Price is not the biggest driver for the first native digital generation

Social media plays a huge role — bigger than pricing — when it comes to influencing the purchase decisions of Generation Z.



That's according to initial findings from IRI's ongoing study into the shopping attitudes and behaviors of Gen Z (individuals aged 21), which has the distinction of being the first native digital generation. It found that Gen Z is two to three times more likely to be influenced by social media than sale or discount pricing when making purchasing decisions, making them the only generation to be more driven by social media than price.



"It is clear that Gen Z will be different from Millennials and the generations before them on many levels — on top of being the most culturally diverse shopper population to date, Gen Zers are already forming unique purchase motivators and preferences,” said Robert I. Tomei, president of consumer and shopper marketing and core content services for IRI. “It will be critical for manufacturers and retailers to have a deeper understanding of these young shoppers as they gain influence and purchasing power, and leverage the power of personalization to reach them."



Initial survey findings from IRI of those aged 14-21 include:



• Brick-and-mortar holds its own against online. Gen Z sees both brick-and-mortar and online retailers being equally able to deliver the brands they want — a large product selection, low pricing and enjoyable shopping experiences.



• Ease of the shopping process has substantial influence. Gen Z is more likely than any other generation to choose a retailer based on how easy it is to find what they want, including Millennials.



• It’s not just a price game for Gen Z. The ability to find what they’re looking for in the store is as important in driving retailer choices as low prices.



IRI’s survey also found that as the first native digital generation, Gen Z expects to find savings at the touch of a button. More than 25% of Gen Z members already engage with retailer apps for discounts and promotions, compared with 33% of Millennials. These findings confirm the digital, social-centric shopper experience Gen Z will seek out, whether shopping online or in-store.



“Our work with Gen Z to date suggests that they reject inauthenticity and being ‘marketed to,’ but they are not against marketing and advertising altogether,” said Lynne Gillis, principal of survey and segmentation for IRI. “What makes Gen Z different is they see and embrace the opportunity to be influencers, whether it’s among their own circle of friends or a broader audience. This has tremendous implications for how brands and retailers engage them in the marketing and advertising process.”