A guest post from Kistin Dziadul, a digital native.

Generation Y consumers gather their information in ways that are quite different than the way Baby Boomers do. We do not read the newspaper, we do not tune in to the hourly news on the television much (except for MTV and E! News), and we change the channel as soon as radio news comes on. Instead, we are turning our attention the the Internet, friends, and families for our information. A Study by Marketing Management students at Western New England college (www.wnec.edu) found that out of 600 people surveyed, 480 reported that they use the Internet to make purchase decisions, and 420 said they turn to friends and family to gather information. This dramatic shift in how Gen Y consumes information about brands shows that trust in a company is not in the hands of that company, but rather in its endorsers and influencers.

I have found that purchase influencers are a huge part of how I shop and learn about brands. If I was going to buy a new phone, I would not rely solely on an advertisement or Consumer Report. Instead, I would find a friend who is either knowledgeable in that product category, or who has that product, and ask for their input. Social networks are a great place to ask these questions and hear back from various friends and family members, Pew Research (link: http://pewresearch.org/pubs/1093/generations-online) reported that 67% of Gen Y’ers use social networks to connect with others.

The diagram below is also from Pew Research (link: http://pewresearch.org/pubs/1093/generations-online). It demonstrates the online habits of each generation. While Internet usage has increased among all generations, the Gen Y habits are of particular interest. Generation Y can also be considered the Echo Generation since we are the offspring of the Baby Boomers, the largest consumer segment in history. Because of this, we clearly are also a large consumer base that will influence the way companies do business and reach out to us. The diagram shows that 84% of these consumers research for products online, and 76% get their news from Internet sources. 71% reported that they are highly likely to make a purchase online.

I strongly encourage every company that has a Generation Y target market to begin Internet and word-of-mouth campaigns. If your main consumers are online doing research on your company, you must ensure you have excellent, searchable content. You must also be on the social networks that your consumers are using so that you can start generating word-of-mouth advertising. If you post fascinating and intriguing information, we will be very likely to spread it. Fads online come to fame as fast as they can fade away, but if you are clever enough and do your research, you can generate tons of buzz in a short amount of time which can boost sales dramatically, especially if about three-quarters of Generation Y consumers are ready to buy online.

If trust in brand information is not gained through advertisements and Consumer Reports anymore, but through the Internet, friends, and family, how do you foresee your company’s marketing endeavors changing in the next few years to adapt?

Kristin Dziadul, a recent college graduate, is a “digital native.”  She blogs daily about Gen Y activities and customs.  Her blog can be found on her website, http://kdmedianow.com