Analysis of the store choice of generation Y in the Austrian food retail market

Individuals of generation Y as individuals of every other generational cohort have certain characteristic traits that define them and differentiate them from other cohorts. Marketing practitioners and marketing management books use this segmentation technique, because values and attitudes of generational cohorts influence their consumption- and store choice behavior. Due to the growing importance of generation Y as customers, understanding their store choice behavior is of utmost importance to practitioners in a highly competitive industry such as food retail. The objective of the thesis is to elaborate on the store choice of generation Y individuals in the food retail market in Austria. To fully elucidate the research questions, the thesis (1) firstly discusses typical characteristic traits of generation Y individuals, (2) secondly explores different store choice models and factors influencing store choice decisions and finally (3) analyzes generation Ys store choice in the Austrian food retail market. The overall aim of the thesis is to help understand generation Ys store choice decisions and provide managerial implications to help practitioners effectively target generation Y. To answer the proposed research questions in a comprehensive manner, after discussing current academic literature, the author proceeds to conduct primary research. Therefore, twelve qualitative interviewees are conducted, and two focus groups are hosted. A semi-structured interview approach is used. For the analysis of the empirical study a mixed approach proposed by Mayring is used. Therefore, the transcribed statements are categorized and then each category is summarized. In a supplementary stage, the summarized categories are analyzed using Mayrings method of explication. The thesis presents and discusses the most important and significant characteristics of generation Y that distinguish its individuals from other generational cohorts. The thesis further elaborates on different store choice models and shows the most important factors influencing store choice decisions. Finally, generation Ys store choice behavior is analyzed, and the key influence factors are indicated and explained. The findings of the study lead to five major managerial implications: (1) only implement online shopping using a well-developed system, (2) put an increased focus on regional and organic products, (3) increasingly use technology within the store, (4) focus on quality over product depth and (5) highly value sustainability.