A Snapshot of How GenZ & Millennials Interact with Brands

Earlier this year, Lab42 conducted internal quantitative research to glean deep insights into the GenZ Generation (13-22 year olds), and how this generation compares and contrasts to Millennials (23-34 year olds), GenX (35-54 year olds) and Baby Boomers (55+ year olds). The overall study included detailed questions on the following topics:

1. General attitudes and behaviors
2. Attitudes towards Financial Institutions/Savings
3. Purchasing behaviors/attitudes in the following categories:
   1. Grocery store items
   2. Clothing/apparel
   3. Electronics
   4. Games
   5. Restaurants
4.  General attitudes/behaviors/engagement with brands
5. Attitudes towards employment
6. Data security
7. Online behaviors
8. Media consumption

We put together several reports based on the various topics. This first report focuses on how GenZ’ers and Millennials interact with brands.GenZ’ers are very different in their shopping behaviors vs. Millennials and other generations.  This group shops differently, cares about different product related information, and engages with companies and brands differently. Companies and brands will need to develop tailored marketing strategies to effectively reach and communicate with this emerging group of consumers based on these findings.

• GenZ’ers shop less, and choose to not shop from traditional grocery stores:
  • When it comes to grocery shopping, GenZ’ers shop less frequently than other generations. GenZ’ers are also more likely than other generations to shun traditional grocery stores for neighborhood stores, though GenZ’ers preferred channel for groceries are Mass Merchants.
• GenZ’ers are significantly less likely to be motivated by traditional promotional strategies:
  • Although special promotions/discounts are the most motivating influences for this generation, they are significantly less important to this group than to other generations.
  • Stores and manufactures may have a harder time influencing GenZ’ers decision of where to shop and what products to buy, as traditional marketing promotional strategies like coupons, loyalty programs or points are also significantly less important to this generation. In addition, fast check out, though not as important as competitive pricing, is much more motivating among GenZ’ers vs. other generations.
• GenZ’ers are not as likely to pay attention to package or nutrition labels vs. other generations.
  • 45% skim or do not read package information and 31% rarely or never read nutrition labels.
  • Among those that do look at information, calories per serving is what this generation reviews the most, and at a much higher levels than other generations. GenZ’ers also look at ingredients at similar level as Millennials, and are also interested in serving size and protein content.
  • Information like GMO, fiber, artificial preservatives, and high fructose are not high on this generation’s radar.
• GenZ’ers are still dependent on their parents to a large extent.
  • Parents remain the number one influencer on the buying decisions of this generation, with more than half of GenZ’ers using at least some of their parents money when shopping.
• GenZ’ers are predominantly socially based when it comes to both the way they gather information and the way they prefer to engage with companies and brands.
  • Social media channels used most for both gathering information and engaging with brands and companies are Facebook, Instagram, and Twitter – although this group’s use of Facebook is significantly lower than Millennials.
  • Interestingly, GenZ is much more likely to use Instagram than any other generation, and also more likely to use Twitter and messaging apps to gather information about brands and companies than GenX and Boomers.
  • On the other, hand GenZ is significantly less likely to use review sites than other groups, which may be welcome news for many companies and brands.
• GenZ is much more arm’s length when it comes to engaging with companies and brands, especially when compared to Millennials:
  • 19% do not engage with companies and brands at all – significantly higher than Millennials.
  • 43% never comment and more than a quarter (27%) never “like” a brand or company’s social media page.

Check out our ‘Snapshot of how GenZ and Millennials Interact with Brands’ infographic below. If you’re interested in learning more or receiving the full GenZ & CPG report, please contact us.