CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
2.1 Purchasing Behavior
According to the study conducted by Dulay, [Link]., (2022) entitled “Generation
Y and Z Filipino Consumers’ Purchasing Behavior on Electronic Products in Shopee
and Lazada”, even if online marketplaces are becoming more and more popular in the
nation, Filipinos are either meticulous or careless when selecting a product. This study
explained and identified the most important purchase behaviors of electronic devices
on Shopee and Lazada to better understand how this epidemic has affected consumer
behavior variables over the long run for future research. Out of 300 respondents, 210
participants purchased an electronic product/s for their personal needs, and the
findings on most of the purchased electronic product/s in this study are
connection/charging cables. In order to achieve the objectives and collect information
through an online poll, the researchers carried out a quantitative descriptive-
comparative study. According to the findings, product-related details have the most
influence on Filipino customers' purchase decisions. Filipinos wanted to personally
test the electronic device, but they could not since they couldn't buy it online. It is
difficult to base purchasing decision on all of the product information, reviews, and
feedback from previous consumers.
Another study authored by Laato, [Link]., (2020) “Unusual purchasing behavior
during the early stages of the COVID-19 pandemic: The stimulus-organism-response
approach” revealed that unexpected consumer behavior, such as stockpiling toilet
paper, was documented during the COVID-19 epidemic in order to capture human
behavior and in this unusual context. It was analyzed that this behavior when worries
of consumer market disruptions began to circulate. The researchers proposed a
structural model based on the stimulus-organism-response (S-O-R) framework that
links exposure to online information sources (environmental stimuli) to two
behavioral responses: anomalous purchases and deliberate self-isolation. To put the
suggested model to the test called, the researchers collected data from 211 Finnish
respondents via an online survey and analyzed it using PLS-SEM. The study revealed
that there is a high correlation between the desire to self-isolate and the intention to
make uncommon purchases, giving empirical evidence that reported consumer
behavior was directly related to expected time spent in self-isolation. People's
intentions to make odd purchases and actively self-isolate were significantly
influenced by their perception of the seriousness of the issue and cyberchondria. This
result empirically showed that the unusual purchasing behavior observed in March
2020 globally was linked to quarantine preparations. Cyberchondria and perceived
severity had similar effects on the two measured behavioral responses. Thus, although
the two behaviors (unusual purchasing and voluntary self-isolation) are clearly
distinct from one another, both were strictly related to COVID-19 and were predicted
by the same factors.
Another study “Startups and Consumer Purchase Behavior: Application of
Support Vector Machine Algorithm” conducted by Ebrahimi [Link]., (2020) talks about
the influence of startup technological advances and customer relationship
management (CRM) performance on customer involvement, value co-creation, and
consumer purchase behavior (CPB). The hypothesized hypotheses were empirically
evaluated in this work utilizing structural equation modeling (SEM) and SmartPLS 3
methodologies. In addition, this study employed the support vector machine (SVM)
technique to validate the model's correctness. All four kernels were tested to be used
by the SVM method to assess the accuracy requirement. The convenience sampling
method was utilized to collect data for this research. This study employed the standard
bias test procedure. A total of 466 responses were received. Startup technological
advancements and CRM have a favorable and significant impact on consumer
involvement. Customer engagement has a substantial impact on enjoyment value,
economic value, and relationship value. According to the importance-performance
map analysis (IPMA) matrix data, "customer participation" had the highest
importance with a score of 0.782. Customers' overall CPB grows by 0.782 if they
raise their involvement performance by one unit during the COVID-19 outbreak.
Furthermore, the research findings revealed that the lowest performance is associated
with new technology advancements, indicating a tremendous prospect for
improvement in this field. SVM studies revealed that the polynomial kernel is, to a
large extent, the optimum kernel for confirming the model's correctness.
While Husnain, [Link]., (2019) conducted a study about “Personal and In-store
Factors Influencing Impulse Buying Behavior among Generation Y Consumers of
Small Cities” which focuses on the impulsive buying that has been regarded as one of
the most important drivers in increasing retail sales volume. The study investigated
the impact of situational variables classified as personal (time availability, family
influence, money availability) and in-store (store environment, sales promotions, and
friendly store employees) on Generation Y impulse buying behavior in the Pakistani
context in general and the country's small cities in particular. A self-administered
survey was utilized to collect data from 422 randomly selected respondents (who
lived in various cities in Punjab, Pakistan). The Statistical Package for Social Science
(SPSS) and Analysis of Moment Structure (AMOS) was used to examine the data for
structural equation modeling (SEM). Personal variables, such as time availability and
family influence, were shown to have a substantial and favorable impact on the
impulsive buying behavior of Generation Y customers in Pakistan, as were in-store
factors, except for money availability. At the end of the piece, recommendations for
retail management are provided.
Bhalerao and Pandey (2017) also researched about “Consumer Behaviour: A
Literature Review” which revealed many aspects of comprehending customer
behavior. Hawkins, Best, Coney, and Mukherjee (2015) have discussed several
variables that influence consumer purchasing behavior, including demographic and
social influences (family and household), group influence, the impact of advertising,
and internal influences (learning, perception, attitude, etc.) where the individual
judgment was further stressed in the book, with the capacity of an individual to
discern between comparable stimuli involving several characteristics connected to
individual preferences. The article “Impact of Salesperson's Behaviour on Consumer's
Purchase Decision: An Empirical Study” examines the impact/influence of a
salesperson's behavioral traits- ethical behavior, listening capacity, relationship skills,
and emotional intelligence on the concurrent purchasing behavior of the consumer,
where the article ties the theory to practice that the behavior of the customers may be
regulated by the sellers' actions.
2.2 Need
The free-market economy and the removal of trade barriers across national
borders have spoiled the consumer with an abundance of options, with producers
competing fiercely for the attention of the discriminating client. The study "Factors
Affecting Purchasing Behaviour of Generation Z" by Kahawandala and Peter (2020)
is conducted in order to develop an extended research model based on the theory of
planned behavior (TPB) incorporating the additional constructs of market mavens,
technology self-efficacy, and social identity to capture the specific factors influencing
the purchasing behavior of Generation Z. The validated model can be used to assist in
predicting potential consumer adoption behavior and in designing favorable shopping
environments that are compatible with these specific consumer traits. In conclusion,
the Generation Z market category varies from previous generations in terms of
features, demands, traits, and work style. Their economic might are predicted to grow
significantly, and their purchasing power is now estimated to be worth more than $44
billion. They spend around a quarter of their time online, yet are known to selectively
sift this digital information before acting. To properly respond to their wants, it is
necessary to research the determining aspects of this buyer's features and activities.
Erdos (2017) conducted research on "Assessing the Online Purchasing
Decisions of Generation Z" which intends to investigate Generation Z's shopping
patterns and views on online shopping. The first half of this study detailed the online
consumer behavior of Generation Z based on secondary data, while the second part
gives the findings of an online poll (1055 participants). According to the report,
Generation Z youngsters depend mostly on personal experience and weigh quality and
affordability when deciding what to buy, largely dismissing the views of others.
Despite the fact that the internet is their primary source of information, individuals
still seek feedback from others in the majority of situations before making purchase
decisions. A third of young people like to purchase online; but, due to their age and
disposable money, the findings now apply to just a tiny part of this group. In
conclusion, generation Z is sophisticated enough to recognize their need when it
comes to their purchasing decisions.
Schiffman and Kanuk (2007) conducted research that indicates how customers
often look for items based on previous experience before depending on other sources
for information. It indicates that prior buying experience is used as an internal source
of knowledge before making a decision. In other words, previous purchasing history
combined with marketing activities and nonprofit information sources. Previous
research also indicated that consumers often prefer to avoid risk in buying decisions
(Chaipradermsak, 2007). Furthermore, customers go through many stages that impact
their buying choice as well as their post-purchase behavior. The first phase primarily
comprises problem identification, during which customers satisfy their requirements
through purchasing. Advertisers' roles at this stage evolve as they use commercials,
individual selling, and bundling to elicit recognition of desired demands or needs. In
the following stage, customers begin to seek information about the items from either
internal sources (generally from previous encounters) or external sources, such as
friends, family, family members, neighbors, annual reports, productions, salespersons,
web-based social networking, or packaging mark. Finally, clients weigh their
alternatives and choose the brands that best fit them.
Tak and Pareek (2016) have developed their idea on the link between
consumer's need for distinctive dimensions, fashion consciousness, and consumer's
attitude towards luxury goods in their literary work “Consumer Attitude Towards
Luxury Goods: An Empirical Study”. The data reveal that the three variables of
customer desire for uniqueness, fashion consciousness, and consumer attitude toward
luxury companies are all positively connected. As a result, people seek to exhibit their
uniqueness by adopting new fashion brands and designs. This study has significant
marketing implications since it shows that marketers should design an appropriate
method to express the uniqueness of their products. The end outcome also confirms
the possible relationship between fashion consciousness and attitudes toward luxury
brands
The study titled "Consumer Behaviour during Crises: Preliminary Research on
How Coronavirus Has Manifested Consumer Panic Buying, Herd Mentality,
Changing Discretionary Spending and the Role of the Media in Influencing
Behaviour" conducted by Mary Loxton, Robert Truskett, Brigitte Scarf, Laura
Sindone, George Baldry, and Yinong Zhao (2020) focuses on understanding
consumer decision-making processes during crises, specifically examining the impact
of the COVID-19 pandemic. The study utilizes Maslow's Hierarchy of Needs to
analyze consumer motivations and prioritize spending. Maslow's theory categorizes
purchases as "needs" versus "wants" and classifies consumer behaviors into five
levels: physiological necessities, safety and well-being, love and belonging, self-
esteem, and self-actualization. During crises, consumers tend to prioritize satisfying
their basic physiological needs before moving towards more discretionary behaviors.
This hierarchy applies to both advanced and emerging economies, making Maslow's
model valuable for analyzing consumer behavior during times of stress and anxiety,
such as a global pandemic.
2.3 Product
According to the study conducted by Sheikh Qazzafi [Link]., (2019) entitled
“Consumer buying decision process toward products”, understanding consumer
behavior is crucial for the success of business organizations. It involves studying how
individuals or groups of customers make decisions and engage in actions related to
the selection, purchase, use, and disposal of products or services in order to fulfill
their needs and desires. According to different sources, consumer behavior can be
defined as the actions, decision processes, and physical activities that individuals
undertake when evaluating, acquiring, using, or disposing of goods and services
(Engel, Blackwell, and Mansard; Louden and Bitta; Perner, 2019). Personalized
marketing enables the analysis of consumer buying behavior patterns. By studying
these patterns, it becomes easier to predict future trends (Kumar, John, & Senith,
2014). According to Engel, Blackwell, and Mansard, consumer behavior refers to the
actions and decision-making processes of individuals when they purchase goods and
services for personal use. Louden and Bitta define consumer behavior as the decision-
making process and physical activities individuals engage in when evaluating,
acquiring, using, or disposing of goods and services (Chand, 2091). Lerne stated that
consumer behavior involves studying how people, either individually or in groups,
acquire, use, experience, discard, and make decisions about goods, services, or even
lifestyle practices such as socially responsible and healthy eating (Perner, 2019).
According to the study of Klark KB [Link]., (2015) entitled “The power of
product integrity”, in the realm of products, integrity serves as the foundation for
attaining sustainable competitive advantage. When products possess integrity, they
excel in performance, offer good value, and meet customer expectations in every
aspect, including intangible elements like aesthetics and tactile experience. The
journey towards integrity begins with a product concept that reflects the perspective
of potential customers, such as labeling a sporty, subcompact car as a "pocket rocket".
The ultimate integrity of the product hinges on two factors: how effectively the
concept addresses the wants and needs of potential customers, and the thoroughness
with which the concept is integrated into the product's finer details. In highly
successful development organizations, experienced product managers take on the role
of "heavyweights" who lead both these tasks, ensuring the creation of a robust product
concept and overseeing its faithful execution.
Selnes (2019) conducted a study titled "The Effect of Product Expertise on
Decision Making and Search for Written and Sensory Information” discussed that
within consumer behavior theory, product expertise is widely recognized as an
important factor. Previous research has primarily focused on examining how
consumer expertise influences the quantity of information acquired during the process
of consumer information search. However, this particular study suggests that
understanding the differences between experts and novices requires considering not
only the amount but also the type of information sought. The study introduces a
differentiation between two types of information: written and sensory. "Written"
information refers to knowledge obtained through reading, while "sensory"
information pertains to information acquired through the senses of hearing, feeling,
tasting, and seeing.
According to the study of Ali Bhayani [Link]., (2019) entitled “Word of Mouth
in consumers purchase decisions: The moderating role of product type” the influence
of word of mouth (WOM), whether through face-to-face interactions or online
platforms, should never be underestimated. It plays a crucial role in consumer
decision-making processes, whether it pertains to the adoption of new products,
choosing between alternative brands, or even selecting television shows. However,
the impact of WOM depends on the type of product (C. Park & Lee, 2009) and the
level of trust in WOM communications (López & Sicilia, 2014). Trust is a significant
factor in any WOM message, especially for products that carry higher levels of risk.
Consumers may either disregard WOM or actively search for trustworthy cues (Pan &
Chiou, 2011). Trustworthiness encompasses various aspects, as described by Mayer,
Davis, and Schoorman (1995), including the ability (competence and expertise),
benevolence (intention of the message source to benefit the recipient), and integrity
(adherence to guidelines within the relevant domain). While all three aspects of trust
are important, their relevance may vary based on the type of product, which can be
classified as search, experience, or credence products. Search products, such as food
and clothing, can be easily evaluated by accessing available information and making
comparisons without actually consuming the product. Therefore, consumers may not
be as interested in WOM for such products. On the other hand, experience products,
such as vacations, events, and games, present a challenge in evaluation before actual
consumption. Subjective information plays a significant role in evaluating these
intangible products, making WOM more valuable. Credence goods pose the most
challenging scenario as they require specialized knowledge and skills for evaluation
purposes, including higher education, legal services, and consultancy.
2.4 Source
Consumers can choose between rival brands and learn more about products
from a variety of informational sources. Sah Gunja Kumari & Karki Sangita (2020)
stated in their study "The Impact of Media Advertisement on Consumers Purchasing
Behaviour" that in order to influence customer behavior, marketers invest a lot of
money in several media platforms. Every media platform's advertisement has a unique
element that involves the consumer for a variety of reasons. The media habits of
consumers have changed as a result of technological advancement. Therefore, it is
necessary to build a deeper knowledge of advertisements on various media platforms
and their effects on consumer behavior. The research intends to investigate the
connection between consumer purchasing behavior and advertisement dimensions like
printing, broadband, outdoor, and social media. The research results showed a
significant relationship between advertisement medium characteristics and customer
purchase behavior. Additionally, research showed that while internet media were
determined to be statistically unimportant with regard to consumer buying behavior,
printing, outdoor advertising, and social media were statistically significant.
Davidson et al., (2019) "Social Support, Source Credibility, Social Influence,
and Impulsive Purchase Behavior in Social Commerce" also discussed about the
social influence theory or the process by which peers influence a consumer's behavior
can be understood along two dimensions which is either informational and normative.
Furthermore, it is suggested that the antecedent variables of the influencing processes
in this context should be the reliability of the source and social support. The findings
showed a strong correlation between both types of social influence that could have an
impact on a consumer and peers' knowledge and reliability. Additionally, the sharing
of information and emotional support among consumers greatly promotes social
impact.
Another study of Kahawandala (2020) “Profiling Purchasing Behavior of
Generation Z”, marketers must advance their understanding of their clients if they
hope to attract the interest of this market segment in order to be the leader in a country
where there are so many options available due to the free trade economy. The study's
findings show that Generation Z consumers are developing previously unheard-of
shopping tastes and practices. This generation's shopping habits are significantly
influenced by some of the most traditional influencing variables, including product
attributes, price awareness, and family recommendations. The findings of this study
can be used to help predict upcoming consumer trends because they show the
influence of computer literacy, peer and social influence, and social media
identification on Generation Z's purchase decisions.
Shruti Gulati (2017) “Impact of peer pressure on buying behavior”. Numerous
factors influence a consumer’s decision to buy a good, service, or commodity. A
purchase is influenced differently by each factor. While some may encourage
purchase, others may discourage it. One of those one-of-a-kind pushes that a rational
consumer takes into consideration prior to making an actual or potential purchase of
any product or service is peer pressure. Peer pressure appropriately puts tension of the
friend or the people encompassing for any activity, purchasing being the applicable
one for this situation.
In the study “Family and Consumer behaviour” by Chandrasekar and Vinay
Raj (2013), it states that customers are most influenced by their families. Buyer
behavior can be significantly influenced by family members. In the buyer's life, it can
distinguish between two families. One is the purchaser's folks who make up the group
of direction. From guardians an individual procures a direction toward religion,
governmental issues, and financial matters and a feeling of individual desire, self-
esteem, and love. The other is the group of reproduction the purchaser's companion
and kids apply a more straightforward impact on regular purchasing conduct. The
roles and proportions of the husband, wife, and children in relation to the purchase of
numerous goods and services are of interest to marketers. There are three principal
components straightforwardly impact the family utilization. The family's structure and
decision-making process are the family life cycle. The purpose of this report is to talk
about how the family influences how people buy things.
2.5 Price
Previous studies have shown that generational differences have an impact on
purchasing behavior in terms of price. The result of the study conducted by Al-
Salamin et al. (2015) entitled “Behavioral Measurement of Young Generation towards
Brand Products in Saudi Arabia: Al- Hassa Case Study” showed that the price of well-
known brand products affects the purchase process negatively. Although young
people are interested in purchasing brand products, their low income prevents them
from the buying process while they are considered as a major segmentation for brand
names. Another study by Kotler & Keller (2012) stated that price is the one element
of the marketing mix that produces revenue; the other elements produce costs. The
study also stated that purchase decisions are based on how consumers perceive prices
and what they consider the current actual price to be. Understanding how consumers
arrive at their perceptions of prices is an important marketing priority. Sata (2013)
stated that consumer value price followed by mobile phone features is the most
important variable among all and it also acted as a motivational force that influences
them to go for a mobile phone purchase decision.
In the study "Impact of Pricing and Product Information on Consumer Buying
Behavior with Customer Satisfaction in a Mediating Role" by Huiliang Zhao et al.
(2021), the authors emphasize the significance of the relationship between product
pricing and product packaging in influencing consumer buying behavior. They
highlighted the role of customer satisfaction as a mediator in this relationship. Given
the competitive market with diverse commodities, product varieties, consumer
preferences, and ethnicities, both pricing and product packaging information have a
substantial impact on consumer buying behavior. To gain insights into the cumulative
effects of pricing and packaging on consumer buying behavior across different
ethnicities, further research in marketing is necessary. It is important to note that
consumer satisfaction plays a decisive role and acts as a mediator in shaping
consumer buying behavior. Previous studies have indicated that pricing significantly
influences consumer buying behavior, with higher-priced products expected to have
lower sales volume, while products priced below the market rate are assumed to sell
in higher quantities. The research also suggests that pricing holds greater importance
in relation to consumer buying behavior.
A research study titled "Influence of Pricing on Consumer Buying Behavior"
conducted by Reeti Rajan and Kunal Oswal (2022) highlighted the importance of
understanding consumer buying behavior and the various factors that influence it. The
study specifically focuses on the role of price as a significant parameter within
personal factors. The pricing of a product or service has a substantial impact on how
consumers behave. If consumers perceive the price as lower than that of competitors,
it can lead to a significant increase in sales. Conversely, if the price is considerably
higher than expected, the response from consumers may be disappointing. Thus, any
change in price can yield unexpected outcomes in terms of consumer buying
behavior.
2.6 Timing
Brunsø, [Link],. (2017) revealed that younger generations tend to make more
impulsive purchases at any time of the day, while older generations prefer to shop
during traditional working hours. This trend is further supported by Laroche et al.
(2013), who found that older generations value in-store service and prefer to shop
during off-peak hours to avoid crowds. In addition to generational differences, timing
variables such as time of day and day of the week have also been shown to impact
clothing purchasing behavior. Sinha et al. (2019) found that online clothing retailers
experienced the most traffic and sales during weekday evenings, while weekends
were a bit quieter. Time of day has also been shown to impact online purchasing
behavior, with research indicating that consumers are more likely to make purchases
in the afternoon, rather than in the early morning or late night (Mourali et al., 2005).
Time is a valuable commodity that customers give up in order to shop. It can affect
consumption in three forms: time pressure, time of year, and time of day. Time
pressure is caused by customers not having enough time to process information, time
of year is caused by the changing seasons, and time of day is caused by the circadian
rhythm. To counteract this, many people turn to energy drinks and caffeine in the
morning hours. (Friesner, 2014)
According to the article "How each generation shops in 2023" by Maxwell
Eskiev, the generational buying patterns for clothing can vary when general
breakdown of when each generation tends to purchase their clothing needs.
Generation X typically buy their clothing needs as and when required, based on their
personal preferences, fashion trends, and budget. Generation X individuals are likely
to prioritize quality and durability when purchasing clothes. Generation Y, also
known as millennials tend to purchase clothing based on their personal style, current
fashion trends, and convenience. They are likely to be early adopters of online
shopping and may prefer a mix of in-store and online purchases. Generation Z, this
generation is often characterized by their strong connection to digital technology and
social media. Generation Z tends to buy clothing more frequently than previous
generations, influenced by fast-fashion trends and online shopping. They value
affordability, variety, and the ability to express their individuality through clothing.
It's important to note that these general trends may not apply to every individual
within each generation, as buying behaviors can be influenced by various factors such
as personal preferences, financial situations, cultural differences, and regional trends.
(Square Publication, 2017)
It's a simple fact that clothes wear out and styles change. This means that it is
inevitable that everyone needs to repair or replace clothing once in a while, even those
who absolutely despise shopping for new clothes. Different seasons have different
types of clothes. For example, the summer season has summer clothes. The winter
season has woolen clothes or clothes which keep our body warm. The rainy season
has clothes which protect us from the rain. Like most consumers, Generation X
typically purchases clothing when the seasons change. This includes buying warmer
clothes for the winter months and lighter, more comfortable attire for the summer.
(Doren Blooch, 2020).
The demand for fashion to be fully accessible has led to the increasing
influence of social media in the clothing shopper journey. 30.4% of UK clothing
shoppers use social media to inspire their clothing choices, up 2.5% from the previous
year. As a result, retailers must respond by having an active online presence across
different platforms and take full advantage of changing consumer behavior by using
social media as a means of connecting with shoppers and improving shopper
engagement. According to the HubSpot report in 2020, millennials often buy clothes
because of the social media influence. This generation is often characterized by their
strong connection to digital technology and social media. Generation Y is highly
influenced by social media platforms, where fashion influencers and brands showcase
new styles and products. Millennials may be prompted to buy clothes after seeing
them featured on social media platforms like Instagram, YouTube, or TikTok.
In today’s world, fashion is a way of life. Like other basic needs (such as food,
water, and shelter), clothing is also one of the most essential elements of life. People
remain concerned about their dresses. Their occasions decide the type of dress, as
every occasion has a defined fashion style, such as office wear, party wear, casual
wear, festival wear, marriage wear, etc. In addition to this, if people follow fashion
trends, they are noticed by their friends, colleagues, relatives, and even by strangers.
Likewise, fashion trends do play a major role in human life. Generation Z tends to
buy clothing more frequently than previous generations, influenced by fast-fashion
trends and online shopping. They value affordability, variety, and the ability to
express their individuality through clothing. It is important to note that these general
trends may not apply to every individual within each generation, as buying behaviors
can be influenced by various factors such as personal preferences, financial situations,
cultural differences, and regional trends. (Square Publication, 2017)
2.7 Generation
According to the study by Aggarwal, M., Rawat, M. S., Singh, S., & Gauba, P.
(2017) entitled “Generation Gap: An Emerging Issue of Society”, the concept of the
generation gap has been present for a significant period, but in recent years, it has
gained more prominence in our society and is now recognized as a major problem.
The generation gap refers to the differences in personal choices, opinions, and
perceptions between different generations, leading to conflicts and gaps among family
members. It not only affects relationships but also impacts day-to-day activities,
largely due to technological advancements and a lack of communication between
younger and older generations. The generation gap has caused a division in familial
relationships. Efforts and studies have been undertaken to understand the root causes
of this issue and to find potential solutions to mitigate the growing conflicts between
different generations.
Dhalla and Dhalla (2022) conducted a study “To Study the Generation Gap
and Personality Profile’s: An Explorative Study” which focuses on the generational
gaps or the differences in personal choices, opinions, and perspectives among various
generations, leading to conflicts and gaps within families. This issue is particularly
prevalent between younger individuals and their older counterparts, although it is
expected to be even wider between grandparents and grandchildren. The generation
gap is influenced by several factors, with three key trends being parenting styles,
advancements in technology, and economic conditions. The study also examined
dimensions such as social expectations, economic development, distinct attitudes,
communication gaps, education, and technology in order to better understand and
identify areas of congruency between generations.
Neil Howe and William Strauss discuss the new generation gap in their paper
titled "Gen X Papers: The New Generation Gap." The research highlighted the
contrast between the Boomer-like generations, who tend to take more credit and
accept less blame, and Generation X, referred to as Thirteeners. The authors suggest
that the ongoing generational conflict between the Boomers and Thirteeners is
expected to worsen in the coming decade. However, history provides insight into how
this new generation gap might eventually resolve itself. Drawing from the experiences
of previous generations, the authors propose that as Boomers transition into old age,
they will likely reduce their criticism of Thirteeners. This shift is anticipated to occur
once Boomers witness their values becoming deeply ingrained in American
institutions and their focus turns towards a new and more optimistic post-Thirteenth
generation.
Valaei and Nikhashemi (2017) also conducted a study titled "Generation Y
consumers' buying behavior in the fashion apparel industry: a moderation analysis."
The research findings revealed that among Generation Y consumers, brand and self-
identiProfiles significant role in shaping their attitudes towards fashion apparel.
Additionally, factors such as brand, style, price, and social identity were found to
have the most influence on Generation Y consumers' purchase intention for fashion
apparels. However, the study also revealed that style, price, country of origin, and
social identity did not significantly impact Generation Y consumers' attitudes towards
fashion apparel. Furthermore, there was no relationship observed between country of
origin or self-identity and the purchase intention of Generation Y consumers.
Silvia Puiu (2016) "Generation Z – A New Type of Consumers". Generation Z
possesses distinct characteristics, and their preferences, ideas, behaviors, decisions,
and preferences differ from those of previous generations, including their inclination
towards staying connected with friends, using social media and the internet, rather
than engaging in traditional activities like playing games or checking emails. As a
result, companies should shift their focus towards word-of-mouth marketing and
social media channels, rather than relying on newsletters. To effectively engage this
new generation, companies need to adopt innovative marketing strategies. Havas
People's e-book provides six tips for companies to enhance their relationship with
Generation Z, including creating attention-grabbing and concise content, utilizing
visual elements, developing shareable content, promoting diversity, and establishing
rapid communication through social platforms.
2.8 Purchasing Behavior of Generations X, Y, Z.
According to Nasution, [Link]., (2021) in the research “A comparative study of
generations X, Y, Z in food purchasing behavior: the relationships among customer
value, satisfaction, and Ewom”, the COVID-19 pandemic has fundamentally changed
many aspects of lives, including business and consumer behaviour. This research
examined how Generations X, Y, and Z changed their food shopping habits
throughout the epidemic. The study also investigates the links between customer
value, customer happiness, and eWOM across three generations. It revealed that (1)
Gen-X, Gen-Y, and Gen-Z perceived different value during the pandemic, (2) Gen-X
was found to be the cohort that is most concerned with safety value in selecting food
compared to the other two cohorts, whereas Gen-Y is the cohort with the highest
concern on information value, (3) customer value has a significant impact on
satisfaction and eWOM for Gen-X and Gen-Z, but not for Gen-Y. The study
emphasized managerial consequences and future research areas.
Another article written by Richardson (2018) the “Generation face-off:
comparing Gen X, Y and Z shopping behaviors” disclosed the distinction of the
purchasing behaviors of the different generations. Businesses find it challenging to
categorize or approach Gen X in terms of marketing because they are today's most
smart and informed consumers. In the United States, 35% of Gen Xers have a college
degree, whereas only 19% of millennial's have and because of that, they grasp the
concept of value and are more inclined to stick with a certain brand. Millennial's, like
Gen Xers, seek value. However, it is discovered that people value experience and
sincerity over connections. And lastly, Gen Z and millennial's share many
characteristics, such as digital savvy and a love of social networking. These
characteristics, on the other hand, are becoming more prevalent in all aspects of life –
and with increasingly modest displays. Remember, most Gen Zers have spent the
majority of their lives using a mobile device. They are accustomed to using mobile
internet, applications, and social media.
As for “The Impact of Generation X, Y, Z, and Lifestyle in Selecting
Preference Retail Mediated by Brand Image Variable”, a research conducted by
Setiasih (2017) which aims to examine the influence of Generations X, Y, and Z, as
well as lifestyle, on retail selections using brand image factors. Based on the data
obtained from the questionnaires filled out by respondents from generations X, Y, and
Z, it can be concluded that the majority of respondents visited some modern stores
based on brand/store name that has been known by the community, from all circles,
which has been proven quality and diversity of products and services provided, in
addition to the influence of certain parties such as families who also perform other
activities in the community.
The study titled "Buying Behaviour of Generation X, Y, and Z Consumers: A
Study on Luxury Products" conducted by Shubham Chaudhary and Dr. Amitabh
Bhargava (2021) focuses on the growing interest in luxury brands and the
demographic differences among generations in the luxury market. The luxury market
has experienced significant growth, with an anticipated tri-fold increase of €223
billion over 20 years. The older generations, known as maturing baby boomers, born
between 1946 and 1964, have shifted their focus from luxury products to luxury
experiences and have already achieved affluent lifestyles. Generation X, the offspring
of baby boomers, share a strong connection with their favorite luxury brands and are
willing to pay any price to acquire their products. Generation X includes individuals
born from 1961 to 1981, while their successors, Generation Y or Millennial's, were
born from 1982 to 2005. Millennial's are expected to become the highest-spending
generation and capture a significant market share by 2026 to 2029. Therefore, it is
crucial for marketers and businesses to target both Generation X and Generation Y
consumers.
The study “The Impulse Consumer Behavior of Generations of X, Y, And Z”
by EduBirdie (2022) focuses on the concept of impulsive purchasing behavior across
generations X, Y, and Z. According to the data, 85.83% of the 122 respondents made
impulsive purchases in the recent six months, while 14.17% did not. Discounts and
deals, excellent buying pleasure, social trends, and peer pressure, and the fear of
missing out (FOMO) are all motivated respondents. This conclusion is comparable to
that of Sundström et al. (2013), who discovered that consumers with discounts and the
capacity to negotiate are simple to win. Friends' motivation, primarily through
photographs on social networks, influences the buyer's impulsive inclinations. Other
favorable triggers for purchasing decisions include free shipping and returns, as well
as the notion that the shop is trustworthy to the buyer. When people are excited,
bored, unhappy, furious, or inebriated, they make impulsive purchases. This finding is
comparable to that of Sundström et al. (2013), who discovered that customers desire
quick gratification as well as a sense of pecuniary contentment. Respondents in the
survey see impulsive purchases as a technique to gain immediate stimulation in a
bored state of mind, not as anything undesirable.