Behavioural Differences of Generation Y and Z Groups in Online Shopping
DOI:
https://doi.org/10.47747/fmiic.v1i1.2188Abstract
The advancement of the internet and technology has helped to shift offline establishments to online, resulting in an increase in online shopping. Age has been demonstrated to influence users' acceptance of online buying and consumers' propensity to shop. This study investigates consumer purchase motivations, with an emphasis on utilitarian and hedonistic impulses, particularly among Generation Y and Z customers. The study employed Logistic Regression models to evaluate online shopping behaviour and determine the key elements influencing purchasing decisions. The study collected data using Google Forms, with 212 respondents. The results showed that Gen Y consumers have utilitarian motive behaviour with the characteristics of full rational consideration in making purchasing decisions on quality, service, and price, such as the ease of product information, like discount prices, and are wise in using technology, while Gen Z has hedonic motive behaviour with the characteristics of shopping for fun and entertainment, value reviews and ratings, very high dependence on technology, speed and convenience. The internet is widely used for shopping, with fashion products being the most popular online. This study focuses on the differences in buying behaviour between Generation Y and Z, highlighting the necessity of understanding customer motivations and perceived dangers when shopping online. As a result, despite certain similarities, their internet shopping habits are diverse.
References
Agrawal, D. K. (2022). Determining behavioural differences of Y and Z generational cohorts in online shopping. International Journal of Retail & Distribution Management, 50(7), 880-895. https://doi.org/10.1108/IJRDM-12-2020-0527
Ateşgöz, K., & Ulukan, C. (2023). ATTITUDES OF Y AND Z GENERATIONS TOWARDS ONLINE SHOPPING. Anadolu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 24(1), Article 1. https://doi.org/10.53443/anadoluibfd.1183785
Atulkar, S., & Kesari, B. (2017). Satisfaction, loyalty and repatronage intentions: Role of hedonic shopping values. Journal of Retailing and Consumer Services, 39, 23-34. https://doi.org/10.1016/j.jretconser.2017.06.013
Bashir, S., Khwaja, M. G., Rashid, Y., Turi, J. A., & Waheed, T. (2020). Green Brand Benefits and Brand Outcomes: The Mediating Role of Green Brand Image. SAGE Open, 10(3), 215824402095315. https://doi.org/10.1177/2158244020953156
Bassiouni, D. H., & Hackley, C. (2014). 'Generation Z' children's adaptation to digital consumer culture: A critical literature review. Journal of Customer Behaviour, 13(2), 113-133. https://doi.org/10.1362/147539214X14024779483591
Brunjes, K. (2019, November 10). Age Range by Generation. Beresford Research. https://www.beresfordresearch.com/age-range-by-generation/Com, M., Phil, M., Com, M., Com, M., Phil, M., & Com, M. (2024). A Comparative Analysis of Online and Offline Shopping. 6(1).
Dabija, D.-C., & Lung, L. (2019). Millennials Versus Gen Z: Online Shopping Behaviour in an Emerging Market. In S. Văduva, I. Fotea, L. P. Văduva, & R. Wilt (Eds.), Applied Ethics for Entrepreneurial Success: Recommendations for the Developing World (pp. 1-18). Springer International Publishing. https://doi.org/10.1007/978-3-030-17215-2_1
Dandapani, K., Lawrence, E. R., & Rodriguez, J. (2018). Determinants of Transactional Internet Banking. Journal of Financial Services Research, 54(2), 243-267. https://doi.org/10.1007/s10693-016-0268-8
Dorie, A., & Loranger, D. (2020). The multi-generation: Generational differences in channel activity. International Journal of Retail & Distribution Management, 48(4), 395-416. https://doi.org/10.1108/IJRDM-06-2019-0196
Dulay, F. A. D., Liban, R. P., & Rustia, J. R. G. (2022). Generation Y and Z Filipino Consumers' Purchasing Behaviour on Electronic Products in Shopee and Lazada. Journal of Business and Management Studies, 4(1), 294-305. https://doi.org/10.32996/jbms.2022.4.1.30
Eastman, J. K., & Liu, J. (2012). The impact of generational cohorts on status consumption: An exploratory look at generational cohort and demographics on status consumption. Journal of Consumer Marketing, 29(2), 93-102. https://doi.org/10.1108/07363761211206348
Evangelista, F., Low, B. K., & Nguyen, M. T. (2019). How shopping motives, store attributes and demographic factors influence store format choice in Vietnam: A logistic regression analysis. Asia Pacific Journal of Marketing and Logistics, 32(1), 149-168. https://doi.org/10.1108/APJML-02-2018-0076
Forsythe, S., Liu, C., Shannon, D., & Gardner, L. C. (2006). Development of a scale to measure the perceived benefits and risks of online shopping. Journal of Interactive Marketing, 20(2), 55-75. https://doi.org/10.1002/dir.20061
Gurunathan, A., & Lakshmi, K. S. (2023). Exploring the Perceptions of Generations X, Y and Z about Online Platforms and Digital Marketing Activities - A Focus-Group Discussion Based Study. International Journal of Professional Business Review, 8(5), e02122. https://doi.org/10.26668/businessreview/2023.v8i5.2122
Hajiyev, J., & Chang, C.-T. (2017). Gen Y Members' Mobile Banking Adoption Intention and Actual Use in Azerbaijan and Turkey: The Technology Acceptance Model and Social Cognitive Theory Approach. Journal of Internet Banking and Commerce, 22(S7), 1-33.
Hall, A., Towers, N., & Shaw, D. R. (2017). Understanding how Millennial shoppers decide what to buy: Digitally connected unseen journeys. International Journal of Retail & Distribution Management, 45(5), 498-517. https://doi.org/10.1108/IJRDM-11-2016-0206
Hamstra. (2021). How Big Brands Are Courting Gen Z With Inclusive Messaging | CO- by US Chamber of Commerce. https://www.uschamber.com/co/good-company/launch-pad/big-brands-court-gen-z-with-inclusive-messaging
Hirschman, E. C., & Holbrook, M. B. (1982). Hedonic Consumption: Emerging Concepts, Methods and Propositions. Journal of Marketing, 46(3), 92-101. https://doi.org/10.2307/1251707
Ho, H. C., & Awan, M. A. (2019). The Gender Effect on Consumer Attitudes Toward Payment Methods: The Case of Online Chinese Customers. Journal of Internet Commerce, 18(2), 141-169. https://doi.org/10.1080/15332861.2019.1584010
Horváth, C., & Adıgüzel, F. (2018). Shopping enjoyment to the extreme: Hedonic shopping motivations and compulsive buying in developed and emerging markets. Journal of Business Research, 86, 300-310. https://doi.org/10.1016/j.jbusres.2017.07.013
Housand, A. (2016). Centennials: The World Is Waiting! Parenting for High Potential, 5(2), 6-9.
Inglehart, R. (2015). The Silent Revolution: Changing Values and Political Styles Among Western Publics: Princeton University Press. https://doi.org/10.1515/9781400869589
Jain, S., Shivnani, T., & Babu, J. M. (2023). A STUDY COMPARING CONSUMER PERCEPTION TOWARDS SHOPPING FROM ONLINE STORES V/S SUPERMARKETS IN INDIA. 27(2).
Kamalul Ariffin, S., Mohan, T., & Goh, Y.-N. (2018). Influence of consumers' perceived risk on consumers' online purchase intention. Journal of Research in Interactive Marketing, 12(3), 309-327. https://doi.org/10.1108/JRIM-11-2017-0100
Kumar, A., & Kashyap, A. K. (2018). Leveraging utilitarian perspective of online shopping to motivate online shoppers. International Journal of Retail & Distribution Management, 46(3), 247-263. https://doi.org/10.1108/IJRDM-08-2017-0161
Kurz, C., Li, G., & Vine, D. J. (2018). Are Millennials Different? Finance and Economics Discussion Series, 2018(080). https://doi.org/10.17016/feds.2018.080
Li, P., & Hassan, S. H. (2023). Mapping the literature on Gen Z purchasing behaviour: A bibliometric analysis using VOSviewer. Innovative Marketing, 19(3), 62-73. https://doi.org/10.21511/im.19(3).2023.06
Lissitsa, S., & Kol, O. (2016). Generation X vs. Generation Y - A decade of online shopping. Journal of Retailing and Consumer Services, 31, 304-312. https://doi.org/10.1016/j.jretconser.2016.04.015
Marques, M. A., Galvão, S., & Silveira*, P. D. (2019). Comparing The In-Store Use Of Smartphones Between Shoppers Of Generations X-Y-Z. 388–399. https://doi.org/10.15405/epsbs.2019.12.02.46
Nwobodo, S., & Weissmann, M. A. (2024). Common traits in online shopping behaviour: A study of different generational cohorts. Global Business and Organizational Excellence, 43(3), 46-60. https://doi.org/10.1002/joe.22236
Pentecost, R., Donoghue, S., & Thaichon, P. (2019). Emerging from my youth - intra-cohort segmentation. International Journal of Retail & Distribution Management, 47(5), 571-588. https://doi.org/10.1108/IJRDM-06-2018-0113
Priporas, C.-V., Stylos, N., & Fotiadis, A. K. (2017). Generation Z consumers' expectations of interactions in smart retailing: A future agenda. Computers in Human Behaviour, 77, 374-381. https://doi.org/10.1016/j.chb.2017.01.058
Rahulan, M., Troynikov, O., Watson, C., Janta, M., & Senner, V. (2015). Consumer behaviour of generational cohorts for compression sportswear. Journal of Fashion Marketing and Management, 19(1), 87-104. https://doi.org/10.1108/JFMM-05-2013-0072
Rue, P. (2018). Make Way, Millennials, Here Comes Gen Z. About Campus: Enriching the Student Learning Experience, 23(3), 5-12. https://doi.org/10.1177/1086482218804251
Seemiller, C., & Grace, M. (2017). Generation Z: Educating and Engaging the Next Generation of Students. About Campus: Enriching the Student Learning Experience, 22(3), 21-26. https://doi.org/10.1002/abc.21293
Shams, G., Rehman, M. A., Samad, S., & Oikarinen, E.-L. (2020). Exploring customer's mobile banking experiences and expectations among generations X, Y and Z. Journal of Financial Services Marketing, 25(1), 1-13. https://doi.org/10.1057/s41264-020-00071-z
Sharma, M. (2022). A Study on the Online Buying Behaviour of the Generation Y in india. Journal of Scientific Research and Reports, 121-127. https://doi.org/10.9734/jsrr/2022/v28i130493
Shetu, S. N. (2023). Do user-generated content and micro-celebrity posts encourage generation Z users to search online shopping behaviour on social networking sites-The moderating role of sponsored ads. Future Business Journal, 9(1), 100. https://doi.org/10.1186/s43093-023-00276-3
Singh, R. (2019). Why do online grocery shoppers switch or stay? An exploratory analysis of consumers' response to online grocery shopping experience. International Journal of Retail & Distribution Management, 47(12), 1300-1317. https://doi.org/10.1108/IJRDM-10-2018-0224
Sohil, F., Sohali, M. U., & Shabbir, J. (2022). An introduction to statistical learning with applications in R: By Gareth James, Daniela Witten, Trevor Hastie, and Robert Tibshirani, New York, Springer Science and Business Media, 2013, $41.98, eISBN: 978-1-4614-7137-7. Statistical Theory and Related Fields, 6(1), 87-87. https://doi.org/10.1080/24754269.2021.1980261
Sramova, B., & Pavelka, J. (2019). Gender differences and wellbeing values in adolescent online shopping. International Journal of Retail & Distribution Management, 47(6), 623-642. https://doi.org/10.1108/IJRDM-08-2017-0173
Strauss, W., & Howe, N. (1991). Generations: The History of America's Future, 1584 to 2069. Morrow.
Suman, S. K., Srivastava, P., & Vadera, S. (2019). Exploring the behaviour of Indian consumers towards online discounts. International Journal of Electronic Marketing and Retailing, 10(1), 78-94.
Tauber, E. M. (1972). Why Do People Shop? Journal of Marketing, 36(4), 46-49. https://doi.org/10.2307/1250426
Taylor. (2019, February 14). Millennial life: How young adulthood today compares with previous generations. Pew Research Centre's Social & Demographic Trends Project. https://www.pewresearch.org/social-trends/2019/02/14/millennial-life-how-young-adulthood-today-compares-with-prior-generations-2/
Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media: Why bother? Business Horizons, 57(6), 703-708. https://doi.org/10.1016/j.bushor.2014.07.002
Villanti, A. C., Johnson, A. L., Ilakkuvan, V., Jacobs, M. A., Graham, A. L., & Rath, J. M. (2017). Social Media Use and Access to Digital Technology in US Young Adults in 2016. Journal of Medical Internet Research, 19(6), e196. https://doi.org/10.2196/jmir.7303
Worldline. (2023). Worldline United Kingdom | New research reveals the changing nature of online shopping habits across Europe. https://worldline.com/en-gb/home/top-navigation/media-relations/press-release/pr-2023_06_20_01.html
Yarrow, K. (2014). Decoding the New Consumer Mind: How and Why We Shop and Buy. John Wiley & Sons.
Zhu, B., Kowatthanakul, S., & Satanasavapak, P. (2019). Generation Y consumer online repurchase intention in Bangkok: Based on Stimulus-Organism-Response (SOR) model. International Journal of Retail & Distribution Management, 48(1), 53-69. https://doi.org/10.1108/IJRDM-04-2018-0071