Profiling purchasing behavior of Generation Z

Abstract

Generation Z has emerged as one of the most mystifying consumers as they are tech-savvy, digitally connected and educated users of technologies in the marketplace. These digital natives are predicted to account for around 40% of all consumer shopping by 2020. Their cognitive power and social media networking have made them the market mavens who possess a wide range of information and consumer knowledge about many dimensions of the markets. To be the leader in the marketplace where so many options are available due to the free trade economy, marketers have to escalate their knowhow about their customers if they want to capture the attention of this segment of the market. The chief objective of the study is to find the purchasing habits of Generation Z, specifically from the angle of social influence and technology. A sample of 42 respondents was approached for a survey using a structured questionnaire. The results of this initial study indicate that Generation Z shoppers are coming up with unprecedented shopping habits and preferences. Using cross-tabulation analysis, results showed that some of the most classical influential factors such as product features, price consciousness and family recommendations have a significant effect on the purchasing habits of this generation. However, the results indicate the influence of computer literacy, peer and social influence and social media identity on the purchasing decision of Generation Z. The results of this study can be utilized to assist in predicting potential consumer adoption behavior and in designing favourable shopping environments that are compatible with these specific consumer traits.