Consumers Behavior Evaluation and Segmentation of Millennial and Generation Z in Indonesia Instant Noodle Market

Abstract

Intense competition in Indonesia instant noodle market makes instant noodle companies should select their target market appropriately. Currently, many of them are targeting Millennial and Generation Z, due to the keep rising numbers that dominates Indonesia populations. However, before determining the target market, marketers should understand deeply each type of Millennials and Generation Z which can be resulted through segmentation process. Moreover, the pandemic Covid-19 has shifted the consumers’ behaviour in terms of technology usage and purchasing behaviour which also can be reflected in the segmentation result. Based on these issues, there are two research objectives that should be achieved including to examine the shift in instant noodle consumers behaviour and to develop market segmentation of Indonesia instant noodle young consumers. The consumers’ shifting behaviour analysis will be proceed using statistical T-test method, while the market segmentation will be proceed using statistical K-means method. The result shows the media which are mostly used by Indonesia Millennial and Generation Z are Whatsapp, YouTube, Instagram, TV, and Zoom. There is also a significant rise both in instant noodle consumption and total packages purchased after the pandemic strikes. In addition, online purchasing channel specifically, e-commerce is greatly benefited during the pandemic situation. For the segmentation, there are 5 clusters resulted which consist of family caretaker, diner, socialite, health trainer, and explorer.

Exploring the Perceptions of Generations X, Y and Z about Online Platforms and Digital Marketing Activities – A Focus-Group Discussion Based Study

“…So, no company can ignore social media platforms while drafting their marketing and advertising strategies (Joshi et al, 2023). Every generational cohort showed a shift in their technology usage and purchase behavior which has made the marketers to concentrate more on online platforms (Devina & Rahayu, 2022). To learn the online media consumption pattern of different generations.…”