Association of Nostalgia and Neophilia with Millennial Decision-Making Styles: An Analytical Hierarchy Process (AHP) Approach

Abstract

Despite the significant amount of research on consumer decision-making styles (CDMS), there remains a dearth of knowledge on the influence of various factors on these styles. Thus, exploring emerging and understudied variables, such as nostalgia and neophilia, is imperative alongside CDMS. Moreover, in the contemporary era of marketing, millennials have emerged as a key area of interest in research. Therefore, this study aims to contribute to a more rigorous understanding of CDMS among Sri Lankan millennials and the association between nostalgia and neophilia with these styles. The study was conducted using a positivist research paradigm with a deductive approach and a survey strategy, with a sample size of 385 participants. Factor analysis was utilized to identify the types of CDMS among millennial consumers in Sri Lanka, and the analytical hierarchical process was employed to prioritize the CDMS types. Pearson’s correlation coefficient was used to examine the correlation between nostalgia and neophilia and each dimension of CDMS. The study’s findings revealed the presence of seven CDMS types, with perfectionist decision-making and brand consciousness ranking as the top two. Furthermore, the study discovered a significant correlation between neophilia and nostalgia with CDMS.

1. Introduction

Marketing experts need to understand and forecast how different sorts of consumers act while purchasing, consuming, and disposing of various products and services in today’s dynamic and ever-changing world to meet their needs [1]. On the other hand, an understanding of consumer behavior can direct to enhanced marketing strategies in the element of firms and organizations, and in addition, it helps and guides to improve public policy. As a result, academics have shown an increasing interest in researching consumer behavior, which encompasses an infinite and diversified topics such as consumer decision-making, internal influences, and external effects. Among these areas, consumer decision-making styles have emerged as one of the most prominent and intriguing areas of research among marketing and behavioral sciences scholars [2, 3]. Thus, it is important for determining customer behaviors, segmenting the market, and providing a signal to marketers about the performance of their marketing strategies in the modern marketing era [2, 3].

Similarly, in the modern marketing period, Millennials or Generation Y have emerged as one of the most intriguing scopes of study [4] as Generation Y is one of the most prominent demographic and age cohorts for marketers to target. Furthermore, they are the largest generation in history [5], and they are entering their prime spending years, with enormous indirect spending power due to their strong influence over their parents [5]. Not only do millennials have a greater effect on their parents’ decisions, but they also have a greater influence on other people’s purchases and decisions than previous generations [4].

Moreover, millennials are the first generation to have grown up in a digital environment, and they are known as “Digital Natives” because they actively participate in social media platform activities such as sharing, searching for information to consume, and working and playing [5]. Despite the enthusiasm, a number of issues have arisen within this prospective marketing segment [1]. As a result, marketers need to understand and prioritize the decision-making styles of millennials, as well as create innovative strategies to appeal to and overcome the problems associated with this generation of customers. Furthermore, despite the fact that consumer decision-making styles have been studied over the last few decades using a variety of nationalities, including Americans, Koreans, Chinese, New Zealanders, Greeks, Germans, British, South Africans, and Turks [4]. There is currently a lack of clarity regarding whether the behavior patterns of Sri Lankan millennials align with those of other consumers in different countries, or if they exhibit distinct characteristics when making market decisions. As a result, this study aims to address this gap by conducting an original investigation into the decision-making styles of Sri Lankan millennials, which will be a pioneering effort in this area.

While previous research has provided extensive knowledge on consumer decision-making styles (CDMS), a paucity of studies focus solely on the impact of various factors on these styles. For example, gender [6], domestic brand biasness [3], students’ background and family [7], Religiosity Commitment [8]. Hence, it is essential to identify the environmental conditions and factors that may influence the decision-making styles of millennials, a particular generation of consumers. Among the current approaches to influence millennial decision-making patterns, practitioners and scholars have placed particular emphasis on nostalgic marketing and neophilic tendencies.

The millennial features described above, such as their high degree of technical expertise, socially linked nature, and so on, appear to indicate a range of potentially fascinating collateral relationships to be examined with neophilia. On the other hand, the concept of neophilia is mostly researched on the aspects such food [9, 10], animal [11] innovation [12], and psychology [13]. However, marketing studies related to neophilia were relatively scarce. Similarly, other millennial traits, such as the fact that they are not fundamentally digital natives, that their buying environment is a mix of digital and analog marketplaces, and so on, tend to suggest a potentially fascinating collateral link with nostalgia. On the other hand, the concept of nostalgia is mostly researched on the aspects such as branding, advertising, and consumer attitude. In addition, though research conducted on nostalgia marketing has steadily increased, some gaps in literature can still be found [14].

As a result, this study aims to prioritize millennial decision-making styles and establish a more rigorous understanding of the association of newly emerging factors, such as nostalgia and neophilia, that have not before been examined alongside consumer decision-making styles. The researchers devised the following study objectives to attain the aforementioned research goal:

RO1: To investigate the types of decision-making styles of millennial consumers exercised in Sri Lanka.

RO2: To prioritize the types of decision-making styles of millennial consumers exercised in Sri Lanka.

RO2: To measure the association of Nostalgia with decision-making styles of Sri Lankan millennial.

RO3: To measure the association of Neophilia with decision-making styles of Sri Lankan millennial.

The introduction section of this chapter has established a foundation for the rest of the study by outlining the research problem, research objectives, and the importance of the research. The subsequent sections of this chapter are structured as follows. Firstly, a concise review of the existing literature pertaining to the research objective is presented, emphasizing key theories and empirical findings. Secondly, the research design and methods utilized in this study are described in detail, encompassing data collection, analysis, and interpretation. Finally, the limitations of the study and possible future directions are discussed.

2. Literature review

This section is a presentation of a review of literature pertaining to the key terms involved in the study: consumer decision-making styles (CDMS), millennial, nostalgia, and neophilia. The section begins with a discussion about consumer decision-making styles. The next part provides a comprehensive review of the literature on the constructs of Nostalgia and Neophilia. Further discussion includes the ways in which these two concepts connect with the millennial decision-making styles. Finally, the hypothesis of the study is presented.

2.1 Consumer decision-making styles

2.1.1 Overview of consumer decision-making styles (CDMS)

A consumer decision-making style is defined as “a mental orientation characterizing a consumer’s approach to making choices” [15]. There are three (3) approaches to characterizing consumer decision-making styles in the consumer literature; the psychographic approach, the consumer typology approach, and the consumer characteristics approach.

According to psychographic research, consumer activity, personal interest, and viewpoint may be highly beneficial in gauging customer personalities and anticipating consumer behavior since they are more closely related to the purpose of marketing. The approach to consumer typology attempts to define “types” of the general consumer. However, this approach was criticized because they were skeptical that customers could be classified into separate unidimensional types of behavior [16]. Furthermore, he contended that this approach does not reflect the behavior of the market’s growing “hybrid customer.” The consumer characteristics approach is concerned with a variety of cognitive and emotive parameters/dimensions of consumer decision-making [15]. Consumer researchers have largely recognized the customer characteristics approach as the most interpretive and powerful construct among these approaches since it focuses on a cognitive and effective component of consumer behavior [17]. Sproles developed a tool for profiling consumer decision-making styles in the framework of the consumer characteristics approach in 1985. In 1986, Sproles and Kendall refined the existing inventory and developed the Consumer Style Inventory, a more logically consistent scale (CSI). The development of this refined inventory followed four key standards. Firstly, it includes mental characteristics that inform a consumer’s decision-making process. Secondly, the inventory aims to be as comprehensive as possible, identifying only a limited number of basic and independent consumer decision-making traits. Thirdly, the inventory measures how consumers rate on each of these characteristics. Finally, the inventory takes into account measures that are of significance to consumer interest professionals [15].

2.1.2 Consumer style inventory (CSI)

The CSI included 40 items on consumer decision-making and measured the most basic eight [8] mental characteristics of consumer decision [15].

• Perfectionist/High-quality conscious consumer: This sort of customer seeks the greatest level of product quality. It is also possible that those consumers who are more quality sensitive may purchase more carefully, analytically, and methodically or by comparison.

• Brand-conscious consumer: These customers buy far more expensive well-known premium brands. Consumers who are more brand conscious assume that higher quality equates to a higher price.

• Novelty-fashion consciousness: Consumers who scored high on this aspect are more likely to become enthusiastic and prefer searching for new and stylish items. They keep up with trends, and it is essential for them to be fashionable. It also indicates that seeking variety is a key element of this trait.

• Recreational/hedonistic shopping consciousness: Consumers that belong to this category enjoy shopping. Previous research, however, has labeled this orientation as a “shopping avoider,” thereby negatively charging most items.

• Price-conscious/“value for money” shopping consciousness: These customers are seeking for selling prices and are often interested in cheaper, discounted, or sale prices. Most importantly, customers get the most value for their money.

• Impulsiveness/Careless consumer orientation: These customers are unconcerned with shopping and never plan their purchases. They also appear unconcerned about their spending habits or the “best buys.”

• Confused by over choice consumer: These customers perceive a plethora of brands and stores to select from, making it difficult to reach a choice. Furthermore, as several items in this factor indicate, they suffer from information overload.

• Habitual/Brand-loyal consumer: These customers are likely to have favorite brands and buying habits. The most well-recognized aspect of consumer decision-making is habitual behavior, which enhances its existence as a general trait.

The Consumer Shopping Inventory (CSI) has been tested and verified in various nations in order to get a better knowledge of consumer decision-making styles across cultures. Many experts, however, have challenged the instrument’s applicability and generalizability for focusing primarily on a population of students that does not reflect the entire consumer continuum from diverse demographics and cultures [7, 17, 18, 19]. However, some of the results of the research are mainly consistent with the findings of the first CSI research [18]. However, a number of studies published in peer-reviewed journals show that substantial variations do exist; however, only few of them entirely reproduced all eight dimensions as exactly as the original CSI. As a result, the eight consumer decision-making styles have limited cross-cultural generalizability. Furthermore, given the numerous variances across the nations analyzed, the same traits may not be observed in Sri Lanka. As a result, the researcher has produced the following research.

RQ1: what are the types of decision-making styles of millennial consumers exercised in Sri Lanka?

RQ2: What are the most significant decision-making styles of millennial consumers exercised in Sri Lanka?

2.2 Nostalgia and Neophilia

2.2.1 Types of nostalgia

Term Nostalgia is a Greek word. Nostos means “return home,” while algia refers to a painful ailment. As a result, nosatalgia is characterized as “a painful longing to return home” [19]. Over the last few decades, the concept of nostalgia has gained traction in consumer research [20]. According to the definitions of nostalgia, it reveals that slight changes can be visible in the definitions. But basically they are dealing with pleasant feelings toward the past or longing for something from the past.

It is possible to identify four types of nostalgia through literature, namely: Personal Nostalgia, Interpersonal Nostalgia, Cultural Nostalgia, and Virtual Nostalgia [21]. Personal nostalgia is real nostalgia based on personal experience that is triggered by genuine stimuli. Interpersonal Nostalgia is based on personal nondirect experience and memory [21]. This type of nostalgia is related to a time before birth and is transmitted by our parents or relatives through stories [22]. Cultural Nostalgia, also named as collective nostalgia, is based on the symbols of a particular. It simply refers to a group memory of Virtual Nostalgia/Historic Nostalgia based on books, video materials, and other nondirect experiences of a group of memory [21]. The researchers of this study focused on millennials’ experience of nostalgic feelings toward their own past rather than the cultural and historical nostalgia.

2.2.2 Millennial and nostalgia

Havlena and Holak observed in 1991 that some generations are more prone to trigger nostalgic memories than others. He also said that each generation has its own set of symbols associated with nostalgic memories. Millennial consumers are the most responsive to nostalgic stimuli among the four main target groups in nostalgic marketing, namely experienced old consumers, special experience consumer groups, and consumer groups away from previous environments [21]. Similarly, millennials respond strongly to nostalgia as a result of their birth into a world of fast-changing technology. Furthermore, due to their present life stage of transition, millennials are psychologically at an opportune spot for this reflecting back [23]. Therefore, in this research study focuses on the millennial generation who faced to rapid social changes and the enormous psychological pressure which made them feel confused and uneasy [21]. Further, nostalgic components appear to be potentially useful tools for millennial consumers [24].

2.2.3 Neophilia

Neophilia refers to an inclination or attraction toward new or innovative things or experiences, as per its etymology, where “neo-” means new and “-philia” means attraction [23]. Merriam-Webster dictionary (2010) describes neophilia as a love or enthusiasm for new or novel things. Individuals who exhibit high levels of neophilia tend to be more receptive to novel ideas and products [25]. Louis Janda (2001) characterizes neophilia as an appreciation for and a desire to seek fresh and new experiences or a fondness for what is new. In essence, neophilia represents a preference for novelty and innovation. However, from a marketing standpoint, Neus Soler, a Professor at the University of Oberta de Catalunya, offers a comprehensive analysis of the rising trend of neophilia. She argues that neophilic customers are often leaders in their field, influential in the adoption of new technology and innovations, and indicators of the success of new products or services. Additionally, Nielsen Consulting underscores the importance of identifying neophilia as a critical factor in the survival of a new product.

2.2.4 Neophilia and millennial

There are many unique characteristics shared by the Millennial, such as novelty-seeking, receptive to innovation, technology-addicted (savvy), and trend follower [26]. Further, Millennial are the first to test out the new computer software, invest in the newest smartphone or open their minds to the world of artificial intelligence. Millennial is the generation that easily embraces the postworld on the Internet [27]. It indicates that millennial is a generation that accepts the novel and embraces changes. Due to the above-mentioned millennial characteristics, including high level of technological knowledge, their socially connected nature, and so on, seem to highlight a set of potentially interesting collateral relationships to be investigated alongside neophilia.

2.3 Nostalgia, Neophilia, and decision-making styles of millennials

According to reference (24), there is a strong correlation between nostalgia and consumer decision-making styles. The study found that individuals with a high level of nostalgia proneness had a significant positive association with perfectionism shopping, fashion-conscious shopping, and habitual shopping, as indicated by significant Pearson coefficients. Other previous research studies have also demonstrated that nostalgia can impact consumer behavior in various ways. For instance, one study conducted in 2012 found that ad-evoked nostalgia is linked to consumers’ responses [28], while another study revealed that nostalgic cues in advertising could affect attitudes toward the advertised brand and advertising itself [28]. Moreover, previous research indicates that nostalgic feelings may influence consumption behavior. Furthermore, research has found that nostalgia has a significant positive effect on the perceived value, satisfaction, and loyalty to the destination [29]. Given these findings, it is evident that there could be several compelling secondary relationships between consumer decision-making styles and nostalgia [30]. Similarly, numerous studies have shown that neophilia can also influence consumer behavior [13, 32].

Based on the existing literature, the following research questions and hypothesis are proposed:

RQ3: Does nostalgia has a positive influence on one or more dimensions of decision-making styles of Millennial?

H1: Nostalgia has a positive influence on one or more dimensions of decision-making styles of Millennial.

RQ4: Does neophilia has a positive influence on one or more dimensions of decision-making styles of Millennial.

H2: Neophilia has a positive influence on one or more dimensions of decision-making styles of Millennial.

3. Research methodology

This section explicates the methodology which was used by the researcher in conducting the current study. According to the “Research Onion Concept”, a researcher should design his research methodology like peeling off an onion from outer layer to inner layers [31]. By taking this concept into consideration, this section starts with the research philosophy then is followed by the research approach, research strategy, time horizons, and data collection methods, and finally, data analysis methods.

3.1 Research design

The current study incorporates the use of existing theories, such as consumer decision typologies, to construct hypotheses that will be evaluated during the research process, as is common in positivist philosophy. The survey was chosen as the research strategy, and the mono technique was chosen as the research method for the study.

The population for this study is defined as millennial consumers living in Sri Lanka. The convenience sampling technique was adopted, and a sample size of 385 was determined using Krejcie and Morgan’s (1970) sample determination table, where the present study population is around 6.6 million (Mid-year Population Estimates by Department of Census and Statistics Sri Lanka., 2018). To obtain data on CDMS, nostalgia and neophilia self-administered questionnaires were devised. The questionnaire consisted of four sections, with the first section measuring consumer decision-making styles through 40 questions adapted from the original CSI scale by Sproles and Kendall (1986). The second section obtained data on nostalgia through eight questions adapted from the measurement scale of Perusson (2003) refined by Hajlaoui (2014). The third section measured neophilia with 12 questions taken from Walker & Gibbins’ original neophilia scale (1989). The final section collected demographic information. A pilot test was conducted to ensure the face validity of the research instrument by giving the draft questionnaire to a few target respondents and experts.

In addition, another structured Questionnaire was created for the pairwise comparison format, with a scale of 1–9 being used, as shown in Table 1. Five experts were chosen for this part to provide pairwise comparisons for the AHP analysis. The experts included:

• A marketing researcher with a PhD in marketing and over 10 years of experience in consumer research and analysis, particularly among millennial consumers.

• A retail industry consultant with extensive experience analyzing millennial consumer behavior and preferences.

• An academic with a PhD in marketing and expertise in consumer behavior research.

• A consumer behavior expert with a master’s degree in marketing and over 5 years of experience conducting consumer research and analysis.

• A millennial consumer representative who can provide firsthand insight into the decision-making process of the millennial generation.

Intensity of Importance	Definition
1	Equally important
3	Moderately important
5	Strongly important
7	Very strongly important
9	Extremely strongly important
2,4,6,8	Intermediate values

Table 1.

AHP comparison scale.

3.2 Data analysis methods

Factor Analysis was used to determine whether the CDMS recognized by prior researchers were common to the sample of the Sri Lankan millennial. Further, it was used to reduce and summarize data and to identify underlying dimensions.

An Analytical Hierarchy Process (AHP) Approach was used to identify the most significant decision-making styles of millennial consumers exercised in Sri Lanka. The AHP is a simple decision-making technique developed by Saaty in 1980 for dealing with complicated, unstructured, and multi-attribute problems (Albayrak & Erensal, 2004).AHP is an effective decision-making method especially when subjectivity exists and it is very suitable to solve problems where the decision criteria can be organized in a hierarchical way into subcriteria [33].

The AHP consists of three main steps: The first step of the AHP consists of developing a hierarchical structure of the assessment problem. The overall goal is the solitary factor at the top of the hierarchy. The elements that influence the decision are referred to as attributes or criteria. Alternatives are decision options at the bottom of the hierarchy [32]. The author of the study conducted an empirical investigation and developed a hierarchical model of decision-making styles among millennials. The overall goal is to prioritize the consumer decision-making styles to identify the most significant element or attribute that influences consumer decision-making. Through an extensive review of literature, the study identified seven decision-making styles as criteria and evaluated each of them based on corresponding indicators, which were subcriteria or alternatives (Table 2) [15, 33].

Factor	Code	Item	Loading	Eigenvalue	%Variance Explained	Cronbach’s Alpha
Perfectionist Conscious	PC1	Getting very good quality is very important to me.	.796	6.623	22.076	.824
	PC2	When it comes to purchasing products, I try to get the very best or perfect choice	.816
	PC3	In general, I usually try to buy the best overall quality	.671
	PC4	My standards and expectations for products I buy are very high.	.676
	PC5	I really give my purchases much thought and care	.715
	PC6	A product should be perfect, or the best, to satisfy me.	.526
Brand Conscious	BF2	The more expensive brands are usually my choice	.491	2.925	9.752	.828
	BF3	The most advertised brands are usually very good choices.	.813
	BF4	The higher the price of a product, the better its quality.	.789
	BF5	Nice department and specialty stores offer me the best products.	.765
	BF6	I prefer buying the best-selling brands	.663
Novelty-Fashion Conscious	NC1	I keep my wardrobes up to date with the changing fashions.	.689	2.201	7.335	.778
	NC2	I usually have one or more outfits of the very newest style.	.831
	NC3	Fashionable attractive styling is very important to me.	.734
	NC4	To get variety, I shop at different stores and choose different brands.	.638
Hedonistic & Recreational Conscious	HR1	Shopping is a pleasant activity for me	.874	1.966	6.554	.893
	HR2	Going shopping is one of the most enjoyable activities of my life.	.889
	HR3	I enjoy shopping just for the fun of it	.814
Habitual & Brand-Loyal Conscious	HB1	I have favorite brands I buy over and over	.690	1.502	5.005	.725
	HB2	Once I find a product or brand I like, I stick to it	.752
	HB3	I go to the same store each time I shop	.697
	BF1	The well-known brands are best for me.	.537
Impulsive, Careless Consumer	IC1	I should plan my shopping more carefully than I do.	.634	1.476	4.920	.658
	IC2	I am impulsive when purchasing.	.754
	IC3	Often I make careless purchases I later wish I had not.	.695
	IC5	I do not carefully watch how much I spend.	.659
Confused by over choice	CO2	All the information I get on different products confuses me.	.760	1.290	4.300	.675
	CO3	The more I learn about products, the harder it seems to choose the best.	.776
	CO4	Sometimes it is hard to choose which stores to shop.	.722

Table 2.

Rotated component matrix for CSI.

In the second phase, once the problem has been deconstructed and the hierarchy has been established, the prioritization technique begins in order to identify the relative importance of the elements within each level. The prioritization method works by assigning a number from a comparison scale (Table 1) developed by Wind and Saaty (1980) to indicate the relative importance of the criteria.

The pairwise judgment begins at the second level (the first level of criteria) and ends at the lowest level, alternatives. As stated in the research design section for this study, pairwise comparison judgments were made by selected experts in the field using a structured questionnaire. The mathematical process for normalizing and determining the priority weights for each matrix begins in the third phase.

The consistency of the pairwise comparison assessments is directly related to the quality of the AHP output. Hence, it is critical to evaluate the levels of consistency in the comparison matrices [34]. Accordingly, the result of the comparison matrices was validated through consistency testing to avoid the subjective judgment that would lead to inaccurate results, as suggested by Saaty, 1982.

Eq. (1) consistency index expresses deviations from consistency, and the consistency index is a measure of inconsistency (CI) [32].

$$CI=\frac{{\lambda }_{\max }-\text{n}}{n-1}$$E1

Eq. (2) is used to calculate the consistency ratio (CR), which is used to calculate a direct measure of pairwise comparisons’ consistency [32]. The CR is calculated as the ratio of the CI and the random index (RI), (Table 3) where the values of the RI based on the number of evaluated criteria, as reflected in Table 4.

n	1	2	3	4	5	6	7	8	9	10
RI	0	0	0.58	0.9	1.12	1.24	1.32	1.41	1.45	1.49

Table 3.

Random index.

Variable	Dimensions	Tests with Standards
		KMO	BTS Sig	CR	AVE
		0.5<	0.05>	0.7<	0.5<
Consumer Decision-Making Styles	Perfectionist Conscious	.841	.000	0.873	.536
	Habitual & Brand-Loyal Conscious	.725	.000	0.841	.570
	Novelty-Fashion Conscious	.750	.000	0.858	.603
	Brand Conscious	.828	.000	0.867	.568
	Hedonistic & Recreational Conscious	.726	.000	0.934	.825
	Confused by over choice	.656	.000	0.822	.606
	Impulsive, Careless Consumer	.686	.000	0.799	.498
Nostalgia	Reminder of Memories	.769	.000	0.876	.641
	The Past Regret	.784	.000	0.868	.622
Neophilia	Acceptance of Newness	.773	.000	0.812	.469
	Openness to Newness	.764	.000	0.839	.512

Table 4.

Goodness of measurements.

$$CR=\frac{CI}{RI}$$E2

The accepted upper limit for CR is the value 0.1. If the final CR is more than this value, the evaluation procedure must be repeated to ensure consistency [33]. To examine the third and fourth study questions, which were to identify the associations between nostalgia and neophilia with each CDMS dimension Pearson’s Correlation Analysis was used.

4. Data presentation and analysis

4.1 The data preparation and sample profile

The data preparation process, which includes checking, editing, coding, transformation, data cleaning, systematic data adjustment, and finally, the selection of a data analysis strategy [35] was adopted by the researcher for the present study. Once the data has been prepared for the analyst, analyze the respondent’s profile in order to understand and explain the characteristics of the particular sample. In the present study, the researcher used gender, educational level, and average monthly income level as demographic variables to analyze the sample characteristics shown in Table 5.

Sample description		f (N = 385)	%
Gender	Female	222	58%
	Male	163	42%
Income distribution	25,000 and below	253	66%
	25,000-50,000	61	16%
	50,000-75,000	20	5%
	75,000-100,000	17	4%
	100,000-125,000	12	3%
	Above 125,000	22	6%
Educational level	Ordinary level	2	1%
	Advanced level	5	1%
	Undergraduate	274	71%
	Degree	52	14%
	Postgraduate	52	14%

Table 5.

Sample profile.

4.2 Factor analysis and goodness of measurement

The best method for factor analysis was then selected. The current study used principal component analysis, which took into account the entire variation in the data. Following the procedure of factor analysis, determine the number of factors. Among the various approaches, the study adopted based on eigenvalues combined with the percentage of variance.

The eigenvalues represent the amount of variation associated with the factor. As a result, only factors with eigenvalue variances greater than 1.0 are retained [35]. The percentage of variation retrieved by the factors, on the other hand, should be sufficient. It is suggested that at least 60% of the variance be retrieved by factor [35]. In this work, the Varimax approach is employed as a rotation method to decrease the number of variables on a factor with high loads. Table 2 illustrates the varimax rotated factor loading of the 40-item CSI, whereas Tables 6 and 7 show the nostalgia and neophilia rotated component matrix for the Sri Lankan millennial sample, respectively.

Factor	Item Code	Item	Loading	Eigenvalue	%Variance Explained	Cronbach’s Alpha
Reminder of Memories	NO1	In general, I remember my memories.	.857	3.307	41.343	.802
	NO2	Memories of the past come to my mind.	.895
	NO3	I saw in my thought some of my memories.	.794
	NO4	I think back to times of my life that are gone by now.	.577
Past Regret	NO5	I regret not being able to relive my happy memories.	.781	1.823	22.782	.797
	NO6	I regret not being able to return to my past.	.824
	NO7	I look back with regret that the right times of the past will not recur.	.807
	NO8	I wish I could relive the emotions of the past.	.689

Table 6.

Rotated component matrix for nostalgia.

Factor	Item Code	Item	Loading	Eigenvalue	% Variance Explained	Cronbach’s Alpha
Openness to Newness	NE3	I think Pigs can fly	.776	2.601	26.014	.761
	NE4	I would like to be one of the first passengers to go to the moon	.716
	NE5	More people ought to experiment with “mind-altering” drugs	.679
	NE6	I would like to try eating a insects	.762
	NE7	Crime is caused by the situations people find themselves in	.623
Acceptance of Newness	NE1	I think there should be more changes in our society	.501	2.421	24.215	.709
	NE9	I like change	.732
	NE10	Living in another country is a worthwhile experience	.648
	NE11	People should always seek personal growth	.736
	NE12	I make things in a way I like to use	.751

Table 7.

Rotated component matrix for Neophilia.

Further, it is vital to ensure that the instrument used to measure a particular concept measures the variables accurately and that, in fact, the concept set out to measure is actually measured [36]. The goodness of the measures used in the study was therefore assessed by testing the reliability and validity of the instruments. Thus, all instruments comply with their tests and standards (Table 4). It has therefore been established that the instrument is valid and reliable. In addition, it is important that the data meet the basic assumptions underlying the statistical techniques to be used before proceeding with the data analysis [37] because analysis involves the use of a sample, not the population, and these assumptions form the basis of all multivariate statistical techniques. Since the requirement for normality, linearity, homoscedasticity, and multicollinearity has been met by all variables, it can be concluded that the data is suitable for multivariate analysis.

The rotated component matrix (Table 2) indicates that 29 items were successfully loaded into seven factors, each having an eigenvalue greater than 1.0. These factors accounted for approximately 60% of the total variance. As per the results presented in Table 2, the factor “price-value conscious” was removed, leaving seven factors. The researchers opted to name these remaining factors in a manner consistent with the original study conducted by Sproles and Kendall (1986) to maintain the similarity of the decision-making characteristics represented by each factor.

According to the findings of this study, the Sri Lankan millennial has seven decision-making styles: Perfectionist Consciousness, Habitual & Brand-Loyal Consciousness, Novelty-Fashion Consciousness, Brand Consciousness, Hedonistic & Recreational Consciousness, Confused by over choice, and the Impulsive Consumer.

4.3 Analytical hierarchical process

Then, to identify the most significant decision-making styles of millennial consumers exercised in Sri Lanka influence of the extracted factors of young consumer, the mathematical tool analytical hierarchical process (AHP) is used. The author has developed the decision hierarchy design first, followed by the prioritization process using pairwise comparison scale. Table 8 shows the overall priority scores of millennial decision-making styles with factors priority within group with their percentages, rank within factors, and results of factors consistency tests.

CDMS		Priority	Rank	Results of consistency tests	Overall rank
Perfectionist Conscious
1	PC1	34.60%	1	Number of comparisons = 15	1
2	PC2	20.90%	2	Consistency Ratio CR = 0.6% (0.006 < 0.1)
3	PC3	19.90%	3	Principal eigenvalue = 6.039
4	PC4	6.80%	5	CI = 0.007, RI =1.24
5	PC5	11.50%	4
6	PC6	6.20%	6
Brand Conscious
1	BF2	9.50%	4	Number of comparisons = 10	2
2	BF3	8.80%	5	Consistency Ratio CR = 1.5% (0.015 < 0.1)
3	BF4	15.50%	3	Principal eigenvalue = 5.065
4	BF5	26.10%	2	CI = 0.016, RI =1.12
5	BF6	40.00%	1
Novelty-Fashion Conscious
1	NC1	13.80%	3	Number of comparisons = 6	4
2	NC2	12.80%	4	Consistency Ratio CR = 0.4% (0.004 < 0.1)
3	NC3	25.60%	2	Principal eigenvalue = 4.010
4	NC4	47.80%	1	CI = 0.003, RI =0.9
Hedonistic & Recreational Conscious
1	HR1	52.80%	1	Number of comparisons = 3	6
2	HR2	33.30%	2	Consistency Ratio CR = 5.6% (0.056 < 0.1)
3	HR3	14.00%	3	Principal eigenvalue = 3.054
				CI = 0.032, RI =0.58
Habitual & Brand-Loyal Conscious
1	HB1	42.40%	1	Number of comparisons = 6	4
2	HB2	22.70%	2	Consistency Ratio CR = 0.4% (0.004 < 0.1)
3	HB3	12.20%	4	Principal eigenvalue = 4.010
4	BF1	22.70%	2	CI = 0.003, RI =0.9
Impulsive, Careless Consumer
1	IC1	46.50%	1	Number of comparisons = 6	3
2	IC2	17.90%	3	Consistency Ratio CR = 3.6% (0.036 < 0.1)
3	IC3	29.30%	2	Principal eigenvalue = 4.098
4	IC5	6.30%	4	CI = 0.032, RI =0.9
Confused by over choice
1	CO2	20.00%	3	Number of comparisons = 3	7
2	CO3	40.00%	1	Consistency Ratio CR = 0.0% (0.00 < 0.1)
3	CO4	40.00%	1	Principal eigenvalue = 3.000
				CI = 0.00, RI =0.58

Table 8.

Overall consumer decision-making styles with AHP.

The study aimed to prioritize consumer decision-making styles using a hierarchical model depicted in Figure 1. The judgment matrix was used to compare the importance of each item in the data, and EXCEL was used to derive solutions through the weighted average method. To ensure consistency, a consistency test was conducted using Eq. (2), and all CR values were found to be lower than 0.1, indicating that all judgments were consistent. The weights of the factors were calculated based on the judgment matrix, and the total influence factors at the C level were evaluated. A weighted average was then used to rank each statement within their respective factor, as shown in Figure 1.

Figure 1.

Hierarchical structure of CDMS.

The results revealed that Sri Lankan millennials frequently followed three main decision-making styles – perfectionist consciousness, brand consciousness, and impulsive, careless decision-making, which explained 36.75% of the variance out of 60% variance in factor analysis.

4.4 Nostalgia and Neophilia with CDMS dimensions

Pearson’s correlation coefficient was utilized to examine the association between neophilia and nostalgia with each dimension of consumer decision-making styles. Table 9 shows that all seven CSI model dimensions appear to be positively correlated with nostalgia and neophilia, which has led to accept hypotheses H1 and H2. Perfectionist Conscious, Novelty-Fashion Conscious, Hedonistic & Recreational Conscious, and Impulsive, Careless Consumer decision-making styles are highly correlated with Neophilia while Habitual & Brand-Loyal Conscious, Brand Conscious, and Confused by over choice decision-making styles are highly correlated with nostalgia.

		Perfectionist Conscious	Habitual & Brand-Loyal Conscious	Novelty-fashion conscious	Brand Conscious	Hedonistic & recreational conscious	Confused by over choice	Impulsive, Careless Consumer
Neophilia	Pearson Correlation	.151**	.104**	.134**	.151**	.177**	.211**	.267**
	Sig. (2-tailed)	.003	.001	.009	.003	.000	.000	.000
Nostalgia	Pearson Correlation	.130*	.167*	.133**	.231**	.157**	.255**	.239**
	Sig. (2-tailed)	.011	.000	.009	.000	.002	.000	.000

Table 9.

Nostalgia and Neophilia with CDMS dimensions.

5. Discussion and conclusion

This chapter begins with a discussion of the key findings in respect to the research questions. Following this, general conclusions are made based on the study’s findings. Finally, the implications, limitations, and recommendations for further research are addressed at the end of the section.

5.1 Key findings

The findings of the study revealed that Sri Lankan millennials exhibit seven distinct decision-making styles, including Perfectionist Consciousness, Brand Consciousness, Novelty-Fashion Consciousness, Hedonistic and Recreational Consciousness, Impulsive/Careless Consumer, Confusion from Overchoice Consumer, and Habitual and Brand-Loyal Consciousness. The research has further revealed a significant absence of price-value consciousness in the decision-making style of Sri Lankan millennials. The findings, based on the Analytic Hierarchy Process (AHP) technique, indicate that the perfectionist conscious decision-making style received the highest ranking in this study.

The fourth and fifth research objectives of this study were designed to investigate how nostalgia and neophilia influence the decision-making styles of Sri Lankan millennials. The findings suggest that both nostalgia and neophilia have a significant impact on the way these consumers make choices, highlighting the importance of these psychological factors in shaping their decision-making styles. The study revealed that the correlation between neophilia and Novelty-Fashion Consciousness, Impulsive, and Careless Consumer decision-making styles is significantly stronger than their correlation with nostalgia. Conversely, the study found that the decision-making styles of Habitual & Brand-Loyal Conscious, Brand Consciousness, and being Confused by Over Choice are strongly associated with nostalgia. In other words, the results suggest that nostalgia plays a greater role in shaping these decision-making styles among Sri Lankan millennials than neophilia does.

5.2 Discussion

5.2.1 The Sri Lankan millennial generation does not exhibit a Price-conscious decision-making style

The current study’s finding of the absence of price-value consciousness among Sri Lankan millennials is in line with the outcomes of prior research conducted in different countries such as New Zealand (43), China [17], Iran (44), and India [6]. These studies also observed the lack of a price-conscious decision-making style in their respective countries. The consistency of this finding across multiple cultural and geographic contexts implies a broader trend among Millennials and highlights the need for businesses to reconsider pricing strategy when targeting millennial. On the other hand, early adopters or innovators appear to be less price sensitive than later consumers [38]. According to prior research [39, 40], millennials are early adopters, which could be one of the reasons they are not price-conscious.

Furthermore, there could be several possible reasons why the Sri Lankan millennial generation does not exhibit a price-conscious decision-making style. One reason could be the cultural values and beliefs that prioritize quality and status over price. Sri Lankan society places a strong emphasis on social hierarchies, and individuals often use their purchasing decisions to signal their status and social position. Another reason could be the growing affluence of the Sri Lankan middle class, which has led to a shift in consumer preferences toward higher-end products and services. With more disposable income, millennials may be more willing to pay a premium for products that offer higher quality or better brand recognition [41]. Additionally, the rise of e-commerce and digital marketplaces in Sri Lanka may have created a more competitive pricing environment, making it easier for consumers to compare prices and find the best deals. As a result, millennials may feel less pressure to prioritize price in their decision-making process. Finally, the outcomes of the current study show that Sri Lankan millennials are perfectionists. These perfectionist customers may be willing to pay a higher price for superior quality [34]. It is crucial to acknowledge that the aforementioned rationales are merely potential explanations, and a more comprehensive investigation is necessary to fully comprehend the variables that shape the decision-making approach of the Sri Lankan millennial cohort.

However, several scholars claimed that the price-conscious construct had certain reliability issues [42]. As a result, the price-conscious construct required refinement [38].

5.2.2 Millennial consumers in Sri Lanka exhibit a high degree of perfectionist consciousness

According to the AHP technique, the perfectionist conscious decision-making style received the highest rank in this study. The finding is similar to [4] prior research, which found perfectionist consciousness as the most popular style among Indian, Korean, Chinese, and American consumers. This is also one of the consistent decision-making styles that have been shown in a number of earlier studies [1, 6, 7, 18]. Moreover, there may be several possible factors that contribute to the high degree of perfectionist consciousness exhibited by Sri Lankan millennials. Such as, the emphasis on education and achievement in Sri Lankan culture may lead to a high degree of perfectionism among Millennials, including in their decision-making style. This focus on excellence and high standards may also extend to their standard of living, as Millennials may strive to achieve a certain level of material success and financial stability. Additionally, the influence of social media and the Internet may create a perception of what a desirable standard of living looks like, further reinforcing the importance of perfectionism and achieving high standards in decision-making and in life in general. Further findings revealed this style was followed by the Brand Conscious decision-making method. This finding is consistent with a study conducted using AHP analysis in India, where brand consciousness is ranked first [33].

5.2.3 The impact of nostalgia and neophilia on consumer decision-making styles

The results of this study indicate that Nostalgia and Neophilia impact the consumer decision-making styles of Sri Lankan millennials. The available evidence suggests that nostalgia and neophilia may positively influence consumer decision-making styles, although the extent of their influence may vary depending on the individual and the specific context.

The present study’s findings are consistent with prior research, which has demonstrated a positive association between the decision-making styles of Generation Y consumers and their tendency toward nostalgia [7].

According to research, the association between neophilia and consumer behavior styles such as Perfectionist Conscious, Novelty-Fashion Consciousness, Hedonistic and Recreational Conscious, and Impulsive and Careless Consumer is stronger than their association with nostalgia. Perfectionist Conscious consumers are likely to exhibit a strong correlation with neophilia as they seek out high-quality and innovative products and are willing to pay a premium for such products. Similarly, Novelty-Fashion Conscious consumers may have a strong correlation with neophilia because they possess a keen interest in fashion and are willing to take risks with their fashion choices by adopting new trends. The Hedonistic and Recreational Conscious consumer may also have a strong correlation with neophilia due to their pursuit of pleasure and excitement, making them more likely to try new products that offer novel experiences. Lastly, Impulsive and Careless Consumer decision-making styles may exhibit a strong correlation with neophilia due to their tendency to make spontaneous and novelty-seeking purchases without much consideration for the long-term consequences.

Nostalgia is characterized by a sentimental attachment to positive memories of the past, which can influence consumer behavior. Consumers who exhibit Habitual & Brand-Loyal Conscious, Brand Consciousness and are Confused by over choice decision-making styles tend to have a stronger association with nostalgia. Habitual & Brand-Loyal Conscious consumers demonstrate a high correlation with nostalgia due to their long-term relationship with a particular brand or product, leading to positive brand associations and a sense of nostalgia. Similarly, Brand Consciousness is highly correlated with nostalgia due to the emotional attachment and positive memories associated with the brand image and reputation. Consumers who feel overwhelmed or anxious due to too many choices may exhibit a Confused by over choice decision-making style, which is also highly correlated with nostalgia. These consumers may seek comfort in familiar products or brands, leading to nostalgic feelings toward products or brands from their past. Overall, these findings are consistent with the profile of individuals prone to nostalgia, who have a prominent desire for the past. Hence, this finding is consistent with the profile of an individual prone to nostalgia, who has a prominent desire for the past [39].

5.3 Implications

This study’s findings significantly contribute to the existing literature in several ways. Firstly, it addresses the need for the original form of the Consumer Style Inventory (CSI) to be reassessed in different countries. Additionally, the study is one of the few attempts to investigate consumer decision-making styles in Sri Lanka [39, 40, 41]. Therefore, this study provides valuable insights into the decision-making styles of Sri Lankan millennials, which can be useful for marketers and businesses targeting this demographic. Additionally, the findings can help researchers better understand the consumer behavior of Sri Lankan millennial and contribute to the development of more effective marketing strategies. Moreover, with the use of the multi-criteria decision-making technique AHP, this study provides new insight into identifying the most common CDMS of millennials in Sri Lanka. Furthermore, using AHP technique adds a methodological contribution to the study.

Second, upon a thorough review of the literature, it becomes apparent that there is a gap in research regarding the concepts of nostalgia and neophilia and their impact on consumer decision-making. Despite previous studies on nostalgia, there has been a lack of attention given to its influence on consumer decision-making. Moreover, to the best of our knowledge, no research has been conducted on the effect of neophilia on consumer decision-making styles. Additionally, most existing studies have not investigated the impact of both nostalgia and neophilia on consumer decision-making styles simultaneously. Therefore, this study’s contribution to the existing body of knowledge is to address these gaps by exploring the relationship between nostalgia, neophilia, and consumer decision-making styles. This study’s pioneering role can help fill these research gaps and provide valuable insights for marketers and businesses seeking to understand consumer behavior and develop effective marketing strategies. Furthermore, no research was found to investigate the impact of nostalgia and neophilia on millennial decision-making styles with reference to the context of Sri Lanka. Through this study, all above-mentioned knowledge gaps were filled.

The practical contribution of this study is primarily relevant to marketing managers. The study’s findings can assist marketers in understanding the decision-making styles of Sri Lankan millennials, providing them with valuable insights to better target this generation. The Consumer Style Inventory (CSI) used in this study is a reliable and valid tool for analyzing millennial consumers’ behavior in Sri Lanka, providing a useful tool for marketers to create consumer profiles to guide marketing strategy. Moreover, marketers can use the findings of this research to segment, target, and position their products or services more effectively. Overall, this study’s practical contribution can help marketers overcome challenges in targeting Sri Lankan millennials by providing them with a better understanding of their decision-making styles, resulting in more effective marketing strategies and better business outcomes.

Moreover, examining the association between nostalgia and millennial decision-making styles has practical contributions for companies. They can leverage this knowledge to develop products and marketing campaigns that evoke positive emotions and memories from the past, thereby enhancing consumer engagement and brand loyalty. Understanding the role of nostalgia in decision-making can also guide product development by identifying design elements that trigger nostalgic feelings in consumers, resulting in increased purchase intent. In addition, businesses can create consumer experiences that leverage nostalgia to generate positive emotions and memories, ultimately leading to higher consumer satisfaction and engagement. Overall, researching the association of nostalgia with millennial decision-making styles can have practical implications for product development, marketing, and consumer experiences, enabling companies to formulate effective strategies to engage and appeal to this crucial demographic group. In addition, as per the research findings, businesses and marketers should consider incorporating new and innovative products or services into their offerings to appeal to consumers who have a strong neophilic inclination. For consumers who exhibit perfectionist-conscious behavior, marketers should emphasize the uniqueness and novelty of their products, while also highlighting the quality and attention to detail in their design and production. For those with novelty-fashion consciousness, businesses can focus on promoting cutting-edge and trendy styles, using social media platforms to showcase new arrivals and limited edition collections. Hedonistic and recreational-conscious consumers may be drawn to products that promise new and exciting experiences, such as adventure tourism, extreme sports, or high-tech gadgets that offer sensory stimulation.

Lastly, impulsive and careless consumers may be particularly susceptible to impulse purchases triggered by a desire for novelty and excitement. As such, businesses should take care not to exploit these consumers by marketing products in a way that encourages reckless spending. Understanding the connection between neophilia and consumer behavior styles can help businesses tailor their marketing strategies to appeal to a wide range of consumer preferences and increase their chances of success in the competitive marketplace.

5.4 Limitations and further research

The research is subject to certain limitations that warrant consideration when interpreting the findings and implications. Firstly, the study was restricted to millennial consumers residing in Sri Lanka, so the generalizability of the results to other generations and populations may be limited. Future investigations may benefit from a more diverse sample, encompassing respondents from various generations, in order to draw more robust and generalized conclusions. Additionally, as this was a quantitative study, its ability to fully comprehend the intricacies and processes underlying the interaction between nostalgia, neophilia, and consumer decision-making styles may have been restricted. Given that nostalgia and neophilia are concepts highly intertwined with consumer psychology, qualitative research would be more appropriate in order to enhance our understanding of these constructs.

6. Conclusion

In conclusion, this study has shed light on the decision-making styles of Sri Lankan millennials and the role of nostalgia and neophilia in shaping their choices. The findings based on AHP, indicate that Sri Lankan millennials exhibit various decision-making styles, with perfectionist consciousness being the most prominent. Interestingly, the study found a significant absence of price-value consciousness in their decision-making styles. Furthermore, the study highlights the importance of nostalgia and neophilia in influencing their choices. The findings suggest that while both factors have a significant impact on decision-making, nostalgia appears to be more closely associated with certain styles, such as Habitual & Brand-Loyal Consciousness and being Confused by Over Choice. In contrast, neophilia is more strongly linked to Novelty-Fashion Consciousness, Impulsive, and Careless Consumer decision-making styles. Overall, this study provides valuable insights into the decision-making patterns of Sri Lankan millennials and the role of psychological factors in shaping their choices.