Bricks or clicks? Factors influencing shopping behavior of Generation Z

Abstract

Research background: Generation Z, a consumer base with significant global impact, strongly relies on smart devices, shaping their unique consumption patterns. As this demographic becomes increasingly influential, understanding their shopping behavior is crucial for effective retail marketing strategies. Purpose of the article: This article aims to evaluate the shopping behavior and habits of Generation Z, particularly focusing on the determinants that influence their choices, with a specific emphasis on the role of smart technology. The objective is to uncover insights that explain the relationship between smart device usage and shopping behavior, offering perspectives for retailers aiming to tailor their strategies to the preferences of this demographic. Methods: A survey conducted during the 2019/2020 season involved 1,756 respondents from the Czech Generation Z. To estimate the relationships between smart device usage and shopping behavior, the linear probability and the logit models were employed. Additionally, descriptive statistics provided a comprehensive overview of respondents’ preferences and habits. Findings & value added: The results indicate that while the average time spent on smartphones does not inherently correlate with an increased preference for online shopping, it does enhance the likelihood of engaging in online transactions. Contrary to expectations, brick-and-mortar stores remain competitive and are slightly more preferred than online shops among the Czech young generation. This preference is attributed to the tangible experience of touching products and immersing in the store's ambiance. Furthermore, a relationship emerges between concerns about data security and a reduced frequency of online shopping, emphasizing the need to address such apprehensions in marketing strategies. Overall, these findings provide insights into the nuanced shopping behaviors of Generation Z, with implications that extend beyond regional boundaries, guiding retailers in adapting and optimizing their approaches to meet the needs of this demographic.