What Influences Gen Z’s Purchasing Decisions
Gen Z’s purchasing decisions are heavily influenced by their values and the desire for authenticity. This generation prioritizes brands that align with their ethical and social principles. Environmental sustainability, social justice, and corporate transparency are critical factors that Gen Z considers when making purchases. They are more likely to support brands that demonstrate a genuine commitment to these causes, as evidenced by practices such as sustainable sourcing, eco-friendly packaging, and corporate social responsibility initiatives. Retailers and CPG manufacturers need to understand that for Gen Z, buying a product is not just a transaction but a statement of their personal values and beliefs.
Social media also plays a pivotal role in shaping Gen Z’s purchasing behavior. Platforms like Instagram, TikTok, and YouTube are where this generation discovers new products, seeks out reviews, and engages with influencers who impact their buying decisions. Influencer marketing, in particular, is a powerful tool, as Gen Z consumers trust the recommendations of influencers they follow more than traditional advertisements. The visual and interactive nature of social media allows Gen Z to engage with brands on a deeper level, creating opportunities for storytelling and authentic engagement that drive purchase intent.
Price sensitivity combined with a desire for high-quality and unique products further influences Gen Z’s shopping habits. While they are willing to pay a premium for items that meet their standards of quality and ethics, they are also savvy shoppers who hunt for the best deals and value for money. In fact, 32% claim they are motivated to buy the lowest price product and 37% actively seek out sales.3 This generation appreciates transparency in pricing and is adept at using technology to compare products and prices before making a purchase. Retailers and CPG manufacturers must balance quality, price, and ethical considerations to appeal to Gen Z, offering products that not only meet their high standards but also provide tangible value.
