Monday, July 22, 2024

Low prices do not sway Gen Z

Despite the cost-of-living crisis in Australia, new research reveals the online shopping habits of Gen Zs, who prioritise low prices (81%) less than millennials (87%) and older generations (92%) when purchasing from different brands.

The recent survey by software research site Capterra analysed online shopping behaviours and generational differences. The study provides insights into the online buying journey, preferred channels and key purchase influences.

Although Gen Zs are more likely to use social media to discover products, most purchases are made on retailer websites or apps, with price, discounts and quality being significant factors influencing purchase decisions across all generations.

Australia vs the world

As previously revealed by Capterra’s 2023 Consumer Trends eBook, 82% of Australians have already adjusted their spending habits due to the economic situation. The latest survey goes into more detail in analysing the online shopping behaviour of almost 500 respondents in Australia, from a total of more than 5,500 across multiple countries.

Globally, an average of 59% highly consider low prices as the most influential factor when making a purchase online. Australians average higher, with 68% inclined towards low prices. In addition, 67% are also influenced by available discounts or promotions. However, the study shows that Gen Zs contribute the least to Australia’s average.

Susceptibility to online platforms

With the digital revolution becoming more rampant and accessible to younger generations, Gen Zs are exposed the most, making them consider other factors more when shopping online. Multiple methods are utilised by Gen Zs, including search engines (76%) and social media (47%) in seeking new products or services. Social media is most popular among Gen Zs, particularly TikTok. Millennials, on the other hand, visit Instagram the most, while older generations prefer Facebook when searching for new products and services.

The findings suggest that Gen Zs are influenced beyond low price points, as they gravitate more towards visually engaging, short-format video content on social media platforms for product discovery or may be drawn to authentic user-generated content. When it comes to exploring or switching to other brands, Gen Zs shared they are influenced by online advertising (32%) and social media recommendations (42%).

Complex e-commerce landscape

Despite the popularity of social media among Gen Zs and other influences to their online purchase decisions, the online retail market presents disparities across different platforms. Only 10% make purchases on social media, including Gen Zs. All age groups (70%) end up making purchases from individual retailer websites or applications, consistent across older generations (69%), millennials (71%) and Gen Zs (71%). Purchasing from retailer websites can be attributed to brand familiarity, personalised shopping experiences, exclusive offers or discounts and customer support.

Aside from retailer websites, e-commerce marketplaces are also an option however, with varying levels of preference across generations. Gen Zs (44%) end up making less purchases on this platform compared to millennials (50%) and older generations (64%). Gen Zs (36%) are also behind older generations (50%) and millennials (59%) when purchasing from a department store website. The online presence and customer journeys of different generations provide an opportunity for businesses to better understand where their market can be targeted.

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