By Dr. Tim Sandle
Published April 25, 2024
Gear for venturing into the budding 'metaverse' is expected at the 2023 Consumer Electronics Show, where Facebook-parent Meta will have its latest Oculus virtual reality headset. — © AFP
The companies Centiment and SheerID recently surveyed over 1,700 young people based in the U.S. and UK to better understand their views on the economy and what would drive them to purchase from a particular brand. This group, the so-called GenZ, have income at their disposal; at the same time, they are conscious of the current state of the economy.
The trend is that young people are now tightening their wallets and may need extra incentive to spend. In relation to this, despite recent reports about improving economic conditions, just 30 percent of the consumers surveyed are optimistic about where the economy is headed relative to a year ago.
Gen Z college students have a more pessimistic view of the economy with just 22 percent stating they’re optimistic about the future of the economy while 71 percent plan to actively stretch their budgets and seek discounts.
When asked how the current economy has changed their spending habits, groceries and mobile phone/wireless were the only two categories where Gen Z is spending more than they have in the past. Take out/food delivery, gaming, electronics, and online news experienced the greatest pullback in spending, with 36 percent or more of Gen Z saying they are spending less in these categories.
The survey also explored the role that exclusive offers and rewards play in driving shopping behaviour. Respondents included a total of 1,761 people aged 18 to 26. The report was fielded between March 1 and March 14, 2024.
GenZ college students reported they research exclusive brand discounts before making a purchase, indicating that brands that invest in this approach will generate revenue growth.
In addition, 86 percent of college students and 69 percent of GenZ overall indicated an exclusive offer would increase the likelihood of a purchase. Exclusive offers outperformed other tactics to drive purchasing such as: buy-now-pay-later financing, longer return times, and better customer service.
The number one way in which Gen Z is choosing their preferred brands is through social media with 68 percent of Gen Z and 77 percent of Gen Z college students learning about a new brand through platforms such as Instagram, Tiktok and Snapchat.
Gen Z also relies heavily on the recommendations from people in their respective communities with nearly half of Gen Z college students hearing about new brands through a recommendation from a friend or family member.
In terms of brand loyalty, 29 percent of Gen Z and 40 percent of Gen Z college students said they would switch their loyalty from one brand to another, if they were given an exclusive discount.
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