Increased Cost of Living Not The Only Factor Driving Change In Gen Z’s Consumer Behavior
● Youth-centered company Her Campus' Genzology study breaks down the young generation's nuanced perspectives on purchase decisions from where they splurge to the biggest influences.
Gen Z isn’t so young anymore. The much-discussed generation of consumers (currently ages 12 to 27) are in the workforce and have their own money to spend.
To get a pulse on where the adult segment of the Gen Z consumer is today, Her Campus surveyed a pool of more than 2,000 consumers ages 18 to 26 about what is influencing their purchases, how they're buying and what's worth the splurge. Notably, the company's survey respondents represent 82 percent women, 15 percent men and 2 percent nonbinary from 49 U.S. states. Eighty percent of respondents are currently undergraduate college students.
“Her Campus Media is not only focused on providing content for Gen Z but also keeping a pulse of what drives them and what they're doing,” said Stephanie Kaplan Lewis, cofounder and chief executive officer of Her Campus Media.
Lewis said that the survey is “proof that for those on the verge of ‘adulting,' there are a lot of factors to consider.” Among these factors are careers, personal finance, romantic relationships, familial relationships and social media.
“By having this type of insight, brands can better tune into this key audience and provide services and solutions Gen Z actually wants,” she said. “This kind of data is beneficial both for companies trying to market to such a sought-after and influential demographic and also for the Gen Zers who are eager to engage with brands that meet their needs, and that they care about.”
Windsor Western, cofounder and president of Her Campus Media, added that, as a company centered on youth culture, Her Campus recognizes the importance of keeping a pulse on rapidly changing behaviors and trends coming from the Gen Z cohort.
“Our quarterly Genzology survey helps brands decode Gen Z while offering valuable insights into what drives this generation's spending habits and social media usage, and what factors influence their purchasing decisions,” said Western. “For brands looking to connect authentically with this generation, understanding these nuances is essential for crafting effective marketing strategies that foster loyalty while driving business growth in the process.”
Key takeaways from the report include where Gen Z consumers are likely to splurge, with most revealing that they spend primarily on products within the clothing, makeup and skin care categories. Areas where they tend to save include shoes, jewelry and handbags/accessories. Other areas with lower budgets included technology, home decor and subscriptions — likely due to a majority of respondents living at college or home with their parents
(40 percent not currently enrolled in college). A majority of the respondents said that their parents are still paying for phones, insurance and other basic living expenses.
Respondents said they feel
“compelled to make a purchase” when a brand has high-quality products (85 percent), has good reviews (82 percent) and when it's affordable (79 percent). Still important, while ranking substantially lower in priority, were factors like give-back initiatives (26 percent) and vocal support for social causes (30 percent). When making a purchase decision 74 percent said they are influenced by recommendations from friends while 54 percent cited recommendations from micro influencers and 50 percent say they look to macro influencers. Almost 60 percent of respondents said they have purchased products after seeing them on Amazon storefronts.
Researchers from Her Campus found noted that in terms of influence, women were found significantly more likely to say that certain social media platforms influence their purchase decisions. Nearly 80 percent reported they have been influenced by TikTok compared to 54 percent being influenced by Instagram and 27 percent being influenced by Pinterest.
When asked about preferences for their living spaces, 53 percent of respondents said they would prefer to live in an urban area while 38 percent would prefer to live in the suburbs. For a majority (84 percent) aesthetics matters, with consumers saying that interior design is important to them. More than 75 percent said they change their home decor seasonally. Favorite places to shop for home decor were Home Goods, Target, Amazon, TJ Maxx and Marshalls.
For many Gen Z consumers, having a pet is important despite the extra cost. Eighty-five percent of respondents said they feel there is value in having a pet as a young adult citing learning about responsibility, helping reduce stress/anxiety, and increasing joy and emotional support. Thirty-four percent of respondents reported owning their own pets (59 percent dogs, 44 percent cats) and spending an average of $55 per month on their pets. Eleven percent of Gen Z pet owners said they buy matching human/pet accessories monthly.