A Generation's Buying Decisions Have a Major Impact
Each generation brings new outlooks and demands to the consumer market when making purchase decisions. Generation Z is no exception to this rule as more start to enter adulthood and ultimately influence the business landscape through their purchase decisions. Businesses now face a significant hurdle in defining what the key drivers are that affect Gen Z’s buying decisions, as they are poised to become the largest consumer market by 2020.
This infographic created by GreenMatch seeks to explore the importance of sustainability to generation Z and how they choose to support sustainable causes through their purchase decisions.
How consumers choose to spend their money will have a significant impact on the behaviour of companies as they strive to meet changing consumer demands or expectations. Generation Z is continuing the trend set by millennials in choosing to spend more money on goods from sustainable or ethical companies.
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Generation Z differs from millennials concerning brand loyalty. Gen Z is not as receptive to loyalty programmes as the previous generations. However, companies can still garner loyalty from Gen Z through sustainable actions. Gen Z actively seeks out sustainably produced goods and companies when making purchases, with 25% always seeking out sustainable products and 67% doing so some of the time.
Millennials displayed a strong preference towards switching to companies that are more ethical, as 9 out of 10 surveyed said they would switch to a brand that aligns with their values. This trend is being continued by Gen Z, as they show less brand loyalty overall and are more willing to switch to brands that align with their values.
Gen Z goes past merely looking at a label when shopping and strives to understand the company they are purchasing from. If the company does not match Gen z’s values, they are more then willing to switch to a brand that better aligns with their values. In contrast, if they find a brand that better matches their values regarding sustainability, then they are more likely to switch to that brand, even if it means paying a price premium.
Generation Z is more prepared than past generations not to purchase or even boycott companies that do not meet their expectations. 40% of Gen Z that were surveyed have boycotted a company in the past, with an additional 49% considering it in the future. This is a powerful implication that will shape the business landscape to come as Gen Z will shortly become the largest consumer market globally.
The buying habits of Gen Z have yet to be fully discovered, but it is clear that the next generation will change the business landscape through greater consumer activism than past generations.