NOSTALGIA AS A SELLING POINT: THE PERCEPTION OF NOSTALGIA MARKETING IN
PURCHASING DECISIONS OF GEN Y
A Thesis
Presented to the Faculty of
College of Business, Administration, and Accountancy
Laguna State Polytechnic University
Main Campus
Santa Cruz, Laguna
In Partial Fulfillment
of the Requirements for the Degree of
Bachelor of Science in Office Administration
ANA MARY C. BARROSA
RENZEL JAKE M. ROMERO
2023
CHAPTER I
INTRODUCTION
This chapter presents the introduction, background of the study, theoretical
framework, conceptual framework, statement of the problem, hypothesis, scope and
delimitations of the study, significance of the study, and definition of terms.
Nostalgia is a powerful and universal emotion that has the ability to transport
individuals back in time, eliciting fond memories and emotions associated with the past. It
has been a consistent and enduring aspect of human psychology, providing comfort and a
sense of belonging through the recollection of cherished moments and experiences. As
what was stated in the article of Cuncic (2023), since nostalgia is frequently connected to
joyful experiences from the past, it can also be conceived of as "the memory of happiness."
In times of sadness or distress, it may provide solace.
In recent years, businesses and marketers have recognized the potential of nostalgia
as a potent tool in shaping consumer preferences and purchasing decisions particularly
among Generation Y, also known as Millennials. According to Tran (2022), the tactic of
using positive, well-known ideas from earlier decades to foster faith in new concepts and
reenergize contemporary campaigns is known as nostalgia marketing. In other words, it's
a strategy for tying the business to a brand that clients already adore and associate with
happy experiences.
Today, a growing number of marketers are appealing to Millennials' fond childhood
memories in an effort to engage and excite them as adults. As of late, everything from
morning cereal to gaming consoles have been promoted to the twenty-something market
using nostalgic strategies such as retro-branding and classic advertisements. As noted by
Alkhafagi (2023), an excellent coping technique for difficult contemporary circumstances
is nostalgia. It has an indirect impact on plans to buy a new product since it makes us think
back on a glorious past that provides life purpose, with these, Dharmasaputro and Achyar
(2021) claimed that the employment of nostalgia in advertising would result in a good
attitude toward advertising, whereas the brand might lead to an increase decisions to
purchase.
Background of the Study
As in earlier decades, nostalgia was still thought of as a sort of sorrow or despair
linked to homesickness until the late 20th century. But as the word became "demedicalized"
and "demilitarized," nostalgia's definition evolved to encompass a broader yearning for the
past (Diego & Ots, 2014). In the context of marketing, in the early 1990s, Morris Holbrook
and Robert Schindler, two marketing academics, conducted a number of studies on
nostalgia marketing. They discovered that customers have a strong preference for aesthetic
products (such as music and movies) from their youth, more specifically those that were
around while they were in their early to mid-twenties (Nnamani, 2021). With this result,
several studies about nostalgia marketing have been conducted and many brands use this
technique.
Brands can leverage nostalgia in a variety of ways to improve their marketing
initiatives. Like for example, Coca-cola. People are familiar with Coca-Cola's recent
reintroduction of Coke in its iconic contour-shaped container. Other companies accomplish
this by releasing goods with vintage or classic designs, or by establishing a relationship
with a well-known historical figure (Clark, 2023). Although there are many other methods
to employ nostalgia marketing, such as in music and movies, Greenberg (2015) in his
article emphasized that it's also crucial to keep in mind that it isn't always about what people
have lost. He quoted that "We can also use nostalgia marketing to promote products or
services that we wish were still around today. You may employ nostalgia marketing, for
instance, by producing an old-school video game inspired by your product line, if you want
to promote a product to millennials, who grew up playing video games.
Singh et al. (2021) emphasized the significance of emotional factors in shaping
preferences, highlighting their undeniable role. Marketers, in their pursuit of fostering
positive associations, often opt for nostalgia marketing, which evokes a sense of longing
for the past, and research has shown that it yields favorable persuasive outcomes.
Consequently, it is customary for nostalgic sentiments to be of a positive nature. When
these enjoyable nostalgic emotions intensify, or when nostalgia becomes more pronounced,
individuals are more inclined to purchase products associated with those nostalgic feelings.
Taken together, these notions and claims lead the researchers to explore the
phenomenon of nostalgia as a selling point and its impact on the purchasing decisions of
Generation Y. It seeks to delve into the perception and effectiveness of nostalgia marketing
as a strategy employed by brands to influence consumer purchasing decisions. By
investigating the ways in which nostalgia is harnessed in advertising and product design,
this research aims to shed light on the underlying motivations and outcomes of
incorporating nostalgia into marketing campaigns.
Theoretical Framework
Conceptual Framework
Independent Variable
Demographic profile of
Dependent Variable
students in terms of:
Consumerism Behavior
● Age
in terms of:
● Gender
● Habitual buying
Social networking
behavior
usage in terms of:
● Impulsive buying
● Facebook
behavior
● Dissonance reducing
● TikTok
buying behavior
● Instagram
● Complex buying
behavior
Figure 2. Conceptual Framework
Figure 2 shows the independent variables are the indicator of social networking
usage in terms of Facebook, TikTok, and Instagram; the dependent variable is the level of
Consumerism Behavior in terms habitual buying behavior, Impulsive buying behavior,
Dissonance reducing buying behavior, and Complex buying behavior.
Statement of the Problem
This study focused on the effect of nostalgia marketing towards purchase decisions
of generation Y. Specifically, it sought to answer the following:
1. What is the perception level of Nostalgia Marketing of Generation Y in terms of :
1.1 Retro-branding
1.2 Classic Advertisements
2. What is the level of influence of nostalgia marketing in purchasing decision of
Gen Y in terms of:
2.1 Purchasing Frequency
2.2 Purchase Intention
2.3 Brand Loyalty
3. Is there a significant effect between perception of nostalgia marketing and
purchasing decisions of Gen Y?
Hypothesis
There is no significant effect on the perception of nostalgia marketing and
purchasing decisions of Gen Y.
Significance of the Study
The study aims to benefit the following:
Marketers and Businesses - Marketers will gain a deeper understanding of how
Generation Y responds to nostalgia-based marketing, allowing them to tailor their
strategies for this demographic effectively.
Marketing Strategist - insights from this research will help them to create more
compelling and resonant marketing campaigns, ultimately increasing sales and brand
loyalty.
Generation Y Consumer – It will benefit them from marketing campaigns that align with
their nostalgia, providing them with more enjoyable and emotionally satisfying shopping
experiences.
Content Creators - they will have insights into what nostalgic elements resonate most
with Generation Y, enabling them to develop content that connects with this demographic
effectively.
Future Researchers - findings from this study can serve as a foundation for further
research in the field, encouraging the researchers for more in-depth investigations into the
role of nostalgia in marketing.
Scope and Limitation of the Study
The focus of the study is to determine the perception of nostalgia marketing in
purchasing decisions of Generation Y age between 25-40 years old at Magdalena Laguna.
The researchers will have a total of one hundred (100) random Gen Y respondents in
different barangays at Magdalena Laguna.
Operational Definition of Terms
The terminologies listed below are operationally defined to comprehend the
following concepts and their use in this study:
Nostalgia Marketing - in this study, it refers to the deliberate use of elements from the
past, such as cultural references, historical artifacts, or memorable experiences, in
marketing campaigns and strategies to evoke positive emotional connections and resonate
with the target audience's sense of nostalgia particularly the generation y.
Retro - Branding - in this study, it refers to one of the strategies in nostalgia marketing
wherein it involves the strategic rebranding or revival of a brand, product, or design that
aims to capture the essence of nostalgia, creating a sense of familiarity and resonance with
consumers while maintaining a contemporary appeal.
Classic Advertisement - in this study, it is a marketing campaign or promotional
materials that are typically characterized by their enduring appeal, memorable slogans,
iconic imagery, and their ability to evoke nostalgia for the era in which they were originally
created.
Purchasing Decision – in this study, it refers to the choices made by consumers when
selecting and buying products or services that are influenced by various factors including
external influences such as nostalgia advertising and recommendations.
Purchasing Frequency - in this study, it represents how often the generation y make
purchases of a particular product or service within a defined timeframe influenced by
nostalgia marketing.
Purchasing Intention – in this study, it refers to how generation y expressed inclination
or willingness to buy a specific product or service in the near future because of nostalgic
feeling.
Brand Loyalty - in this research, it refers to the extent to which generation Y consumers
consistently prefer and choose a particular brand or company's products or services over
those of competitors.
Generation Y - in this research, they are individual ages between 25 - 40 years old that
served as the targeted consumers of nostalgia marketing.
Chapter 3
RESEARCH METHODOLOGY
This chapter presents the methods and procedures used in conducting the study. It
discusses research design, population and sampling, research instrumentation, data
gathering procedures and statistical treatment.
Research Design
The researchers utilized the descriptive research design to determine the Social
Networking Usage and its influence to the Consumerism Behavior of Student. According
to McCombes (2019) descriptive research aims to accurately and systematically describe a
population, situation or phenomenon. It can answer what, where, when, and how questions,
but not why. It also involves using a range of qualitative and quantitative research methods
to collect data that aids in accurately describing a research problem cited by Voxco (2021).
This is an appropriate choice when the research aimed to identify characteristics,
frequencies, trends, and categories.
Population and Sampling Technique
The researchers conducted a study entitled “Social Networking Usage and Its
Influence on the Consumerism Behavior of Students” The respondents of this study
consisted of two-hundred thirteen (213) students from 3rd year College of Business,
Administration and Accountancy in Laguna State Polytechnic University Santa Cruz,
Laguna. The researchers used the convenience sampling technique in choosing the
respondents of this study. It enables researchers to select units for inclusion in the sample
because they are easy to access and the data collected from respondents were used to
understand the specific issue.
Research Instrument
The research instrument used in this study in collecting data is in the form of survey
questionnaire. It was prepared form of documents with set of questions designed as
respondent’s evaluation which consist of independent and dependent variables that is
checked and validated by the three experts; the Thesis Adviser, Subject Specialist and the
Statistician before the distribution.
In the Survey questionnaire, two likert scales is used; to determine the Usage of
Social Networking, the respondents will choose from the five scales namely: Always,
Often, Sometimes, Rarely, and Never, this questionnaire composed of items.
In the Survey questionnaire, two likert scales is used; to determine the Usage of
Social Networking, the respondents will choose from the five scales namely: Always,
Often, Sometimes, Rarely, and Never, this questionnaire composed of items.
Scale
Range
Description
Interpretation
5
4
3
2
1
4.20-5.00
3.40-4.19
2.60-3.39
1.80-2.59
1.00-1.79
Always
Often
Sometimes
Rarely
Never
Very High
High
Neutral
Low
Very Low
To determine the level of Consumerism Behavior in terms of Habitual, Impulsive,
Dissonance-reducing, and Complex buying behavior, the respondents will choose from
five scales namely Strongly Agree, Agree, Moderately Agree, Disagree, and Strongly
Disagree.
Scale
Range
Description
Interpretation
5
4
4.20-5.00
3.40-4.19
Strongly Agree
Agree
Very High
High
3
2
1
2.60-3.39
1.80-2.59
1.00-1.79
Moderately Agree
Disagree
Strongly Disagree
Neutral
Low
Very Low
Research Procedure
The researchers proposed research entitled “Social Networking Usage and Its
Influence on the Consumerism Behavior of Students” and was approved, therefore, the
problem was identified and its background was analyzed. Followed by the composition of
Chapters 1-3 which is the introduction, review of related literature, and studies that are
collected from various references such as journals, the internet, etc. that may serve as the
framework of the study, and methodology which were read and checked by the panelists.
Followed by doing the questionnaire that was checked by the panelist, after the
questionnaire was approved, the researchers distributed the Google form survey
questionnaires to the respondents which were the one hundred nineteen (119) BSOA 3rd
year students and, ninety-four (94) BSE 3rd year students in College of Business,
Administration, and Accountancy department at Laguna State Polytechnic University
Santa Cruz, Laguna. The data collected was tailed, analyzed and tabulated before
submitting to the statistician for statistical treatment to analyze the findings as a basis for
formulating conclusions and recommendations. It was defended for comments and
suggestions. Lastly, the manuscript is finalizing and signing approval.
Statistical Treatment
Statistical treatment was used to analyze and interpret the data given by the
respondents. To compute the demographic profile of the respondents, the researchers will
use Frequency and Percentage.
To determine the Social Networking Usage in terms of Facebook, TikTok, and
Instagram and to determine the level of Consumerism Behavior in terms of Habitual,
Impulsive, Dissonance-reducing, and Complex buying behavior, the researchers used the
Mean and Standard Variation.
To determine the significant effect of social networking usage on Consumerism
Behavior, the researchers used Regression Analysis.