Model for consumer purchasing behaviour of Generation Z

Abstract

The free market economy and the lifting of restriction of trade across national boundaries have provided the consumer, the opportunity to choose from an increasing product range. As the consumer is spoilt for choice, manufacturers face intense competition to catch the attention of the discerning customer. Generation Z consumers have been identified as unique as they are the first generation of digital natives who are born with digital chromosomes in their DNA. Therefore, this segment of the market differs in their characteristics, needs, attributes and work style from other generations. Their influence and economic power are expected to increase rapidly and their buying power is currently estimated as more than $44 billion. They spend approximately a quarter of their time online, but are known to selectively filter this digital information first, before making the purchase decision. In order to cater their demands with a proper strategy, it is important to investigate the determinant factors of these buyer’s, characteristics and actions. Although there are models like Technology Acceptance Model; theory in information system and theory of reasoned action; theory in social psychology which has been used previously to investigate purchasing behaviour, their ability to factor the unique characteristics of this market segment is questionable. The purpose of this paper is to develop and test an extended research model based on the Theory of Planned Behaviour (TPB) that identifies factors influencing the purchasing behaviour of generation Z. TPB is a well-known psychological theoretical framework which links one’s beliefs and behaviour. It states that attitudes towards behaviour, subjective norm, and perceived behavioural control together shape an individual’s behavioural intentions. The proposed extended model of TPB incorporates the additional constructs of market mavenism, technology self-efficacy and social identity to capture the specific characteristics of the Generation Z. Expert opinion from selected personnel in academia and industry were used to validate the proposed model. Implications of this validated model can be utilized to assist in predicting potential consumer adoption behaviour and in designing favourable shopping environments that are compatible with these specific consumer traits