Avantar

Millennial Research Profile

by: Communications 318 Brigham Young University

Table of Contents
Introduction..................................................... 1 Avantar Overview............................................ 2 Avantar App Portfolio................................. 2 Industry....................................................... 3 App Reviews............................................... 4 SWOT......................................................... 6 Competition.................................................... 6 Google Maps.............................................. 6 Apple Maps................................................ 7 Yelp............................................................. 8 Urbanspoon................................................ 9 Competitor Comparison Chart................. 10 Millennials...................................................... 11 Demographics.......................................... 11 Politics...................................................... 11 Religion.................................................... 12 Relationships............................................ 12 Education................................................. 13 Travel........................................................ 13 Eating Habits............................................ 14 Leisure Habits........................................... 15 Recreation................................................ 15 Finances.................................................... 16 Technology & Media Consumption.......... 17 Social Media............................................. 18 App Use.................................................... 19 A Snapshot of Millennials......................... 20 Values & Beliefs Summary........................ 20 Ten Key Self-Interests............................... 21 Quantitative Sample...................................... 22 Q4 Analysis............................................... 24 Q7 Analysis............................................... 26 Q8 Analysis............................................... 28 Q8b Analysis............................................ 30 Q9 Analysis............................................... 32 Q10 Analysis............................................. 35 Q11 Analysis............................................. 36 Q12 Analysis............................................. 38 Trends & Comparisons............................. 40 Qualitative Data............................................ 45 Focus Group Results................................ 45 Qualitative Survey Results........................ 46 The Perfect App....................................... 47 Conclusion..................................................... 48 Works Cited................................................... 50 Appendix A - Survey...................................... 53

Introduction
In todays data-driven world, a vast amount of information is available to help shape and target products and marketing efforts to a particular audience. Among Millennials, the information available is immense. We have sought to gather this information from a variety of primary and secondary sources to help you, the client, understand this target audience better than before. This will help you reach your primary goals: 1) Increase the number of Millennial users of Avantar apps and 2) Retain existing Millennial users. To obtain this information we have scoured the Internet for existing academic studies, surveys, analyses and commentary about the Millennial generation, its habits, values and beliefs. This information was combined with information obtained from an original survey completed by over 1,000 respondents, a focus group of Millennials and statistical analysis of survey results. This has provided a more complete picture of the Millennial generation. This will allow you to tailor your products to this group, providing the custom, personalized system that they desire. In this booklet you will come to understand a generation that is independent and individualistic, a generation that questions authority and tradition and seeks for new and innovative ways to understand and live in the world. This generation, with a tremendous amount of purchasing power, is poised to have an enormous impact on the world and is looking for tools to help it live every day life and to make tasks easier. That is where Avantars apps come in. The apps can be developed specifically to help Millennials achieve their goals. As Avantars portfolio grows and expands as a result of this research, Millennials across the globe will have their lives changed.

Avantars Goals 1. Increase the number of Millennials using Avantars apps. 2. Retain existing Millennial users of Avantar apps.

-1-

Avantar Overview
Avantar is a small, privately-owned company founded in 2008, focused on creating, maintaining and innovating local mobile search apps for its customers at a low price (most apps are free except for advertising). The company uses the Yellow Pages database to create mobile search apps. These apps are popular and are among the foremost apps in the mobile local search app industry. The president of Avantar is Adrian Ochoa. He co-founded the company with Michael Alvarez (previously CEO, now CMO of Avantar). Ochoa kick-started his advertising career with the purchase of the first Apple computer. He created Avantar in a similar way when he bought the first Apple iPhone and envisioned the possibility of an app business. He had extensive experience with the directory industry, and it seemed natural that people would want an interactive map on their phone. After discovering the iPhones possibilities, Ochoa and Alvarez started developing apps for the iPhone several months before the App Store had released. They saw the possible joining of the mobility, internet capabilities and cell-tower usage (and later, the ingrained GPS technology) of the iPhone to be a perfect opportunity to create a mobile location search app.1 The most popular apps of Avantar are Yellow Pages, Yellow and White Pages, Showtimes, OneTap Movies, Munch and AirYell, among others. Avantar focuses on making easy-to-use apps that connect users quickly with their desired location. Sometimes the app will also provide users with coupons and deals. Avantar is known as one of the first companies to launch an app in the App Store. Its products are the face of the company. The Yellow Pages app had the initial competitive advantage of being one of the first apps to be purchased in the app store.2 The apps work well, but fail to draw a younger user base. Millennials are the up-andcoming app generation, and with their loyalty given to competitors (Google Maps, Yelp and YP, in particular), the Avantar apps are in danger of dwindling away. Avantar Local has a moderate social media presence, with an active Twitter, Facebook and Instagram. The Instagram handle is @Avantarlocal with 5 followers and 14 pictures posted. Facebook presence is stronger with 48 likes and several posts. The Twitter account @AvantarApps has 409 followers and 362 tweets; however, there have been no tweets since May 2013.

Avantar App Portfolio

Avantar produces mobile apps for a number of different platforms, including Android, iOS, Mac OS, Windows and Amazon Kindle. Their apps are most popular and refined for iOS. The following identifies which products are available for which mobile platforms: OS/Platform OSX Windows Android App Yellow Pages Yellow Pages, White & Yellow Pages Yellow Pages, White & Yellow Pages, Showtimes White & Yellow Pages, AirYell Yellow Pages, White & Yellow Pages, AirYell, Munch, Showtimes, OneTap Movies Yellow Pages Yellow Pages, White & Yellow Pages

iPad iPhone & iPod Touch

Facebook Kindle

Each app uses the directory from Yellow Pages a system that provides them with up-to-date information about businesses and individuals, including phone numbers, addresses, websites and more. This information is re-skinned into several different apps marketed to different audiences to meet varying self-interests. The mobile directory app leaders apps feature restaurant mobile searches, location auto detect,

-2-

result sorting based on distance and business info. Collectively, over 60 million listings are posted monthly, and the app sess over eight million unique visits per month.3 Information is updated through PowerListings, allowing business owners to update their business listings in Avantars directory.

Industry

The mobile industry is quickly growing and Avantars focus is to increase the number of evolving. In December 1997 there were 55.3 downloads and increase usage among those who million wireless subscriber connections and in December of 2012 there were 326.4 million. An- have downloaded their directory apps creating a culture where consumers feel a need to use nual wireless data traffic, their app every day. not even recorded in 1997, reached 1.468 trillion MB Avantars focus is to create a A primary audience for in 2012. By the end of 2013, experts believe that mobile devices will outnumber the population on earth.4

exceed 45.6 billion in 2012.5 Eighty percent of consumers plan to use mobile devices for commerce in the next two months.4 Forty-one percent of shoppers use their mobile device to browse for a product after seeing it in a show or ad. Thirty-six percent of shoppers use their mobile device to search for store locations. Seventy-two percent of tablet users make purchases from their devices on a weekly basis and tablet users spend 50 percent more money while using their devices than when on a PC.4

culture where consumers feel a need to use their app every day.

According to the CTIA, an international nonprofit trade association that has represented the wireless communication industry since 1984, conducted a semi-annual wireless industry survey various categories in that industry. In a reported wireless data traffic survey evaluating a period from 2010 to 2011, there was a 123 percent increase in data traffic (388 billion MB to 867 billion MB). From 2011 to 2012, there was a smaller increase of 69 percent in data traffic. With Apples invention of the iPhone and the proliferation of smartphones, people are turning to technology for information. One of the first apps in the market was Yellow Pages by Avantar. As fewer individuals receive Yellow Pages on their doorsteps, Avantar is looking for a way to appeal to the rising generation and redefine the future of the mobile directory industry among millennials. More than 56 percent of the current population owns a smartphone and 80 percent of all mobile time is spent using apps. In September 2012 it was expected that global app downloads would

the mobile app industry is the millennial generation. Currently, Avantars apps are downloaded primarily by older users. Other apps (e.g. Google Maps, Yelp) have dominated the industry among millennials, presenting a challenge for Avantar. Millennials, many of whom are college students, frequently use their phones in a college environment where finding a good place to eat or nearby entertainment are important. Out-of-state college students are usually unfamiliar with the town they are living in, providing a need for the directory-style app. Millennials typically use their smartphones to navigate and locate local businesses for their day-to-day activities. Millennials also use smartphones to communicate with their peers, professors and employers to stay updated and informed. Several mobile directory apps have faced controversy, threatening the credibility of the entire mobile directory app market. In one incident, 20 percent of Yelp reviews came from people who had been paid to rate the product positively. This caused an ethical dilemma among ratings in directory apps.

-3-

Avantar Overview
Astroturfing on Google Local and Yelp is an issue that recently surfaced in the mobile app industry. Astroturfing is the practice of masking the sponsors of a message so it appears to have come from a disinterested, grassroot participant. It is intended to make the advertisements seem legitimate while withholding information about the sources financial connection.6 Both companies and 17 other businesses have agreed to cease their practice of writing fake online reviews for businesses and to pay more than $350,000 in penalties after being caught posing as real consumers on sites such as Yelp, Google Local and CitySearch.7 Avantar is looking for a way to integrate social media to involve its users with ratings and reviews. Avantar does not have a physical website that users or potential users can visit for more information or to access the system without a smartphone, which makes it difficult to evaluate the system. 5 stars Works great I use it a lot all the time. Best in Market. Prove it to yourself no lie. Fast to find things. I like this application because its fast and gives me lots of locations to choose from. Great. Easy to use and quick results. 4 stars Ill hafta try it out some more, (for the 5th star) BUT .. right off, I found a(normally) obscure fuel station, and it showed an ACCURATE map, phone#s, and I tapped the info card and it filled out COMPLETELY, in contacts --for me! 3 stars Works so long as u dont want the website. Crashes when u try. Its ok. Force close issues 2 stars Cant seem to find. The reason I even downloaded this app was becaise after a web search of what I was looking for, essential oils, I was told of the app. Now that I have the app, it isnt finding a thing I look for. Only the word oil works, coming back with random names of businesses with the word in it... 1 star Doesnt work. I try to look up a store and it wont do anything but says there isnt one even though Im standing next to the store. Should Have 1/4 of a Star Rating. Doesnt show the numbers Im looking for and quits working when pressing on the listing to try to get the number.

App Reviews
Below are summaries of the information found at the two major app stores, Google Play Store and the Apple App Store. The other app stores all feature low numbers of downloads and less-developed or more neglected products. After an analysis of app review comments in both the Google and Apple app stores, several trends have been identified. The greatest reasons for negative reviews are glitches in the app, freezing and hanging and incorrect and out-of-date information. Most users cite experiences with the app showing incorrect information which made them more likely to uninstall the apps. The reasons for liking and continued use of the app include its simplicity, ease of navigation and the extensive features. Examples of reviews that show each of these trends are below. Spelling and grammar are preserved from the original reviews.

-4-

Key Findings
Overall, Avantar apps are rated highly in each of the App stores. More than 40 percent of Avantar apps have a five star rating overall. In particular, the Android apps are strong. The app reviews do reveal some weaknesses among iOS apps providing an opportunity for improvement. *Graphs represent data available in the Apple Ap and Google Play stores.

-5-

SWOT/Competition
Avantar was among the first apps in the navigation category Yellow Pages brand resonates with a lot of people Apps with positive reviews and reputations Apps are simple and easy to use Information comes from a good database User reports and fraud reviews First-mover advantage

Strengths

Small towns have hard-to-find locations and may not appear in directories Information changes frequently, making it difficult to keep the app up-to-date Difficulties positioning brand on social media Only available on mobile devices Apps have glitches that turn people away

Weaknesses

Avantar has the ability to target specific people in app promotion Resources to create new app that will appeal to younger publics Social media integration Additional, untapped publics to expand user base Could add features that are loved by users of competitors apps.

Opportunities

Well-known and highly-used competitors built into smart phones People view Yellow Pages as outdated Younger generations may not be familiar with the brand Google Maps uses an extensive database with largely up-to-date information.

Threats

Competition
Understanding major competitors, their strengths, weaknesses, main features and marketing strategies will help Avantar understand how to market and develop apps to be widely used by millennials.

Maps is the worlds largest smartphone app with over 54 percent of owners using it.8 The home interface is a map that can be seen in both satellite and standard view. To search for a destination users type into the search bar on the top of the page. For example if a user were searching for the nearest McDonalds he or she would type McDonalds into the search bar. The app would then place a pin on the map to the nearest McDonalds. Then at the bottom

Google Maps
Google Maps is a web-mapping service app that allows users to find directions to a destination by car, foot, bike or public transportation. Google Maps is pre-downloaded to all Android devices and is natively built into the system. It is available for Android and iOS devices. Google Maps use Java Script and a close variant of the Mercator project so it cannot accurately show areas around the poles. As of August 2013 Google

-6-

of the map it would give Strengths Weaknesses the rating for Both iOS and Android, built into Android Re-sizing issues on screen the restau Confusing on how to find directions rant and the Average of 4.4/5 review Accurate information Cannot show areas accurately around distance from Voice navigation the poles the users cur Sometimes places are not up to date rent location. 54 percent of owners using it Customization & Simplicity If the user clicked on that bar more information would pop Opportunities Threats up includ Expand directory Apple Maps is a big competitor ing address, Quickly changing field provides opportu phone numnity for new technology bers, pricing, photos, reviews and the website. It would also allow the gas stations etc. Once a category is clicked on user to save the place and share the destination the app breaks up the broad category into more via Google+, text message or email. To find specific categories. For example if the user directions the user must click on the blue car clicked on eat the subcategories would be local located in the bottom right corner. The user can favorites, restaurants, bakeries, ice cream etc. then modify his or her search, and when finished These entries show ratings and how far away the can click start navigation at the bottom of the destination is from users current location. page. The app then Google maps allows users to login to their takes the user to the Google account and save locations that are often destination one step traveled to like home address and work address. at a time. There is It also allows users to save favorite places and even an option for chance the language. It has tutorials and tips voice navigation for on how to use the app and to send feedback to those driving alone Google. in the car. If a user were unsure of where he or she wanted to eat, instead of searching for a specific place, the app would let him/her to explore nearby different categories such as: eat, drink, groceries, pharmacies, ATMs,

Apple Maps
The Apple Maps application was powered by Google Maps from 2007 to September 2012, when Apple announced its own map app. The app, which features intriguing features such as 3D rendering and flyover capabilities have led to the app being known to outclass Google. However, the release was rocky and a slew of negative press was received. CEO Tim Cook

-7-

actually had to publicly apologize and recommend different apps to consumers while Apple corrected the problem. This led to many individuals downloading other directory apps to fill the gap. The launch itself was named one of the top ten technology fails of 2012.9 The home interface is a map that can be seen in 2D or 3D both by satellite and standard view, as well a hybrid, which is a combination of the two. To search for a destination it is similar to Google Maps. The user types into the search bar the desired destination, and all the nearby locations are shown. For example, if the user was to search for McDonalds he or she would type it into the search bar and pins would drop at the closest locations. If the user were to touch one of the

pins, the name of the destination would come up with the ratings underneath it. The user then can touch the name and a new screen would appear with information about the destination such as the phone number, website, address, reviews and photos. On this screen the user could select, Directions to Here where it would guide the user to the destination from his or her current location, or the user could change the starting point to wherever he or she would like directions from. There are options to choose the mode of travel at this point. Once the navigation has started, there is voice navigation as well as visual when looking at the screen. While taking the user to the destination the navigation includes an estimated time of arrival. The user can also get step-by-step directions if he or she wants written directions rather than visual.

Yelp
Yelp is an American company that operates an online urban guide and business review site. Jeremy Stoppelman and Russel Simmons founded yelp in 2004. It is a publicly traded company with stock valued at $50.20. Yelp is available for both Android and iOS devices. Yelp is a free app with banner advertisements.

Now pre-downloaded onto all iOS devices Preferred app for iOS users Supported all over the world

Strengths

Glitches Does not have the features to explore Apple product exclusive

Weaknesses

Fix minor glitches Better customization

Opportunities

Google Maps a big competitor There have been many negative reviews written about the app Public humiliation after initial launch

Threats

The home interface shows categories of places nearby with a search option at the top. There are also popular store locations nearby with pictures and ratings. Some of the categories include restaurants, bars, gas stations, shopping and deals. Usually, users will start with Yelp to find a destination where they are able to look and ratings and reviews as well as hours directions and additional information such as parking, Wi-Fi, attire and whether or not reservations can be made. For example, if the user was to search for

-8-

McDonalds, a list view or a map view of nearby store locations will appear. From there the user may touch the desired location where they are able to select directions that will then take him or her to Apple Maps or Google Maps. From Yelp users are able to add reviews, photos or share the business via email or text message. In order to leave a review, the user must have a yelp.com account. There is also an option to filter the results to find places with deals, hours of operation or narrow the price range.

Urbanspoon

Has user reviews Unique features like 3D Average of 4.5/ 5 star reviews In iOS 6 can order food from Yelp

Strengths

Create their own map and navigation

Opportunities

Interactive Corporation (IAC) owns Urbanspoon. It provides restaurant information and recommendations that operate in Australia, Canada, New Zeeland, Ireland, UK and the United States. The app is free with with banner advertisements at the bottom of the screen. To navigate through the app the user can search by three ways: shake, nearby and search. The shake feature allows users to lock in either the place, price range or style of food and then the device will generate a place to eat. Once a place is randomly selected you can click on it and it has votes in the top telling how many like it. It also shows Weaknesses people the location on a map, a Reliability of reviews low phone number and the op Some places dont have reviews tion to read reviews. Any Information can be outdated one who has the app can Some users have experienced like or dislike the place. The glitches nearby option shows all the food places closest to the users current location. For each option it shows percentage of people Threats the who like it, the price range White/Yellow pages big comand distance. The third petitor option of search is simple and allows users to type in his or her destination. On the main page it has four

-9-

different categories which are discover, cuisine, price and whats open? These are other ways to explore different restaurant options. Users can create an account and add a restaurant if it is not found on the app.

Easy to use interface Has an average review of 4.6/5 reviews Good for people with a limited diet

Strengths

Not all places have reviews Limited because it is only for restaurants

Weaknesses

Could include other categories other than food Could include own form of navigation

Opportunities

Because it is not all- in-one users may not use it as often Paid reviews

Threats

Competitor Comparison Chart

Avantar
Home interface displays 15 categories Social Media sharing on home display Search bar not on home display Movies has its own tab Has banner advertisements

Google Maps
Voice navigation Interactive map on home display Search bar on home display Cannot share to social media

Urbanspoon

Search option filtering Provides ratings/reviews Provides phone number Provides address Allows user to save favorites

Similarities

Yelp
Three categories on home

Only focuses on food Allows users to check-in Search icon on home display Shake option chooses a place for the user Has percentage rating, not stars

display Featured places on home display No banner advertisements Search bar on home display 20 categories under

- 10 -

Millenial Profile
Demographics
The Millennial generation consists of 80 million people and is also known as Generation Y, Net Generation, Echo Boomers, Peter Pan Generation, Boomerang, Gen Next and iGeneration. The variety of names given to this generation reflect the numerous ways in which the media, politicians, social critics and demographers have defined this group. Millennials are typically defined as those born between the 1980s and early 2000s. According to the Pew Research Center, (Millennials) are the most ethnically and racially diverse cohort of youth in the nations history. Of those ages 13 to 29, 18.5 percent are Hispanic, 14.2 percent are black, 4.3 percent are Asian, 3.2 percent are mixed race or other and 59.8 percent, a record low, are white.10 Millennials are also said to be the least religiously observant. About 32 percent of Americans ages 18 to 29 are not religious compared to the 21 percent of people ages 30 to 49.11 attacks, Enron and WorldCom scandals, the war in Iraq, war in Afghanistan, Nuclear threat from North Korea, emerging nations such as China and India, upheaval in the Middle East and the advent of social media.

Politics
With the rise of the Millennial generation, there has been a large shift in political attitudes across the United States. This generation is starting to take a stance contrary to many older generations in current political topics. The Millennial generation is the least Republican generation in history, with 38 percent considering themselves Democrats, 28 percent Independents and 26 percent Republicans.12

This Republican generation in history.

Millennials do not necessarily accept one party and all of its political stances. They like to mix and match their political standings between parties. For example, while 67 percent of Millennials generation is the least support gay marriage, only 42 percent believe the government should allow illegal immigrants to gain citizenship, something supported by 57 percent of all Democrats. Similar divides include 94 percent of Democrats in support of continuing affirmative action, while only 58 percent of Millennials believe affirmative action should continue in college admissions and hiring. While only 46 percent of Democrats support requiring voters to show ID, 71 percent of all Millennials support voter ID laws.13 Overall, Millennials are more interested in government and politics than the generation before them, but only a third of Millennials regularly follow current events. They are less cynical about politics in general but are increasingly negative about political processes as a whole.14 In a Harvard IOP study, almost 60 percent of Millennials said they think elected of-

Overall median household income for Millennials is low, primarily because many Millennials are students. Average income varies by race, with white Millennials making an average of $33,325, Asians making $29,001, Latinos making $27,263 and blacks making $20,202. Single female Millennials make the least amount per year while male-headed households make the most. This demographic has been shaped by a number of life-changing events. These include the Columbine shooting, September 11 terrorist

- 11 -

ficials seem motivated by selfish reasons, while 56 percent said they believe elected officials do not share the same priorities and values as them. On top of this, 47 percent of Millennials think politics today are no longer able to meet the challenges our country is facing.

Many Millennials want to make a difference in the world, but they do not have confidence they can do so through politics. In 2009, The National Conference on Citizenship reported that Millennials lead the way in volunteering with a 43 percent service rate, compared to only 35 percent for Baby Boomers. More than one-third of American Millennials volunteered in their Sometimes this generation is referred to as the communities in the last year. Among college boomerang or Peter Pan generation bestudents, the volunteerism rate is at 53 percent, cause of the tendency of its members to delay of which 62 percent said some rites of passage they serve at least once a well into adulthood.18 month. As a whole, Millennials consider These nicknames reflect a trend among some Research demonstrates

religious often has the connotation of external, organized spirituality that is connected to cultures and institutions like churches, synagogues and temples. Spirituality, on the other hand, is not tied to sets of procedures or houses of worship.17 The main differences lie in the application and sharing of beliefs. Religion is focused on sharing a certain message with others, while spirituality is an internal journey to find higher meaning.

Relationships

that Millennials are realists and not idealists. About 59 percent of 18 to 29 yearolds said they think their lives will be harder than their parents lives have been. Only 19 percent of those surveyed believed their lives would be better than their parents and only 31 percent of those polled were optimistic about the American economy.15

themselves to be both more spiritual and less religious than generations before them.

Religion

Millennials to live with their parents further into adulthood than those before them. This trend can be caused by a variety of factors including high housing prices, the rising cost of higher education and the affluence of older generations. Unmarried Millennials are much more likely to live with their parents than married Millennials. In 2012, just 25 percent of Millennials were married, compared to 30 percent in 2007.19 According to a 2013 Pew study, only 30 percent see marriage as a priority.20

As a whole, Millen- From: Lifeway Research Survey, American Millennials are spiritu- When asked about who they admire most, Millennials were two nials consider them- ally diverse. August 2009. times more likely to name a famselves to be both more spiritual and less religious than generations ily member, mentor or teacher than members of older generations. However, twice as many before them. About 90 percent of Millennials Americans ages 18 to 29 said they admire an consider themselves to be more spiritual, while 16 rejecting the formal institution of religion. Being entertainer over a politician. Most Millennials

- 12 -

say their generations goal includes fortune and fame.21

Education
This generation is quickly becoming the most educated in history. According to an analysis of recent Census data, more young adults are completing high school, attending college and graduating with degrees than ever before. In 2012, one-third of the nations 25 to 29 year-olds had at least a bachelors degree for the first time ever. Additionally, 90 percent of Millennials are high school graduates22. As of March 2012 about 39 percent of 18- to 24- year olds were enrolled in college, and 63 percent had graduated from college.19 This shift in education among younger generations is caused by a change in public attitudes about the importance of a college education. In 2009, 73 percent of American adults believed a college education was necessary to getting ahead in life, compared to 50 percent in 1978. Part of a reason for this shift could be the Great Recession of 2007 to 2009 which reduced labor market opportunities, especially for the less-educated.22

percent of the older generation. Millennials also show little hesitation in using employer funds to pay for flight upgrades and alcohol.23 Millennial spending on travel and leisure is projected to increase tremendously over the next decade. It is predicted that Millennials will become the primary consumers of airlines, hotels and travel companies. Spending is predicted to reach over half of the market share by 2020. This shows that traveling could be a significant channel for reaching Millennials. Millennials travel less for business but spend the same amount of money per year in travel as non-Millennials. They feel differently about loyalty programs and are less likely to use airline credit cards or loyalty programs. This group is more likely to fly internationally, use low-cost carriers and work to obtain discounts. It is likely that their age contributes to this increase in travel and spending. Fewer Millennials are married or have children compared to older individuals so they spend more money and time on leisurely pursuits. Half of Millennials take four or more overnight trips each year. Millennials are more interested in international travel, are more likely to travel in groups or with family and friends and are more likely than other generations to use travel apps.

Travel

However, Millennials are not currently the dominating market in the travel industry. Strain from According to research commissioned by Expethe Great Recession and other economic factors dia.com and completed by Harris Interactive, the limit the amount of money Millennials can spend. Millennial generation is the most eager generMany Millennials are more focused on dining ation to use company funds during travel. One out, shopping for clothes or saving for more example of this is room expensive and long-term service. Among employed like a home Millennial spending on travel investments, 24 adults surveyed in 24 or a car. countries, 37 percent of Millennials enjoy ordering room service while only 21 percent of those ages 46 to 65 use the service. About 42 percent of Millennials use company money for expensive meals, compared to 26

and leisure is projected to increase tremendously over the next decade.

Smart companies have already been working to engage Millennial consumers and to build brand loyalty so that when Millennial finances stabilize, Millennial consumers will turn to these

- 13 -

companies. Millennials are more likely than non-Millennials to report brand loyalty. However, this is not the case among airlines. Millennials are four times more likely than older travelers to disagree when asked whether they are loyal to an airline. Millennials have an increased dependency on fast Internet connections during travel and are more reliant than any other generation or demographic. Similarly, they are more likely to voice a negative opinion or complaint on social media rather than to staff on-site. For this reason, monitoring of the brand online is the most effective way to reach and understand this generation. According to Bjorn Hansen, divisional dean of the Tisch Center for Hospitality, Tourism and Sports Management at New York University, Highspeed Internet is almost like air to Millennials.25

travel plans. Nearly eight in 10 consider online travel reviews to be somewhat or very important.27 Travel booking companies are becoming increasingly eager to understand the habits and trends of Millennials, realizing the incredible purchasing power and influence they can wield on the industry. According to Expedia CEO, Dara Khosrowshahi, As Millennials increase their decision-making power at work and at home, theyll be increasingly disruptive in both areas of travel, and our aim is to have the right mix of technology, supply and programs to make the most of every trip they take.23

According to a survey by Hilton Worldwide, 84 percent of Millennials are likely to extend their travel plans to explore nearby cities. According to Taylor L. Cole, APR, travel expert for Hotels. Online tools and mobile devices are increasingly com, More young professionals are incorporating leisure time into their business trips to used by Millennials to book travel plans. Thirmaintain a healthy balance between their work ty-two percent of Millennials use a smartphone and personal lives. Because of the blurred lines and 20 percent use a tablet to book business between business and travel, compared to just leisure, more Millennials 12 percent for smartphone ... more Millennials are taking are taking advantage of and nine percent for tablet bookings among those advantage of opportunities to opportunities to explore ages 46 to 5523. They are also more likely to use mobile devices and technology to have a more pleasurable travel experience.

explore wanderlusts while partaking in obligatory travel.

wanderlusts while partaking in obligatory travel.28

Technology is frequently cited as one of the primary reasons for Millennials habits while traveling. Their ability to find and access any and all information may explain the recent trend in Millennials expecting extra perks or upgrades in their travel plans. Many travel organizations are offering more incentives for Millennials or leaving something extra for Millennial travelers.26 Millennials have higher expectations when traveling and are more likely to complain about poor travel experiences and conditions. They are fond of reviews and weigh the information shared in reviews heavily when making decisions about

Millennials are changing their travel habits, with fewer Millennials traveling by car. Millennials largely comprise a generation of walkers, bikers and public commuters. Millennials are less reliant on personal vehicles for daily transportation than those from older age groups, with almost half (45 percent) of 18 to 34 year olds saying they have made a conscious effort to reduce how much they drive.29

Eating Habits
Millennials enjoy eating and have developed some unique eating habits compared to other generations. They are particularly concerned

- 14 -

with what they eat and often want to know where their food comes from and how it is produced. Millennials are willing to pay more for their food because they are concerned about pesticides, treatments and other products that may cause detrimental health effects for consumers. Because of this pattern, organic food has gained popularity among Millennials. Additionally, Millennials are likely to support local food movements, local farmers markets and other efforts. They are also interested in finding local, unique restaurants. Millennials are health-conscious, striving to be aware of the food they eat including its nutritional value, caloric content and the presence of fats and sugars.30 Millennials eat out frequently. According to a survey from uli.org, 38 percent eat out once a week for dinner and 36 percent for lunch. For men the number increases to 45 for dinner and 44 for lunch. Twenty-two percent of Millennials eat out for breakfast one or more times per week. Eighty percent eat out multiple times a month and only one-fifth said they rarely or never eat out. Approximately half of Millennials living downtown enjoy restaurant dinners at least once a week. A quarter of those living in rural areas eat out at least once a week.31 Of the restaurants that Millennials frequent, 40 percent prefer independent neighborhood restaurants and 41 percent a chain restaurant (with or without table service). Interestingly, almost half of those who eat out combine it with a shopping trip.

lennials spending less time with their families as parents worked long hours away from home. Millennials are also increasingly impatient, seeking new and different activities to keep themselves interested and attached. Millennials are seeking a more balanced approach so they can fill that time with family and personal needs.32 When it comes to entertainment, Millennials are also developing unique habits and behaviors. However, their lifestyle has created shorter attention spans and a need to be constantly entertained, something that is forcing businesses to find new ways to reach out to the generation. Men Watch TV Spend time with family Read Listen to/play music Spend time with friends Play computer games Online social networking Cooking Exercise Shop in stores Shop online 58% 38% 29% 43% 41% 42% 28% 16% 25% 11% 16% Women 54% 57% 47% 39% 43% 21% 33% 29% 17% 24% 21%

Recreation
Understanding how Millennials spend their time will provide important insight into how to focus apps and app features toward the target audience. According to ULI, the most popular recreational activities for Millennial men are watching TV, listening to and playing music, playing computer games and spending time with friends.31 For women, the most popular activities are spending time with family, watching television, reading and spending time with friends. Most Millennials also said they would rather do other activities with their family and friends (e.g. shopping).

Leisure Habits
Millennials appear to be pushing for a greater balance and more equal split between leisure and work. This is in contrast to Baby Boomers who grew up under difficult circumstances and believed leisure time was an unnecessary luxury. With the majority of Baby Boomers now exiting the workplace, Millennials are beginning to start their careers and are expecting more time off for personal activities. This may be partly due to Mil-

- 15 -

Millennials are generally fit and spend a large amount of time at the gym. Almost 25 percent of men and 17 percent of women go to gyms or participate in sports. Gyms are also becoming social gathering places for many Millennials. However, Millennials favorite places to get together with friends are: at home (own or their friends) (66 percent), at a restaurant (59 percent), at a bar (30 percent), at a shopping center (28 percent), at a coffee shop (22 percent) and at a park or beach (20 percent). Sixty-three percent of MIllennials say they enjoy going to clubs; however, they do not go frequently. Nine percent attend clubs at least once a month, 16 percent a couple of times a month, 19 percent once a month and 55 percent less than once a month.

ey on hand, they anticipate a larger stream of income as they mature into their 30s and 40s, so they seem to accept their current situations. However, worrying about money will peak in

Movies are also a favorite among Millennials. Seventy-five percent of Millennials go out to the their middle-aged years. Millennials are the least likely generation to say they can make a major movies. Among men, 12 purchase at this stage in percent attend at least 34 once a week, 32 percent Millennials consider money and their lives. Parents are also expecta few times a month, 26 fame to be more important than ing their Millennial chilpercent once a month dren to become finanand 30 percent less than being a part of a community. cially independent at a once a month. For womlater age. Thirty-one peren, the frequency decent of todays parents creases, with five percent believe the age of financial independence should attending at least once a week, 22 percent a couple times a month, 26 percent once a month come at age 25 or older. Despite these seemingly discouraging signs, Millennials are more and 47 percent less than once a month.31 optimistic than their older counterparts. Almost 90 percent of Millennials believe they either have enough money now or will have enough money Generally, Millennials consider money and fame in the future, while only nine percent believe they to be more important than values like self-accep- will not have enough to live the life they want to generation, that number tance and being part of a community, compared live. Among the next 35 rises to 28 percent. to Baby Boomers and those from Generation33.

values like self-acceptance and

Finances

According to a recent Gallup study, about 30 percent of Millennials said they have enough money to do what they want, 55 percent said they feel good about the amount of money they have to spend and 32 percent said they spent too much money yesterday. Although Millennials seem to have less mon-

The economy itself is also affecting decisions of Millennials. More than one in five Americans ages 18 to 34 said they have postponed having a baby because of the bad economy. The same amount said they are holding off on marriage until the economy recovers. Millennials values are reflected in their employ-

- 16 -

ment decisions. Eighty-eight percent said they would choose employers who have corporate social responsibility values that reflect their own. Only 18 percent expect to stay with their current employer for the long term. They also value training and development as the most valued employee benefits.36

Technology & Media Consumption

The Internet bubble and the advent of social media have been some of the events that have shaped the Millennial generation. As Millennials During the 2000s, debt reached an all-time high have entered the workforce, these events have started to affect the way the generation uses the among Millennials, but media and technology. after the Great Recession, the generation was able to Millennials have scarcely known These factors have made Millennials the most lower its debt by the greatlife before the Internet, and technologically savvy generation and most est amount. The biggest click away for that generation. inclined to use technoloreason for this was that gy in every facet of their fewer Millennials owned lives. Millennials have houses and cars. The amount of credit card debt scarcely known life before the Internet, and most from Millennials also fell from 48 percent in 2007 to 39 percent in 2010. However, more Millennials information is only one click away for this generation. are carrying student loan debt. In The way that tech2001, 21 percent nology plays into the of young houseeveryday lives of Milholds held student lennials has created a loan debt, but that fast-paced lifestyle not number reached 40 seen in older generapercent in 2010. tions. Part of this is due to the pervasiveness of As they become the cell phone. Early more prominent cell phones were not members of sofunctional for everyciety, Millennials day use because they have more purwere large and cumchasing powbersome. As cell phone designs became easier er. Nearly 10 percent of Millennials earn over to transport, they became more popular among $100,000 a year and two-thirds earn less than $50,000 a year. As a generation, they have about consumers. Millennials have always been strong proponents for cell phones, but when Apple first $400 billion in annual spending, and about 41 developed smartphone technology, Millennials percent of Millennials have made purchases on latched on to the concept immediately. 37,12 their smartphones. Cell phones provide a way for Millennials to always be plugged in. One study explains that Millennials comprise a generation that craves human interaction. The passage reads, Unlike most Digital Immigrants, Digital Natives live much of their lives online, without distinguishing

most information is only one

- 17 -

between the online and the offlineFor these young people, new digital technologiescomputers, cell phones, Sidekicksare primary mediators of human-to-human connections. They have created a 24/7 network that blends the human with the technical to a degree we have not experienced before, and it is transforming

gamers, or people who enjoy playing video games on a regular basis. Millennials have been affected by video gaming and that effect has even started to show up in the workplace. Video games allow players to get instant feedback and rewards on their plays. These factors combine to create a generation that needs constant feedback from supervisors and co-workers to know how they are performing. Millennials also seek rewards for a job well done, as opposed to older generations that do not seek the same praise. Studies show that Millennials who read online reviews are twice as likely to purchase an item than those who do not use reviews. Millennials trust online reviews from their peers and are savvy at sorting through reviews to find those that are the most credible. Millennials respond very well to personalized messages and options, especially through technology, apps and devices. They are also heavily reliant on the Internet as a primary source of information, with 34 percent of them using the Internet for primary sources of news.41

human relationships in fundamental ways.38

Millennials spend roughly one-third of their waking lives on a computer. The average Millennial spends 17 hours per week on a computer for work and spends the same amount of time on a Through the defining events in their lives, memcomputer for personal use. That totals 34 hours bers of the Millennial generation have become per week on a computer.39 Ninety-seven percent more technologically savvy than members of of Millennials own a comprevious generations. puter and 94 percent manMillennials are far more social- Millennials are far more age a phone. Twenty-eight socially connected and percent own a blog and 44 percent read blogs.40

ly connected and accessible than previous generations.

Television networks (especially the networks that cater to a younger crowd) are fighting to get Millennials attention. The Internet is becoming an increasingly attractive venue to watch programming, because of the variety in programming and scheduling. Television has combatted this versatility with DVRs and other program recording devices. Television is still popular with Millennials, because of this element of customization. Many Millennials consider themselves to be

accessible than previous generations. Millennials use cell phones and the Internet to be constantly connected with their surroundings. Television and video games are affecting the ways Millennials perform in the workplace. Millennials are the most technologically active generation to date.

Social Media
About 75 percent of Millennials have created a profile on a social networking site, and one-in-

- 18 -

five have posted a video of themselves online.

Millennials interact with savvy brands through social media, aligning themselves with brands The number one factor that sets members of the they support and trust. This generation is chang- Millennial generation apart from other generaing with an increased emphasis on staying contions is its use of technology. nected and being engaged in conversation. One Smartphone and Tablet App Users Worldwide, of the worst ways to reach this demographic is by by Demographic, Sept. 2012. long copies of text. The best way to reach MillenGender nials is through short and targeted messages.14 This generation feels the need to be constantly connected. Through their social networks, they keep track of their constantly growing collection of friends. Some of the connections Millennials make through social media would never happen in the offline world. Through social networking sites, Millennials connect with others all over the world. They may also collaborate creatively or politically in ways that would have been impossible 30 years ago. Online friendships are based on many of the same things as traditional friendships shared interests and frequent interaction but they have a different tenor. Online
Smartphone Male Female 56% 44% Tablet 51% 49%

App Use

Age
Smartphone 13-17 18-24 25-34 25-54 55+ 18% 21% 33% 21% 7% Tablet 19% 24% 26% 24% 17%

One mobile app analytics company released a report that reveals how music, media and entertainment apps stack up against the rest. In the findings, it shows which apps Millennials use the most compared to other categories. The leading categories are sports and health and fitness, followed closely by music, media and entertainment apps. U.S. Mobile Phone and Smartphone Penetration by Generation, May 2012. relationships are often fleeting. They are easy to enter into and easy to leave. Millennials use social networking sites far more often than older generations. About 75 percent of Millennials have created a social networking profile compared with just 50 percent of Gen Xers. Only 30 percent of Baby Boomers have created profiles on social networking sites.
Generation Z (18-23) Millennials (24-32) Generation X (33-46) Young Boomers (47-56) Older Boomers (57-67) Golden Generation (66-88) Mobile Phone 95% 97% 95% 92% 89% 85% Smartphone 64% 72% 61% 39% 28% 16%

Research by eMarketer stated that Millennials are the most likely to conduct real-time mobile

- 19 -

searches. Forty-three percent of Millennials used smartphones to decide whether or not to visit a business. Thirty-one percent of Millennials used smartphones to get traffic or public transit information29. The turnover of app use among Millennials is quite high. About 63 percent of the apps used daily Millennials use are different than those used daily one year ago. It is interesting to note that consumers can only focus on a small number of apps at one time, usually about eight apps on average.

Millennials expect a much greater array of product and service selectivity. They have grown up with a huge array of choices and they believe that such abundance is their birthright... They desire ultimate consumer control: what they want, how and when they want it.
Richard Sweeney from Millennial Behaviors & Demographics36

technology and the Internet to stay connected with their surroundings, more than any other generation.

Millennials are unhappy with limited choices.

Richard Sweeney from Millennial Behaviors & Demographics36

The following chart shows the percentage of U.S. mobile phone owners 18-29 who conduct real time-time mobile activities. From Pew Internet and American Life Project May 7, 2012.
Coordinate a gathering Decide whether or not to visit a business Get traffic or public transit info 64% 61% 39%

Look something up to settle an argument 72%

Millennials, by their own admission, have no tolerance for delays. They expect their services instantly when they are ready. They require almost constant feedback to know how they are progressing. Their worst nightmare is when they are delayed, required to wait in line or have to deal with some other unproductive process. Their desire for speed and efficiency cannot be over estimated. The need for speedy satisfaction, or as some believe instant gratification, permeates virtually all of their service expectations.
Richard Sweeney from Millennial Behaviors & Demographics36

A Snapshot of Millennials
...Boomers have given them the confidence to be optimistic about their ability to make things happen, and Xers have given them just enough skepticism to be cautious ... If you want to remember just one key word to describe Millennials, its realistic.
Lynne C. Lancaster and David Stillman from When Generations Collide.42

Millennials are furious when they feel they are wasting their time; they want to learn what they have to learn quickly and move on. Millennials have no tolerance for services that do not continuously and reliably work.
Richard Sweeney from Millennial Behaviors & Demographics36

Values & Beliefs Summary

Millennials value relationships. They are generally close to their parents and are comfortable speaking to those in authority. They see a lot of problems with society today, but they do not believe that politics can fix those problems. They are heavily involved in their communities and

They know the way things go down and are no longer nave about the workings of the world and the intentions of businesses and other organizations.
Peter Sheahan from Generation Y: Thriving and Surviving with Generation Y at Work.42

- 20 -

value finding a cause to support. They have been taught that getting an education is important, and more Millennials have sought after higher education than any other generation. Part of the reason behind obtaining more education is because of the way Millennials view the economy. Most are pessimistic about the economy and the governments ability to fix it. They are, however, optimistic about their futures. Despite all odds, they believe the world will be a better place through volunteerism, technology and innovation. They strive to get educated and make a difference in their communities. They do not look heavily to the institution of religion as a source of guidance. Instead, they seek individual, spiritual experiences to guide them. They value the ability to express their individuality in all aspects of their lives, especially in the workplace. They view jobs as being temporary and many feel they have not received enough training or education to complete their desired jobs. They are an active and health-conscious generation and enjoy spending their free time exercising, relaxing with friends and family, watching television and social networking. MillennialsThey look to people like themselves as their role models, more so their parents, teachers, mentors and coaches.

1 2 3 4 5 6

the ability to express who they are and set themselves apart from large groups.

Individualism Millennials like having

Customization Millennials want information that appeals to them on an individual level. They like being able to pick and choose the information they will see each day, Independence Millennials have their own voices spiritually, politically, philosophically and culturally. Technology Millennials are dependent Skepticism Millennials are constantly

on technology and like having speedy, accurate information at the tips of their fingers. questioning the world around them. They are realists when it comes to their ideas about the future. They like to question large institutions or government organizations that they feel are in the wrong.

opinions of their parents, friends, peers, mentors and coaches. They have postponed certain rites of passage and lived at home longer than any other generation.

Relationships Millennials value the

Because Millennials grew up in the era of technology, they have to have information at their fingertips. They are well acquainted with and comfortable using technology. They are heavily involved in social media and use it everyday, if not multiple times a day. Millennials, more than any other generation, use technology and the Internet to stay connected with their surroundings, more than any other generation.

Ten Key Self-Interests

These ten self-interests provide a summary of key findings about Millennials.

7 8 9 10

most volunteer-oriented generation. They are heavily involved in their communities and enjoy supporting a cause.

Philanthropy Millennials make up the

throughout their adolescence that getting an education is necessary to achieve success.

Education Millennials were taught

Wellness Millennials value their well-being, whether it be physical, mental or emotional. They enjoy exercising and knowing the origin of their food.
have little patience for delays. They prefer to keep their time and commitments flexible to take advantage of better opportunities.

Time Millennials value their time and

- 21 -

Quantitative Sample
A survey was administered to 1,003 respondents in November 2013. The survey was distributed through SSI, a sampling company, using Qualtrics. The survey covered a range of demographic questions as well as questions to understand the habits, beliefs, values and needs of Millennials. All respondents were Millennials (ages 18-34) and owners of smartphones. Half of the sample used directory apps and the other half did not. Below is a summary of the sample, followed by key findings and trends in the data. Survey questions can be found in Appendix A.

Sample Overview

- 22 -

- 23 -

Q4 Analysis
The following sections highlight frequency data for the survey results. Main findings are highlighted in the text throughout, but important conclusions can be drawn from considering all of the data. Survey questions can be found in Appendix A.

How to interpret
- These bar graphs show the mean on a Likert scale where 1 is not important or disagree and 5 is very important or strongly agree.

Key Findings
- Recommendations from real people are more important to Millennials than recommendations from artificial sources like blogs or app stores. - Word of mouth among those who already use the app is incredibly important to help promote the app and will result in more downloads than simply promoting it through more traditional methods.

- 24 -

Key Findings, contd.

- Investment in improving recommendations in the App and Google Play stores will have a tremendous impact, with 48 percent of users considering reviews from these sources very or extremely important. - Despite the difference in means, all the sources of recommendations listed below are important sources of information for potential app users. - Trust of online reviews skews high.

- 25 -

Q7 Analysis

Key Findings
- Millennials would be most likely to uninstall an app due to frequent glitches. - The top three reasons users would uninstall an app are frequent glitches, faulty information and hard to navigate. - Nineteen percent of users would be very likely to uninstall an app due to faulty information. This shows that it is important to consistently update app information and tools.

- 26 -

- 27 -

8a Analysis

Key Findings
- Google Maps is used significantly more than Apple Maps, Yelp, YP Mobile and Urbanspoon. This shows that Millennials prefer to use Google Maps over other directory aps. - The majority of those who use Google Maps use the app more than once a week, compared to the other apps in which a majority only use them once a month. This is likely because Google Maps is built into many other applications and is easy to use. - Of those who use YP Mobile, a significant majority use it less than once a month.

- 28 -

- 29 -

8b Analysis

Key Findings
- Google Maps are used by most app users. Other competitors were not used as frequently but had high-approval in ratings. - In ranking satisfaction with directory apps, respondents ranked Google Maps the highest with a mean of 4.86. Urbanspoon was the lowest ranked at 2.69. All other competitors were much closer, showing the opportunity for Avantar to break through the field and become a primary Google competitor.

- 30 -

- 31 -

Q9 Analysis

- 32 -

- 33 -

Q9

Key Findings
- When considering downloading directory apps, the top four most important features are address, phone numbers, directions and hours of operation. - Features important to mobile app users are business information and the ability to read reviews. By having these features, Avantar could gain the trust of mobile app users. - Fifty percent of mobile app users agreed that the ability to write reviews were either extremely important or very important.

- When asked about each feature individually, the ability to customize was viewed as the least important (though still significantly important). All features were significantly important to respondents.

- 34 -

Q10 Analysis

Key Findings
- Overall, accuracy is more important to Millennials in directory apps than speed and simplicity. - Forty-nine percent of Millennials said accurate information in a directory app is extremely important. - Thirty-one percent of Millennials said the speed of an app is extremely important to them and only 28 percent said the simplicity of an app is extremely important to them.

- 35 -

Q11 Analysis

- 36 -

Key Findings
- Most Millennials find it very or extremely important to search for pizza, fast food, gas stations and banks, indicating a habit of travel or moving. - Other popular search items are grocery stores, movie theaters, hotels, WiFi hotspots and popular tourist destinations. - Only 12 percent searched for other locations, showing people dont really know what else to search for. By coming up with new and innovative location types, Avantar can stay ahead of the industry and provide a unique touch to its apps.

- 37 -

Q12 Analysis

- 38 -

Key Findings
- Users are hesitant to link their social media accounts with directory apps, but they are more likely to do so if they can write reviews for businesses or customize their experience. - Willingness to link social media accounts with directory apps is fragmented, with 59 percent unwilling or unsure if they would be willing to link the app with their account. - Exclusive deals are the most likely motivator for someone to link the app with their social media account.

- 39 -

Trends & Comparison

Key Findings
- Women are more likely to desire features like business information and driving directions while men prefer non-traditional features like parking, customization and voice search. - Women take speed and simplicity into consideration when deciding which directory apps to use. These factors are much less important to men. - Men are more likely to look to online sources for app recommendations, including generic online search and tech blogs. - Individuals who already use mobile phones and apps to search for businesses are more likely to do research when deciding what apps to use. - Those who already use mobile devices to search for businesses are more selective in which apps they use and are more likely than non-users to uninstall apps.

- 40 -

- 41 -

Key Findings
- Those who already use directory apps are likely more familiar with mobile apps and their capabilities and expect a wide-variety of features in their directory apps. They also expect their apps to be higher-performing. Those who do research and have higher-expectations are more likely to uninstall directory apps. - It will be hard for Avantar to get new adoptees among current directory app users if Avantars apps are not stable and fast and include a wide-variety of features. - Millennials, as frequent travelers, are more likely to want to find gas stations and hotels when they are non-students.

- 42 -

Key Findings
- This research shows that those who perform research have a better understanding of features that are available on apps in general. - Those who do research have higher expectations for the directory apps they download. - People who perform research prior to downloading apps will be harder to persuade to download a different app, especially if the new app is a low-quality app or does not have a wide-variety of intriguing and applicable features. - Those who conducted research prior to downloading the app are most likely to use Google Maps, possibly because of its reputation, features and stability. It is likely to be easier to persuade non-users of directory apps to use Avantar apps than to convert those already attached to other apps. - Faulty information is the number one reason people are likely to uninstall an app among both those that complete research and those who do not.

- 43 -

Correlation Findings
Income & Likelihood of searching for a particular business type There is a positive correlation among those with higher levels of income and their likelihood of searching for banks/ATMs (.084), gas stations (.068), movie theaters (.071), hotels (.112) and popular tourist destinations (.115). Income & Features There were varying degrees of positive correlation between those with higher incomes and their degree of preference for particular features in directory apps, including promotions (.064), address of business (.065), website of business (.097), ability to sort results (.09), hours of operation (.077), parking information (.064), ability to read reviews (.078), full customization of the look/feel of the app (.066) and social media connectivity (.069). Education & Feature There are varying degrees of correlation between those with higher levels of education and the features desired in directory apps, including promotions (.084), price range (.064), parking (.104) the highest correlation , voice activated search (.071) and mass transit information (.086).

- 44 -

Qualitative Data
Focus Group Results
Four focus groups were held with 5-10 participants in each. Participants were Millennials and owners of smartphones. While the results from these focus groups cannot be scientifically or statistically generalized to the demographic as a whole, but there are key findings and trends that are important to consider. They are outlined below. The focus groups discussed several areas of mobile phone app development. Participants were asked about their favorite app qualities, directory apps and their opinion of the Yellow Pages app. Key findings are as follows: General Findings They liked user-friendly apps with clean layouts. thoroughness of information (business hours, reviews, ability to see locations on a map, etc.). The participants also appreciated for features that included parking information and daily deals. All said they would be more willing to use an app if they had access to coupons or other promotions. When asked about the importance of reviews, all said they saw reviews as very influential on their decisions. The more reviews, the better and more reliable they felt the app and the locations in the app to be. When asked if they would write reviews, none of the participants would. The biggest reason for not writing a review was the inconvenience, time and trust required to create an account or link social media accounts to apps. They said they would be more likely to leave reviews if they did not have to create an account and would be extremely likely if there were a reward. Focus group participants were given time to download and use the app during the focus group. The following summarize the apps strengths and opportunities for improvement, as identified by the focus groups. Suggestions for Improvement Participants understood the need for advertising in the app, but they didnt like when it was obvious the sorting or search results were negatively affected by sponsored results. A number of glitches were discovered by the users, including incorrect search results, irrelevant search results and duplicate entries.

They did not like when layouts changed significantly every time there was an update. They like being familiar with an app, its features and its uses. Participants said the design/look of the app is the most important quality to them as it can make the app easy to use or confusing and cumbersome. Frequent app crashes lead to frequent uninstalls. Millennials are not interested in purchasing apps in almost all scenarios. Participants said they discover new apps through word-of-mouth, top app lists and by searching for apps that fill a particular need No focus group participants had the Yellow Pages app on their phones, but they all used directory apps frequently. Most commonly were Google Maps, Yelp and Urbanspoon. Respondents said they appreciated the consistency and accuracy of Google Maps, its stability (lack of bugs), easy-to-use interface and the

The more time users spent with the app, the more they enjoyed its features.

- 45 -

 Participants like the colors and layout less and less as they spent more time with the app, though they appreciated its simplicity. Participants wanted the icons on the front to be customizable. It would be more appealing to have the title of each home page button under the icon. Users were confused about what which icon was for. Users wanted auto-fill technology in their app. The name Yellow Pages brought up antiquated images that need to be addressed for the app to appeal to a younger generation. The biggest suggestion for improvement was to offer customization on the Avantar app. From the ability to pick skins, category types and icons, the respondents felt that if they had more control over the apps content they would be more likely to use it. They would be unlikely to continue to use the app if they found repeated misinformation. They did not like the color scheme and pointed out that it did not match the newer, sleeker look of the iOS7 type of design. Again, the opportunity to re-skin the app came up as a strong suggestion. App Strengths They liked the one-stop-shop nature of the app but were concerned about the glitches. The more time users spent with the app, the more they enjoyed its features. Majority said they would recommend the app to their friends, if it came up in a conversation. They liked the simple format, the overall look, and the ease-of-use. They liked that the app also offered categories, sales and coupons. Participants enjoyed that they could share information with their friends, but none felt that they would link the app to their personal social media account because they did not see enough benefits in joining the two. They saw the app as a young persons directory, perfect for students.

Qualitative Survey Results

When answering open-ended survey questions, insights were gained into which app qualities and attributes are most desired. A summary of key findings follows. When asked what they liked about their favorite apps (in general), respondents provided the following reasons: Its fun They get something back (i.e. rewards, points, gift cards, etc.) Social interaction Pictures and visual appeal Up-to-date Easy to use Accurate maps Like to see comments from other users One click Its fast The following points are answers to the question,What features/functionality do you wish directory apps had that they currently do not? Coupons and discounts Check-ins to provide specials Ability to save preferred/favorite locations Weather information about destinations Calendar, Gmail, Facebook, weather, fashion, banks Greater social media connectivity/features More small/non-chain restaurants in their directories Expanded traffic information: Alternate routes, alerts, live traffic conditions, red light cameras, speed traps, avoid tolls functionality Business details Offline use capability Restaurant wait times, menus, and health information

- 46 -

The Perfect App

The following comments answer the question What is your perfect directory app? and provide insight into trends noticed during research. Nothing special. If I want more information I will look up information on a computer first. Get the most important information in an easy layout. Simple in its design and NOT chaotic. A lot of apps try to smash in as many things as possible, I hate that. It would feature mom and pop places and not just well known, high-traffic tourist places. Hidden gems within my own city. Special occasions happening in the area that you are in. Easy to navigate; colorful and modern theme. Interfacing with the phones native navigation functionality and usage of its native mapping app. Integrates with other phone features like tap to text or tap to call. Distance to where I am and different ways to get there, and all the different ways you can get there and the different types of transportation. The ability to search for business quickly and find the most accurate results, with directions to each place using foot, car, or public transport, contact information, and reviews when available. Multiple choices of close businesses (and the lengths away they are from me), correct hours of operation, any promotions they are running currently, option to visit their website, directions from where I am now (in an easy way to get to the map). A list of all chain restaurants, gas stations, grocery stores, etc. that you could always designate to show on the map at all times when youre close. So basically all of your favorite spots easy to find. To the right are graphical representations of respondents app use, as indicated by qualitative survey responses.

- 47 -

Conclusion
By looking at this collection of primary and secondary research, Avantar can better understand the Millennial generation. The company can focus its efforts on creating a product that will best meet the needs of its consumers. Over time, Avantar will ideally create an app that will fit harmoniously into the active lives of Millennials and become an extension of their habits, self-interests and behaviors. To determine what Millennials look for in a directory app, Avantar can turn to a few key findings in this research. Millennials seem to have an independent way of thinking about politics, religion, cultures and volunteerism. They like to mix and match political policies to meet their personal values, and they consider themselves to be more spiritual than religious. These findings suggest that in general, Millennials favor the ability to mix and match features, and they support groups that appeal to their individuality. spend the most time. Appealing to Millennials where they are most comfortable would establish a better relationship between the consumer and the company. Millennials are also the most educated generation in American history. They are informed and involved in their communities. Most Millennials are heavily dependent on technology and demand information instantly. Millennials spend, on average, 34 hours per week on the computer. Another 75 percent have a social networking profile and use social networking as a way to stay connected with friends, family and coworkers. Millennials value relationships and by tapping into those relationships, Avantar could expand its user base. Millennials find person to person communication valuable and trust their peers.They are very low-tolerant of glitches (probably due to the variety of products on the market) with 49 percent citing accuracy as the most important factor of accuracy, speed (31 percent) and simplicity (28 percent). Most Millennials find it very or extremely important to search for pizza, fast food, gas stations and banks. Other popular search destinations are grocery stores, movie theaters, hotels, WiFi hotspots and popular tourist destinations. Users are hesitant to link

Research also shows Millennials are heavy spenders. Because they like to spend, it would be beneficial for Avantar to know the places where Millennials spend the most time. Millennial men enjoy spending their free time watching television, playing computer games, listening to music and spending time with friends. Millennial women spend most of their free time reading, ...they are independent watching television or spending time with family and friends. Millennials favorite places to spend time with friends are at home, restaurants, bars, shopping centers, coffee shops, parks or beaches.

spiritually, politically, philosophically and culturally.

Millennials also spend a large portion of their time traveling. It is projected that Millennials will become the primary consumers of hotels, airlines and travel companies over the next decade. By 2020, Millennials will be the primary consumers of the industry. By looking at these trends, Avantar can build an app that appeals to Millennials in the environments where they

the app with their social networks. Fifty-nine percent say they are unsure or unwilling to connect. However, they are more likely to connect if it gives them access to exclusive deals or write reviews. Google Maps is the most used directory app because it is built into many devices and is easy-to-use. There is a large discrepancy between Google Maps and the other directory app competitors, leaving room for Avantar to compete against Google. Women are more likely to desire directions and business information, while men want parking,

- 48 -

customization and voice search. Women want speed and simplicity, and men want reviews. People who already use directory apps are more likely to do research when deciding what apps to use and are more selective in their apps than non-users. Those who already use them are likely more familiar with mobile apps and their capabilities and expect a wide-variety of features in their directory apps. They also expect their apps to be higher-performing. Those who do research and have higher-expectations are more likely to uninstall directory apps. Users who perform research have a better understanding of features on directory apps and have higher expectations of the app. Of those who conduct app research, they become very loyal, often choosing more stable, renowned apps. It is difficult to persuade them to change their go-to apps. It will most likely be easier to persuade non-directory app users to use Avantars products than those currently hooked to a particular directory app. This information provides an in-depth look at the Millennial generation and an important set of recommendations that should guide how it moves forward developing its mobile app portfolio. Really seeking to understand this generation could launch Avantar into the forefront of mobile directory app development, providing a tool that Millennials become dependent on and use almost as an extension of themselves.

- 49 -

Works Cited
1. Slopes, S. (2009, May 11). Adrian Ochoa interview. Retrieved from http://www.siliconslopes.com/interview/adrian-ochoa-avantar/. 2. Holbrook, B. (2008, December 08). Interview with Michael Alvarez, CEO of Avantar. Retrieved from http://www.appcraver.com/interview-michael-alvarez-avantar/. 3. CNET (n.d.). Miscellaneous home software for Windows. Retrieved from http://download. cnet.com/3150-2056_4-0.html?tag=404. 4. Infographic: 2013 mobile growth statistics. (n.d.). Digital Buzz Blog. Retrieved from http://digitalbuzzblog.com/infographic-2013-mobile-growth-statistics/. 5. Gartner, Inc. (n.d.). 10 cutting-edge mobile application trends for 2012. Retrieved from itbusinessedge.com. 6. Astroturfing. (n.d.). The Jargon File. Retrieved from http://www.catb.org/jargon/html/A/astroturfing.html. 7. Brodkin, J. (2013, September 23). Astroturfers shut down after flooding yelp and google with fake reviews. Retrieved from http:// arstechnica.com/tech-policy/2013/09/astroturfers-shut-down-after-flooding-yelp-andgoogle-with-fake-reviews/. 8. Smith, C. (2013, September 15). Google is the fourth most-used smartphone app. Retrieved from http://www.businessinsider. com/google-smartphone-app-popularity-2013-9. 9. Lashinsky, A. (2012, October 29). Inside Apples major shakeup. Retrieved from http:// tech.fortune.cnn.com/2012/10/29/inside-apples-major-shakeup/. 10. Keeter, P. (2009, December 10) The Millennials. Retrieved from http://www.pewresearch. org/2009/12/10/the-Millennials/. 11. Kapur, S. (2012, October 9) Poll: One In Five Americans Arent Religious A Huge Spike. Retrieved from http://talkingpointsmemo. com/dc/poll-one-in-five-americans-aren-t-religious-a-huge-spike. 12. Abraham, A. (2011, June 1). By the numbers: 50 facts about Millennials. Retrieved from http://www.edelmandigital.com/2011/06/01/ by-the-numbers-50-facts-about-Millennials/. 13. Fieldstadt, E. (2013, October 15) Not that liberal: 5 surprising facts about Millennials and politics. Retrieved from http://nbcpolitics. nbcnews.com/_news/2013/10/15/20973490not-that-liberal-5-surprising-facts-about-Millennials-and-politics. 14. A portrait of Generation Next. (2007, January 9). A portrait of Generation Next. Retrieved from http://www.people-press. org/2007/01/09/a-portrait-of-generationnext/. 15. Fournier, R. (2013, August 26) The outsider: How can Millennials change Washington if they hate it? Retrieved from http://www. theatlantic.com/politics/archive/2013/08/ the-outsiders-how-can-Millennials-changewashington-if-they-hate-it/278920/. 16. Phillips, R. (2010, April 27). Research: Millennials are spiritually diverse. LifeWay. Retrieved from http://www.lifeway.com/Article/ LifeWay-Research-finds-American-Millennials-are-spiritually-diverse. 17. Gibbs, N. (2010, March 11). How Millennials perceive a new generation gap. Time Magazine. Retrieved from http:// content.time.com/time/magazine/article/0,9171,1971433,00.html. 18. Shaputis, K. (2004). The crowded nest syndrome: Surviving the return of adult children. Olympia, Wash.: Clutter Fairy Publishing. 19. Fry, R. (2013, August 1). A Rising Share of Young Adults Live in Their Parents Home.

- 50 -

Pew Research. Retrieved from http://www. pewsocialtrends.org/2013/08/01/a-risingshare-of-young-adults-live-in-their-parentshome/. 20. ABC News. (2013, December 5). World News with Diane Sawyer [Broadcast]. 21. Palmer, K. (2007, December 12). The new parent trap. U.S. News. Retrieved from http://money.usnews.com/money/personal-finance/articles/2007/12/12/the-new-parent-trap_print.html. 22. Fry, R. & Parker, K. (2012, November 5). Record shares of young adults have finished both high school and college. Retrieved from http://www.pewsocialtrends. org/2012/11/05/record-shares-of-youngadults-have-finished-both-high-school-andcollege/. 23. Osborne, C. (2013, October 13). Millennial business travel habits: Spend more, complain more? Retrieved from http://www. smartplanet.com/blog/bulletin/Millennial-business-travel-habits-spend-more-complain-more/32013. 24. Barton, C. & Haywood, J. (2013, March 18). Traveling with Millennials. Retrieved from https://www.bcgperspectives.com/content/ articles/transportation_travel_tourism_consumer_insight_traveling_with_Millennials/. 25. What Millennial guests want. (2012, March 13). Hotel Management. Retrieved from http://www.hotelmanagement.net/technology/what-Millennial-guests-want-15233. 26. Amster, R. (2013, October 17). Millennial clients: Yes they are different. Retrieved from http://www.travelmarketreport.com/articles/ Millennial-Clients-Yes-They-Are-Different. 27. Relaxnews. (2013, October 16). Millennial travel trends paint Generation Y as tech-savvy globe-trotters. Huffington

Post. Retrieved from http://www.huffingtonpost.ca/2013/10/16/Millennial-travel-trends-study_n_4106960.html. 28. Millennials seeking out more leisure activities when traveling for business. (2013, October 3). Retrieved from http://press.hotels.com/ en-us/hpi/Millennials-seeking-out-more-leisure-activities-when-traveling-for-business/. 29. Marketing to Millennials: Executive Summary. (2012, August). Mintel Research. 30. Saleh, N. (2012, January 30). Four Millennial eating habits that are changing the way we eat. Retrieved from http://www.policymic. com/articles/3724/four-Millennial-eatinghabits-that-are-changing-the-way-we-eat. 31. Lachman, M., & Brett, D. (2013). Generation Y: Shopping and entertainment in the digital age. Urban Land Institute. Retrieved from http://www.uli.org/wp-content/uploads/ULI-Documents/Generation-Y-Shopping-and-Entertainment-in-the-Digital-Age. pdf. 32. Leisure generation?. (2008, April 13). Leisure generation?. The Washington Times. Retrieved from http://www.washingtontimes. com/news/2008/apr/13/leisure-generation/?page=all. 33. Richard, J. (2012, March 16). Millennial generation money-obsessed and less concerned with giving back, study finds. Huffington Post. Retrieved from http://www.huffingtonpost.com/2012/03/16/Millennial-generation-study-fame-money_n_1354028.html. 34. Newport, F. & Wilke, J. (2013, June 26). Older Baby Boomers more positive about their finances. Gallup Poll. Retrieved from http:// www.gallup.com/poll/163274/older-baby-boomers-positive-finances.aspx. 35. Taylor, P. (2012, February 9). Young, underemployed and optimistic: Coming

- 51 -

of age, slowly in a tough economy. Retrieved from http://www.pewsocialtrends.org/2012/02/09/young-underemployed-and-optimistic/. 36. Sweeny, R. (2006, December 27). Millennial behaviors & demographics. Retrieved from http://certi.mst.edu/media/administrative/ certi/documents/Article-Millennial-Behaviors.pdf 37. Petro, G. (2013, March 21). Millennial engagement and loyalty make them part of the process. Retrieved from http://www. forbes.com/sites/gregpetro/2013/03/21/Millennial-engagement-and-loyalty-make-thempart-of-the-process/. 38. Palfrey J. & Urs, G. (2013, November 12). Born digital: Understanding the first generation natives. Opposing Viewpoints in Context. 39. Anderson, K. (2011). The Millennial generation. Retrieved from http://www.probe.org/ site/c.fdKEIMNsEoG/b.6601055/k.7A91/ The_Millennial_Generation.htm. 40. Smith, Sara D., and Quinn Galbraith. Motivating Millennials: Improving Practices in Recruiting, Retaining, and Motivating Younger Library Staff. The Journal of Academic Librarianship 38.3 (2012): 135-44. 41. Mangold, W.G., and Katherine Smith. Selling to Millennials with Online Reviews. Business Horizons. 42. Who are the Millennials?. (2008). Who are the Millennials? Deloitte. Retrieved from http:// www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_consulting_hc_millennials_110608.pdf.

- 52 -

Appendix - Survey
Avantar Survey Framework
1. Do you own a smartphone? -Yes -No If no, they will not continue in the survey 2. What operating system does your smartphone run on? -iPhone (iOS) -Android -Windows -Blackberry -Other type of operating system -I dont know. 3. Do you typically perform research prior to downloading new apps? -Yes -No 4. When wanting to download new apps, how important are recommendations from each of the following sources to you? (Likert Importance) -Family -Friends -Reviews of the app by other users in the App Store/Google Play -Tech Blogs -Top/Recommended app lists in App store/ Google Play -Generic online search -Other (please specify) 5. On a scale from 1 to 5, how much do you trust online reviews of apps? (Likert - Trust) 6. Think of the app that you use most often on your phone. Briefly, what is the name of the app, and what causes you to use that app as often as you do? What do you like/dislike about it? [Open Response] 7. How likely would you be to uninstall an app for the following reasons? (Likert Likelihood) -Occasional glitches -Frequent glitches -Faulty information -Outdated look/feel -Hard to navigate -Other (please specify) Directory apps are apps on your phone or tablet that allow you to search for restaurants, movie theaters, and other types of businesses in your area. They typically provide the name of the business, the address, customer reviews, coupons or deals, and other information. A few examples of directory apps are Google Map, Apple Maps, Yelp, Yellow Pages, and Urbanspoon, but there are many others. 8. Have you ever used a directory app to search for a business before? Split the sample on this item/500 yes, 500 no -Yes -No 8a. If yes: How often do you use each of the following directory apps? (Likert often) -Google Maps -Apple Maps -Yelp -Yellow Pages -YP Mobile -Urbanspoon -Other (please specify) 8b. How would you rank your satisfaction with each of the following apps? (Likert Satisfaction) Will only show the apps they marked as using -Google Maps -Apple Maps -Yelp -Yellow Pages -YP Mobile -Urbanspoon -Other (include the app they noted as Other in 8a)

- 53 -

8c. Briefly, what features/functionality do you wish these apps had that they currently do not? [Open Response] 9. If you were considering downloading a directory app, how important would each of the following features be to you? (Likert Importance) -Promotions (coupons, deals, etc.) available within the app -Directions -Price range of businesses -Address of business -Phone number of business -Link to business website, if available -Ability to sort results by various factors (price, distance, rating, etc.) -Hours of operation -Parking information -The ability to READ reviews -The ability to WRITE reviews -Ability to fully customize the look and layout of the app -Connectivity to social media from within the app (to check in, share photos, etc.) -Voice-activated search (like Siri) -Mass transportation information (bus, train, etc.) 10. How important are each of the following factors when considering a directory app: (Likert Importance) -Speed -Accuracy -Simplicity 10a. Which of the following factors would you rate as the most important (pick one)? -Speed -Accuracy -Simplicity 11. If you were to use a directory app, how

likely would you be to search for each of the following types of businesses? (Likert Likelihood) -Pizza -Bank/ATM location -Grocery store -Gas station -Movie theaters -Hotels -Wi Fi Hotspots -Popular tourist destinations -Fast food restaurants -Other (please specify) 12. How willing would you be to link your social media account in order to use a directory app to check in, post pictures, etc.? (Likert - Likelihood) 12a. Would any of the following features make you more willing to link your social media account to a directory app? -Exclusive deals (Yes/No) -Ability to save favorite locations (Yes/No) -Ability to customize my experience (Yes/No) 13. Briefly, if you were to describe the perfect directory app, what features would it have? [Open Response] 14. What is your gender? -Male -Female 15. How old are you? [Open Response] 16. What is your marital status? -Single, Never Married -Married -Widowed -Divorced -Separated 17. Please specify your race.

- 54 -

-White -African American or Black -Asian -American Indian or Alaskan Native -Native Hawaiian or Pacific Islander -Hispanic or Latino -Other: _________________________ 18. What is the range of your annual household income? (Drop Down Item) -Less than $10,000 -$10,000 to $19,999 -$20,000 to $29,999 -$30,000 to $39,999 -$40,000 to $49,999 -$50,000 to $59,999 -$60,000 to $69,999 -$70,000 to $79,999 -$80,000 to $89,999 -$90,000 to $99,999 -$100,000 to $149,999 -More than $150,000 -Prefer not to answer blank 19. Are you currently a student? -Yes -No 20. What is the highest level of education you have completed? -Elementary school -High school or G.E.D. -Two-year degree -Four-year degree -Masters degree -Ph.D, M.D., J.D., EdD or other terminal degree 21. What state do you live in? 22. What is your zip code? 23. Is there anything you would like to mention that was not covered in this survey? [OPEN RESPONSE]

- 55 -