Consumer behavior is changing rapidly but generation Z is facing it. As the younger generation starts to dominate the market, new trends are evolving faster. Digital Communication is becoming the key factor in connecting with the audience, especially the younger generations. Though Millennials and Gen Z are both younger generations, Gen Z has a special connection. Being born in the Digital Era, Gen Z becomes one of the most important and targeted audiences of the marketing funnel. Hence, understanding the Consumer Behaviour of Gen Z becomes vital that is thoroughly explained in his article.
What is Gen Z?
Gen Z refers to the individuals who were born from the mid-1990s to the early 2000s, the decade after the emergence of the World Wide Web. Millennials (also known as Gen Y) and Gen Z are often combined and share many characteristics, most notably technology savvy and comfort with Global World.
How Gen Z is different from other Consumers?
There are 4 trends to characterize Gen Z as the Consumers:
- Focus on Innovation
Gen Z is naturally comfortable with the virtual world. The Internet was always there for these consumers. Gen Z has always had more choices in the market than other generations. They are not surprised by product obsolescence and feel that constant innovation is given. They are willing to spend on technology and design-based innovations that provide value to them.
- Insistence on Convenience
As Gen Z is unique in many ways, it reflects in their choices. Comfort and Convenience top their priority list. They’re not much worried about the delivery charges and consumer monitoring when compared with the previous generations. According to a survey, it was revealed that Gen Z is not much concerned about Privacy issues compared to Gen Y and Gen X.
- Desire for Security
Gen Z may be more pragmatic and more scarcity-oriented. They become more careful and discriminate about the areas they spend money on. Gen Z is observed to be more Brand Sensitive and less Brand Loyal. For some Gen Z individuals, it serves as a driving force while for some it may lead to a lower than expected lifestyle. Hence, making an impact on the financial status for generational variance.
- Tendency toward Escapism
Gen Z has become a strong marketplace for the products that provide escapism. Many kids of Gen Z are reported to have greater stress and pressure to achieve something at a younger age.
The desire to escape is accelerated due to the technological advances like,
- Mobility based devices
- 24*7 access to social media
- Real and compelling entertainment products
Marketing a product to Gen Z can be tricky but, if taken with the help of influencers and online communities then, it can be done with ease.
How Online Communities Impact Gen Z?
Gen Z is the first group of the generation that has not known a world without the Internet. They’re the most engaged generation on online platforms. This generation has
- Digital Connections
- Hunger for Knowledge
- Unmatched Access to Information
They are always immersed in new information and are always hungry for more.
Gen Z has some behavioral traits that will help in understanding the impact better.
- They spend an average of 2 hours 55 minutes on Social Media
- 50% of them are online for more than 10 hours a day
- 85% of them use social media to learn about New Products and Brands
- They’re 2x more likely to do online purchases compared to millennials
- 65% of them checks Instagram and Youtube on a daily basis
- 80% of them do research before making a purchase
The n number of products and services have been purchased more that are marketed to Gen Z through online platforms like Instagram, Facebook, and Community Platforms like Telegram, MightyNetworks, Twitter, etc.
Gen Z is onboard with the influencers despite being resistant to some form of digital ads. 50% of this generation trust influencer recommendations.
Gen Z prioritizes recommendations and their experiences. To get a clear idea, let us take a look at some facts that are mentioned below.
- 73% of them read and watch reviews to get assurance about the product quality
- 72% of them follow Influencers
- 68% of them read at least 3 reviews before purchasing a product
- 55% of them are influenced by the recommendation of a peer or friend
The need for authenticity in Gen Z can be the key factor for the success of a brand or a product. Collaborating with the Influencers and Online Communities can help in building a brand or in making a product successful.
Gen Z is often referred to as “True Gen” as they analyze the brands and make decisions based on the results. They are more concerned with social activism than the groups before them. Gen Z uses social media and online communities to address complex issues and does their part for good while relying on their favorite brands.