2017;
Bejatovic and Mamula, 2018).
According to our study, over half of Serbian Millennials still do not pur-
chase online (51 per cent). Taking into account their familiarity with digital
systems, we can see a significantly different picture (Figure  10.2):  94.3 per
cent of all online buyers are either digital natives or smart immigrants. Also,
more than 80 per cent of digital natives are online buyers. On the other hand,
over 80 per cent of not-​so flexible immigrants and over 90 per cent of digital
refugees do not purchase online.
Over half of online non-​buyers will also stay non-​buyers (53.4 per cent, or
27.2 per cent of the total), according to their future plans. Smart immigrants
are going to make the biggest step into online purchase: 56.8 per cent of these
online non-​buyers are planning to start purchasing online. The future of digital
refugees is to stay non-​buyers: 84.8 per cent of non-​buyers do not plan to start
purchasing online.
A Chi-​squared test shows a significant dependence between purchasing
online (present and future) and familiarity with digital systems (p<0.01). A Z-​
test on the 95 per cent significance level shows that at the moment, as well as
in the future, there are significantly more digital natives among online buyers
than natives among people who do not purchase online (now: 41.6 per cent
vs. 9.2 per cent, future: 32.0 per cent vs. 6.6 per cent) (Figure 10.3). Digital

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160  Tatjana Mamula Nikolić et al.

100%
7.2%
90% 23.3%
27.2% 11.6%
80%
70% 61.2%
60% 23.7% 30.6% 78.0%
50%
40% 81.3%
30% 21.6%
49.0% 46.2%
20%
14.0%
10% 17.3%
8.0%
0%
Serbian Digital natives Smart Not-so-flexible Digital refugees
Millennial immigrants immigrants

Online buyers Future Online buyers Future Online non-buyers

Figure 10.2 Millennials as online buyers: the present and the future.

100% 0.8% 1.5%

4.9% 9.0% 7.4%
90% 14.3%

80% 22.7%
70% 52.7% 31.3%
60% 59.0%
50%
40% 59.0%
30% 47.8%
20% 41.6%
32.0%
10%
9.2% 6.6%
0%
Online buyers Online non-buyers Future Online Future Online non-
buyers buyers

Digital natives Smart immigrants

Not-so-flexible immigrants Digital refugees

Figure 10.3 Online shopping within millennial groups: the present and the future.

immigrants and digital refugees are now more non-​buyers in e-​commerce.

Hereafter, being an online non-​ buyer will still apply to not-​
so-​
flexible
immigrants and digital refugees, but it will change for smart immigrants in
the future:  we will have significantly more smart immigrants among online

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Consumer behaviour of Millennials 161

buyers than smart immigrants among people who do not purchase online
(now: 52.7 per cent vs. 59.0 per cent, future: 59.0 per cent vs. 47.8 per cent).
The most popular products, which about 70 per cent of Millennials in
all four groups claim to purchase currently online, are clothes, shoes, fashion
accessories and jewellery. Other popular products that Serbian Millennials buy
online are electronic devices, telephones and computers (software and hard-
ware), as well as books and magazines.
When they purchase online, no matter how familiar they are with digital
systems, 80.8 per cent of Serbian Millennials claim to pay cash on the delivery
of goods. This way of payment makes up almost 50 per cent of all payment
methods mentioned in a multiple-​choice question. The second and the third
payment choices for almost 30 per cent of Millennials are to pay directly to the
seller by postal payment and to pay with cards (debit or credit cards).
In general, Serbian Millennials use on average 1.7 different payment
options for their online purchases. Digital natives use on average 1.9 and smart
immigrants and digital refugees on average 1.5 payment options.
E-​banking or m-​banking is used as a payment choice for online purchases by
13.3 per cent of the interviewed Serbian Millennials. This is somewhat higher
among digital natives at 18 per cent (9.8 per cent for digital immigrants and
refugees). PayPal as a payment choice is chosen by 12.7 per cent of digital
natives, as opposed to 6.6 per cent of digital immigrants and refugees who use
this payment option when buying online.
Among all the things the Serbian Millennials prefer to spend money on,
regardless of the price, food, then clothes and shoes, occupy the first two places,
followed by travelling and then gadgets and technology (Table 10.3).

10.4.5  Attitude towards local products

Four different statements are used on the 5-​ point Likert scale (1= com-
pletely disagree to 5= completely agree) to measure the attitude of the Serbian
Millennial generation towards purchasing local and foreign products. Significant
differences in average attitude between groups are measured at 95 per cent
conf. level with one-​way ANOVA (including the Levene test for equality of
variances and post-​hoc tests Scheffé and Tamhane).
Comparing the mean scores (Table  10.4), we can say that digital natives
agree significantly less than not-​so-​flexible immigrants and digital refugees
that foreign products should not be purchased because it affects the Serbian
economy and contributes to rises in unemployment. On the contrary, digital
refugees agree significantly more than natives and smart immigrants with this
statement (p<0.01, equal variances, Scheffe post-​hoc test).
Similar results are obtained for the statement, “Maybe it costs more in the
long term, but I like to support local products”. Digital natives agree signifi-
cantly less than not-​so-​flexible immigrants and digital refugees that although in
the long term the costs may be higher, they like to support local products. On

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162  Tatjana Mamula Nikolić et al.

Table 10.3 Millennial buying preferences: digital natives vs. all other Millennials

I prefer to buy (spend money on) no Digital natives Digital Millennials

matter the price* immigrants total
and refugees

Food 17.1% 21.8% 20.5%

Clothes and shoes 20.3% 19.6% 19.8%
Travelling 12.1% 10.5% 10.9%
Technique, technology 11.5% 7.4% 8.5%
Entertainment (going out, concerts) 7.7% 7.0% 7.2%
Things for children 5.1% 7.6% 7.0%
Other 26.2% 26.1% 26.1%
Total answers 703 1979 2682

Note: *Multiple-​choice question.

Table 10.4 Average attitude toward local products within millennial groups

Average Digital Smart Not-​so-​ Digital Millennials

(1= completely disagree natives immigrants flexible refugees total
5= completely disagree) immigrants

Foreign products should not 2.57* 2.76 3.05 3.36* 2.78

be purchased because it
affects the Serbian economy
and contributes to the
unemployment increase
Maybe it costs more in the 3.03* 3.14 3.34 3.66* 3.17
long term but I like to
support local products
Only foreign products 2.61 2.74 2.84 2.96 2.73
that are not produced in
our country should be
purchased
Local products should be 2.81 2.89 2.93 3.22 2.89
purchased because they are
less polluting

Note: *Sgn. differences on 95 per cent conf. level.

the other hand, digital refugees agree significantly more than digital natives and
smart immigrants with this statement.
It is also interesting to consider their behaviour in consumption of specific
groups of fast-​moving consumer goods.

10.4.6  Foods and drinks and free time

This survey shows that more than 9 out of 10 Millennials in Serbia eat cooked
meals every day or at least a few times a week (Table 10.5). Also, 9 out of 10

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Consumer behaviour of Millennials 163

Table 10.5 Regular consumption of food and drink among Millennials

How often do you consume each of the following Digital Digital Millennials
products? At least few times a week I eat/​drink natives immigrants total
and refugees

Sweets 79.7% 77.3% 77.9%

Crisps and salty snacks 59.8% 58.9% 59.1%
Fruits 77.3% 79.0% 78.6%
Vegetables 86.9%* 91.3% 90.2%
Cooked meals 90.8% 93.3% 92.7%
Fast food 55.8%* 40.9% 44.6%
Carbonated soft drinks 54.6%* 46.7% 48.7%
Natural juices 49.8% 50.2% 50.1%
Beer 25.5% 26.7% 26.4%

Note: *Sgn. differences compared to digital immigrants and refugees (95 per cent conf. level)

Table 10.6 Regular consumption of free time among Millennials

At least once a week I go out to Digital Digital Millennials

natives immigrants total
and refugees

Cafes, bars, pubs 62.9% 51.3% 54.2%

Fast food restaurants 41.4% 26.8% 30.5%
Taverns or clubs 23.9% 19.2% 20.4%
Restaurants (excl. fast food) 12.4% 6.5% 8.0%
Concerts/​cinema/​theatre/​exhibitions Fewer Fewer than Fewer
than or or equal to than or
equal to 1% each equal
1% each to 1%
each

members of the Serbian Generation Y consume vegetables regularly and almost

8 out of 10 consume fruits. But at the same time, almost half of the Millennials
in Serbia eat fast food and drink carbonated soft drinks every day or at least a
few times a week. For almost 8 out of 10 sweets are regularly “on the menu”.
There are significantly fewer digital natives in Serbia who eat vegetables
regularly than among other Millennial groups. Digital natives consume fast
food and carbonated soft drinks regularly at a significantly higher level.
Considering different ways of spending free time (Table  10.6), the study
shows that over half of the interviewed Serbian Millennials claim that they
regularly go out to cafes, bars and pubs (63 per cent among digital natives) and
almost one third eat at fast food restaurants (41 per cent among digital natives).

10.4.7  Media consumption

Internet and TV are two media channels which have the highest usage frequency
among Serbian Millennials (Figure 10.4). Almost all interviewed Millennials are

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164  Tatjana Mamula Nikolić et al.

2%
Internet 97% 1%

TV 86% 11% 3%

Radio 68% 25% 8%

Daily Newspaper (online) 66% 23% 11%

Daily Newspaper (print) 31% 50% 19%

Weekly Magazines (print) 8% 64% 28%

0% 20% 40% 60% 80% 100%

Every day or at least few times a week Once a week or less often Never

Figure 10.4 Millennial consumption of different media channels.

using the Internet (96.7 per cent) and 86.2 per cent watch TV every day or at
least a few times a week.
Among six observed media channels, weekly magazines (print) take the last
place with less than 10 per cent of Millennials claiming to use this medium
every day or at least a few times a week. At the same time, printed weekly
magazines have the highest number of non-​users (27.6 per cent).
Figures  10.5 and 10.6 represent media consumption of a group of digital
natives and smart immigrants on one side (Figure 10.5), compared to a group of
not-​so-​flexible immigrants and digital refugees on the other side (Figure 10.6).
We observe significant differences (95 per cent conf. level) in media usage
between these two millennial groups, i.e. between digital natives and smart
immigrants on one hand and on the other hand not-​so-​flexible immigrants
and digital refugees. There are significantly more digital natives and smart
immigrants regularly using the Internet (99 per cent vs. 85 per cent) and online
daily newspapers (71 per cent vs. 44 per cent). On the other hand, watching TV
or reading printed daily newspapers every day or at least a few times a week is
characteristic rather of the Millennials who are less familiar with digital systems
(not-​so-​flexible immigrants and digital refugees).

10.5 Conclusion
Continuous technology evolution influences our lives, regardless of age. We use
online technologies more and more for work, leisure, online shopping and other
activities. The rapid growth of online technologies usage has “greatly increased
the need for consumers to develop digital competence” (OECD, 2009).

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 165

Internet 99%* 1%*0%*

TV 85%* 11% 4%*

Radio 69% 24% 7%

Daily Newspaper (online) 71%* 20%* 9%*

Daily Newspaper (print) 29%* 51% 20%

Weekly Magazines (print) 8% 65% 27%

0% 20% 40% 60% 80% 100%

Every day or at least few times a week Once a week or less often Never

* Sgn. differences comparing to Not -so-flexible immigrants & Digital refugees (95% conf. level)

Figure 10.5 Media consumption of digital natives and smart immigrants.

Note: * Sgn. differences compared to not-​so-​flexible immigrants and digital refugees
(95 per cent conf. level)

Internet 85%* 10%* 5%*

TV 93%* 7% 1%*

Radio 63% 26% 11%

Daily Newspaper (online) 44%* 36%* 20%*

Daily Newspaper (print) 39%* 45% 16%

Weekly Magazines (print) 8% 61% 32%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Every day or at least few times a week Once a week or less often Never

* Sgn. differences comparing to Digital natives & Smart Immigrants (95% conf. level)

Figure 10.6 Media consumption of Not-​so-​flexible immigrants and Digital refugees.

Note: * Sgn. differences compared to digital natives and smart immigrants (95 per cent
conf. level)

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166  Tatjana Mamula Nikolić et al.

According to recommendations of the OECD’S Committee on Consumer
Policy on consumer education (2009), “it is important to educate parents along
with their children about their responsibilities online, as well as the techniques
that are frequently used online to market products”.
Since the Millennials as a generation are open to new technologies, there is
plenty of space for the implementation of various types of interactive material
using digital channels.The Internet as a channel of communication and business
gives them greater freedom to express and exchange ideas.Therefore, interactive
and on-​the-​job training would provide them with an authentic experience in
the process of learning and work, and what is the most important, learning
through experience is the most effective learning (learning by doing). On the
other hand, while growing up in the Digital Age, the Millennials know more
about digital information and communication technologies than their parents
and teachers. The Millennials take over the role of digital mentors while their
teachers and parents become part-​time students of digital experts.“The ultimate
goal of this reverse mentoring is to promote relationships between and within
the generations, to provide everyone with the possibility to change themselves
and, consequently, their ecology” (Mamula, Radojevic and Slijepcevic, 2016).
The “educated” consumers are the ones who set trends in consumption in
the future. (Euromonitor International, 2019). In Serbia, the digital natives will
take over the role of trendsetters due to the fact that the smart immigrant group
plans to switch to the preferences of the digital natives in the future.Their habits
are oriented towards e-​commerce, which entails that they need to know more
about the product before they are ready to buy it, and it is most likely that not
only the digital natives but also the smart immigrants and the not-​so-​flexible
immigrants to some extent will adopt the same model of behaviour more and
more. The key message to advertisers is to provide more information based on
data, usage experience and testimonials in online advertising, since the smart
immigrants are going to make the biggest step into online purchasing in the
future:  56.8 per cent of these online non-​buyers are planning to start pur-
chasing online.
Considering the sort of products the Millennials buy online, one can con-
clude that they will switch more and more to online shopping. Actually, the
most popular products, that about 70 per cent of the current Millennial online
buyers within all four groups claim to purchase online are clothes, shoes, fashion
accessories and jewellery. Other popular products that Serbian Millennials buy
online are electronic devices, telephones and computers (software and hard-
ware), as well as books and magazines. For the Millennials with strong web
experience (digital natives), online purchasing has become a standard type of
purchasing. Therefore, it is expected that the behaviour of this influential and
rising group of the Serbian population will change tremendously the promo-
tion and the placement of products/​services, as elements of the marketing mix.
Advertisers will restructure their budget spending from offline towards online
advertising, which will be accompanied with more advanced modalities of
online purchasing which have not yet been developed in Serbia.

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Consumer behaviour of Millennials 167

According to the results, a very high percentage of the Serbian Millennials
consume sweets (78 per cent) and carbonated drinks (49 per cent). In the
developed countries over the past ten years, there has been a change in food
trends and this can all be attributed to the Millennials. “Sugar is portrayed as
the new tobacco” said Eric Bergman at Jenkins Sugar Group, to Bloomberg.
Consumers have impacted the transition process of some food industries pro-
duction towards healthier foods. The food industry in Serbia has a chance to
follow these trends and the decisions of policymakers in the health department
could make a positive impact in this area.
Last but not least, the Millennials in Serbia, similarly to their peers in the
rest of the world, are at the age of becoming parents. The Millennials as parents
represent new consumer power, which will also influence the consumption of
a huge range of consumer goods that children use. No matter whether they
are parents or not, the Millennials will force a major change in how the market
looks and behaves in the years ahead.

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