Target Market Solutions in South African Online Businesses: The Generational Effect

Questions arise whether demographic, socio-economic and motivational criteria based on, inter alia, gender, income, education as well as generational cohort alignment can assist online businesses in making optimal target market decisions. Are there alternative target markets in the growing online community? Quantitative research with 111 respondents telephonically interviewed in the Gauteng province of South Africa provided the data. Two generational cohorts of consumers were identified that are buying online, namely the generation X&Y cluster and the Baby Boomers cluster. Generation X&Y is the larger group but has lower income levels. Both groups are well-educated with more male shoppers going online. Online businesses should acknowledge the emergence of the Baby Boomers as a viable force in online shopping as they have sufficient disposable income. They are the leading buyers of books, travel tickets and even electronic equipment and computers. Only in the apparel category is Generation X & Y the leading online buyers. Online retailers should keep track of generational online buying behavior as this is a dynamic environment where online businesses could easily misjudge their target market.