As Gen Z begins to wield their purchase power, they are changing the landscape for retailers in a number of ways. A study from Civic Science examines this generation of 13 to 17 year olds in comparison to Millennials (18 to 34 year olds), and found Millennials tend to be more price sensitive than Gen Z. For example, Millennials are 29 percent more likely to always compare prices before making purchases, and they are 18 percent more likely to be price-conscious when it comes to clothing in particular. One possible reason for this is that given the younger age of the Gen Z consumers, there’s a good chance their parents are still supporting them and making many of their purchases. Therefore, they may not be as inclined to find the best price. However, it will be interesting to track whether their behaviors change as they become more financially independent.
For both of these generations, social media is the best way to capture consumers’ attention. Over half of Millennials and Gen Zers say they are most influenced by social media rather than ads on TV or the Internet. Interestingly, Millennials are more influenced by social media than their younger counter parts, with 58 percent of Millennials who say comments on social media have the most influence on purchases versus 53 percent of Gen Z. Looking at specific social media platforms, Facebook seems to be losing traction with younger generations: 55 percent of Millennials use Facebook daily, compared to 31 percent of Gen Z. Facebook is tied with Instagram as the top social network Gen Zers uses daily, followed by Snapchat and Twitter.