Gen Z shows brand loyalty

Warc, 15 February 2013

NEW YORK: Over three fifths of Generation Z say that when they find a brand they like they stick with it, according to a recent survey.

Forrester Research polled more than 3,000 online Gen Z members, aged 18 to 23, for its report How To Build Your Brand With Generation Z and found 62% were prepared to show loyalty to those brands they enjoyed.

"The leading edge of Gen Z is at a pivotal point in their product and brand choices, as they finance their own purchase decisions," Tracy Stokes, report lead and principal analyst at Forrester Research, told Luxury Daily.

And she dismissed the idea that this age group does not care about brands. "They do care about brands," she said, "they just think about them differently."

The challenge for marketers is to understand that thinking, which, for an online generation, is shaped by digital technology and peer opinion.

Word of mouth is an important driver of brand choice, and this can often take place while engaged in another task.

Forrester found that 84% of Gen Z undertake other activities while watching TV, the most common being the use of social media, undertaken by 71%. Chatting with friends about different topics was also cited by 46%.

Browsing the Web (63%), doing homework (57%) and playing games (53%) were among the other popular distractions.

Gen Z is more likely than other generations to trust messages from brands and marketing communications via digital channels, according to the report.

And the brands they prefer will inspire their confidence and demonstrate honesty in business practice.

Other findings in the report include the increased willingness of Gen Z, compared to other generations, to pay more for products with an image they like and to own the best brand.

"Marketers need to create a brand experience that is relevant to their customers' lives but also authentic to the brand," said Stokes.

Data sourced from Luxury Daily; additional content by Warc staff