How does Generation Z Decide What to Buy?

Gen Zers are more idealistic, more confrontational, and less willing to accept diverse points of view. Such behaviors influence the way Gen Zers view consumption and their relationships with brands.

Motivations that drive purchasing decisions.

Millennials were spending money on experiences but not at the expense of material goods. Indeed, they outspent other cohorts in many key categories, such as apparel and footwear. Millennials were also more willing to pay a premium to get exactly what they wanted and were less influenced by brand-owned messaging when it came to deciding what to buy.

Gen Zers are accelerating several trends that millennials started, such as social media engagement and the desire for authenticity. At the same time, they are establishing their own niche. While both age groups look to social media, they do so differently: millennials are more apt to consult the hive mind—the online collective—whereas Gen Zers seek out those they believe are in the know.

What's Different Compared to Previous Generations. 

Gen Z gives new meaning to consumption. for them, consumption means having access to the product/service, not having to own it. They are a more pragmatic and realistic generation of consumers who expect to access and evaluate various information before buying.

At the heart of Gen Z is the idea of embodying individual identity. Consumption means self-expression not just conforming to group norms. Led by Gen Z and millennials, consumers across generations not only want products that are more personalized but are also willing to pay a premium for products that highlight their individuality.

• They like brick-and-mortar stores: in a sense, members of Generation Z are always shopping, because they are always connected. They buy on any device and in any format or channel. At the same time, they are surprisingly old school. They are much more likely to shop in physical stores than are millennials, who were the first generation to grow up with online shopping and who are more likely to shop that way.
• Gen Zers want to stand out, not fit in, so brands are not as important to them. Rather, they are looking for the next unique product. 
• Gen Zers care about experiences, but to them, it is more important to spend on those that enrich their everyday lives, such as hobbies and home entertainment. Millennials are more likely to splurge on things like travel and luxury hotels.
• Almost 40 percent of adult Gen Zers say their purchasing decisions are most influenced by social media. For millennials, not so much.

Edwin Jonathans - Brand Power Plus