Millennial consumers are more likely to engage in deal-seeking behavior when shopping for CPG items than are older shoppers, according to the results of an IRI survey [pdf].Â Seven out of ten Millennials generally buy the lowest price item while grocery shopping, as compared to 59% of adults overall, per the report. Seniors (46%) are the least likely to purchase the lowest price item.
Millennials are also the most likely generation to buy over-the-counter medication (64%) and beauty/personal care itemsÂ (54%) that are on sale rather than their preferred brand.
Deal-seeking behavior is seen in the use of coupons: half of Millennials frequently opt to buy an OTC medication over their preferred brand because they have a coupon, and 47% do the same with beauty/personal care items.Â
Since, according to research from Epsilon,Â Gen Xers and Baby Boomers have the highest incomes, it stands to reason that price would have less of an impact on their shopping decisions.
Value Impacts Store Selection
Consistent with their deal-seeking behavior, Millennials are also more apt than adults in general to consider the selection of store brands and the presence of a strong loyalty or discount program when choosing a store.
While store brands enjoy strong perceptions among all generations, they’re particularly favored by youth. Indeed, more than 8 in 10 feel that store brands are just as good in quality as national brands, and more than three-quarters feel that store brands are better value than national brands.
Store brands have been gaining market share in recent years, and now account for one-fifth of all FMCG dollar sales, per Nielsen.
What Are Millennials Willing to Pay For?
The IRI study reveals that despite being relatively price conscious oriented, Millennials have an above-average willingness to pay a premium for environmentally-friendly ingredients (37%). That aligns with other research showing a greater sensitivity towards corporate social responsibility and environmental friendliness for youth.
The other area which does the trick with youth? Home delivery. Almost one-quarter (23%) of Millennials surveyed would pay a premium to be able to order online for home delivery, compared to 17% of adults overall.
About the Data: IRI’s data is based on an internet survey of more than 2,000 respondents from a nationally representative panel of participants.