Unveiling the Truth: Debunking Generational Myths with Effective Segmentation

By Johannes Kern

“Are we Gen Z?”

“No we are not”

“Let me check. Oh yes, we are.”

“But what it says here is not how we are… I don’t know anybody in our class who behaves like that”

Such conversations among undergraduate students, trying to figure out their generational identity, highlight the prevailing confusion and uncertainty surrounding generational research. The concept of distinct generational traits has gained significant attention in the research literature, most recently for the so-called Generation Z (Gen Z) – the Digital Natives born between 1997 and 2012 [1]. However, before jumping to conclusions about their leadership approach, such as cutting down on meetings as “staying focused during long meetings is difficult for 34% of Gen Zens” or trying to bring out their full potential by signing them up for more challenging tasks and showing you have higher expectations [2], managers must critically evaluate the scientific rigor and validity of such research. In this article, I argue that generational research is not scientifically robust and instead propose using alternative segmentation models like psychographic and geodemographic systems. By leveraging these alternative approaches, managers can better understand and cater to diverse preferences and behaviors of their current and future workforce.

The Unreliability of Generational Research. A key issue with generational research lies in the inconsistent and contradictory descriptions of prevalent attitudes within a particular generation. Various studies provide conflicting insights, making it difficult to draw accurate conclusions about unique characteristics of a generation. For example, some researchers suggest that Generation Y (born between 1981 and 2000) [3] is primarily driven by career advancement, while others argue that self-realization takes precedence [4]. These disparities raise questions about the reliability and generalizability about generational research findings.

Limited Longitudinal Studies and Comparative Analyses. Long-term studies comparing generational attitudes and behaviors are lacking. While some research explores changes in attitudes within a particular generation over a specific period, few studies examine whether similar views were prevalent among previous generations during their youth. Additionally, societal changes and shifting cultural norms are not adequately considered. It is crucial to understand whether the differences observed in today’s youth are a result of generational disparities or broader societal shifts affecting all age groups [5].

The Importance of Alternative Segmentation Models. Psychographic segmentation systems, such as Sinus-Milieus [6], and geodemographic segmentation systems like PRIZM (Potential Rating Index by Zip Market), offer valuable insights into individuals’ values, beliefs, and lifestyles. Unlike generational research, these models focus on capturing the inherent diversity within a population. They recognize that preferences and behaviors can vary widely between age groups [7]. By considering psychographic and geodemographic factors, managers can gain a more accurate understanding of their target audience and tailor their leadership strategies accordingly.

Challenging Assumptions about Gen Z. Contrary to popular beliefs about Gen Z, empirical data suggests that their attitudes and preferences do not significantly differ from those of previous generations. Studies debunk the notion that Gen Z is disinterested in leadership roles or lacks dedication to their work [8]. Furthermore, assumptions about heightened self-centeredness and lack of societal engagement are not supported by data [9]. Such findings highlight the inadequacy of generational research in accurately characterizing and predicting specific age groups’ behaviors.

So, what can managers do to navigate the complexities of a diverse workforce without relying solely on generational stereotypes? Here are some actionable points to consider:

  1. Use psychographic segmentation: Understand employees’ motivations, interests, values, and lifestyles using systems like Sinus-Milieus. Tailor strategies and approaches accordingly.
  2. Emphasize individuality and flexibility: Recognize employees’ uniqueness and provide a flexible work environment. Offer options like remote work, flexible hours, and personalized career development.
  3. Encourage cross-generational collaboration: Promote collaboration and knowledge-sharing across age groups. Leverage diverse perspectives for innovation and problem-solving.

By adopting a nuanced and individualized approach, managers can create a thriving work environment that meets the needs of employees across all generations.

Digging Deeper:

[1] Pew Research Center. (2023, May 22). Where Millennials end and Generation Z begins | Pew Research Center. https://www.pewresearch.org/short-reads/2019/01/17/where-millennials-end-and-generation-z-begins/

[2] Survey: Gen Z in the Workplace. (2022, November 22). TalentLMS. https://www.talentlms.com/research/gen-z-workplace-statistics

[3] Goldgehn, L. A. (2004). Generation Who, What, Y? What You Need to Know About Generation Y. International Journal of Educational Advancement, 5(1), 24–34. https://doi.org/10.1057/palgrave.ijea.2140202

[4] Klaffke, M. (2014). Erfolgsfaktor Generationen-Management–Handlungsansätze für das Personalmanagement. In Klaffke, M. (Ed.) Generationen-Management, (pp. 3-25). Springer Gabler, Wiesbaden.

[5] Schröder, M. (2019). Generationen gibt es, sie sind nur unsichtbar. Kölner Zeitschrift für Soziologie und Sozialpsychologie, 71(3), 471–480. https://doi.org/10.1007/s11577-019-00634-6

[6] The Sinus-Milieus are a social model that Milieus arrange people with similar values, a similar lifestyle and a comparable social situation into groups of “like-minded people”. Sinus-Milieus – The gold standard for target group segmentation. (n.d.). Sinus-Milieus – the Gold Standard for Target Group Segmentation. https://www.sinus-institut.de/en/sinus-milieus

[7] Wedel, M., & Kamakura, W. A. (2000). Market segmentation: Conceptual and methodological foundations. Springer Science & Business Media.

[8] Van Dellen, S. A. (2019). Truth or myth? millennial stereotypes, self-image, and engagement in the workplace. University of San Diego.

[9] Schröder, M. (2018). Der Generationenmythos. Kölner Zeitschrift für Soziologie und Sozialpsychologie, 70(3), 469-494.


About the Author

Johannes Kern is a professor of Digital Business Management at DHBW (Baden-Württemberg Cooperative State University) in Lörrach, Germany. He researches, teaches, and consults in the area of Digital Business Models and Digital Transformation. Please contact him via LinkedIn or his Email.


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