The Impact of Personality and Social Media Use on Price Consciousness: An Abstract

This study, utilizing two national samples of Americans, examines the impact of the Big Five personality traits and social media usage on the level of price consciousness for millennials and baby boomers. Study One, looking only at boomers, finds that those boomers who are more open are less price conscious. Study Two examines both boomers and millennials and found no difference in the level of price consciousness between the two cohorts. Given no difference in the level of price consciousness the two cohorts are combined to test the impacts on price consciousness. The results offer that extroverts are more price conscious, while open individuals are less price conscious. The other Big Five personality traits of conscientiousness, agreeableness and neuroticism have no impact on price consciousness. The amount of social media usage also impacts the level of price consciousness with those spending more time on social media being more price conscious. The study also examines the differences between social media usage by cohort and finds no significant difference in their time spent on Facebook, but there are significant differences in their time spent on Twitter, Instagram and Snap Chat as millennials use all three of these SNS more than baby boomers. The results suggest that while levels of price consciousness do not vary by generational cohort, personality (particularly openness in Studies 1 and 2, extraversion in Study 2) and social media use can impact price consciousness. Marketers can utilize social media to reach price conscious consumers and encourage extroverts to share/respost their business’ price deals so their friends are aware of them. Which social media site, however, that would be more effective for businesses to utilize would vary by cohort. If businesses are trying to reach a broad target market that includes both millennials and baby boomers, Facebook would be the best option, given its popularity across age groups. If marketers are focusing on the millennial market they may also want to have a presence on Instagram and Snapchat. Finally, in terms of differences in personality traits among the two cohort groups, the study found that millennials are more open, but less conscientious, less agreeable and less neurotic than baby boomers.