The young people of Generation Z (Gen Z) appear to challenge beliefs, attitudes and expectations of preceding generations in different areas of life (e.g., work, social affairs, and consumption). Gen-Zers (also called Zoomers) are critical of the older generations and set different priorities. The differences or gaps in opinions and behavioural tendencies create tensions between the Gen-Zers and the Millennials, Gen-Xers, and seemingly also with (Baby) Boomers, but inter-generational tensions prevailed earlier among the preceding generations — Gen-Zers are therefore no exception.

• Six generations since 1920 are commonly divided along the time scale by year of birth as follows: Silent (born 1920-1945), Baby Boomers (1946-1964), Gen X (1965-1980), Gen Y or Millennials (1981-1996), the Gen Z (1997-2012), and Gen Alpha (2013-to date). Part of the Gen-Zers are not adults yet. While it is argued that current tensions with Gen-Zers are even more acute, fierce tensions also arose before, revolving around the Boomers (in the 1960s-1970s) and the Millennials (2000s-2010s).

Streetbees, an AI-oriented research firm, carried out a study of young consumers (adults ages 18-27) from Gen Z, including segmentation within the generation cohort, and a comparison to the three generation cohorts preceding them (“Breaking the Bias”, November 2024 [1]). Gen Z is at the core of the sample, comprising 56% of respondents (total n=5,491). The portions of participants from the three older generations are decreasing: Millennials (ages 28-43) 27%, Gen-Xers (44-59) 14%, and Boomers (60-69) 3%. It should be kept in mind that the participants from the preceding generations are included primarily for the purpose of comparison to provide a broader perspective in understanding Gen Z; it raises, however, some points of concern about the sample, warranting caution in comparisons (particularly regarding the relatively small group of Boomers, ~150, and the age range being truncated).

The research of Streetbees is especially characterised by the application of a conversational approach in conducting a consumer survey. The interviews are interactions in the form of chat-like conversations (app-based) using the proprietary SBX platform of Streetbees. The interviewer is a ‘smart’ AI-enabled agent, and the methodology applies the technological capabilities of AI in interpreting open-end verbal responses (NLP) and composing questions (generative AI). The survey may include structured closed-end questions but is primarily based on open-end answers, which give participants greater freedom of expression, while the system can comprehend their verbal answers and react to them in real time and later analyse them. The participants in this study originated from ten countries worldwide (United States, France, United Kingdom, Poland, Saudi Arabia, Brazil, Mexico, South Africa, India, and Indonesia).

Seven segments of Gen Z consumers were identified in the research study, arranged into four headline pillars. They are presented in a nutshell in the table below (including their proportions) to provide orientation for the discussion that follows:

Practicality & Affordability	Quality & Reliability	Ethics & Sustainability	Innovation
Price Pragmatists (26%)	Honesty & Transparency Seekers (14%)	Ethics Enthusiasts (15%)	Creative Pioneers (14%)
	Quality & Sustainability Seekers (10%)	Eco-Conscious Champions (9%)
		Inclusivity Advocates (7%)
Total P & A 26%	Total Q & R 24%	Total E & S 31%	Total I 14%

A leading argument of the research report of Streetbees, demonstrated through their findings, is that some of the perceptions or beliefs of people, particularly from the older generations, about Gen Z are inaccurate or misguided; therefore, it is proposed that if the real goals and priorities of young Gen-Zers were better understood, the gaps in viewpoints could be narrowed and tensions reduced. It is a noble suggestion even though it may be more difficult in practice to persuade the preceding generations to accept some of the expectations and claims of Gen-Zers. Yet in some areas the older consumers may hold similar views and preferences that are actually not less prevalent than among the Gen-Zers; it could be a matter of emphasis on issues in particular segments that lead to contentions.

It is impractical to delve into details of the characteristics of Gen Z segments and the comparisons with other generations (as they are well described in the report of Streetbees). The following discussion aims to highlight selected issues and offer some observations about them.

It may seem surprising in our age of marketing, but product quality remains a primary decision factor in several segments of Gen Z, before drivers of brand image, emotions and social goals. Product (& service) quality is a leading consideration when choosing brands for the Quality & Sustainability Seekers and Honesty & Transparency Seekers. Nonetheless, quality plays an important role also in considerations of other Gen Z segments. In each segment there may also be additional aspects entangled with quality from different view angels.

The Honesty & Transparency Seekers link quality with reputation, integrity, transparency, and also a customer-centric approach (e.g., enhanced customer service). The Quality & Sustainability Seekers are focused more on the products, linking overall quality with reliability and durability. However, they also demand brands to focus on sustainability, including eco-friendly practices and consideration of the impact of their actions on the environment. Price Pragmatists also seek quality, but they focus more on its relation to price, that is, they look for greater value for the money (i.e., in attitude to price, they are not necessarily cost-driven). Among the Ethics Enthusiasts the perspective is different, approaching better product quality as part of a larger envelope of brand values, including integrity, transparency, sustainability, equality, ethics, and fair labour practices.

It is a little peculiar that terms of ‘fairness’ or ‘trustworthiness’ in brand-customer relationships do not appear in the context of brand values; it neither seems an issue in other segments. These concepts are apparently addressed or expressed by consumers in other terms. It should be noted that while concepts such as transparency & honesty or sustainability & eco-friendly practices are the focus of specific segments, they are not absent from key considerations of other segments. Moreover, the segment of Eco-Conscious Champions reportedly put sustainability, the environment and eco-friendly practices even higher in their priorities than other segments mentioned above, and also value ethics and honesty. Segments are distinguished by the ways consumers arrange and connect these concepts or values. However, it also makes the borderlines demarcating between segments somewhat more fluid.

The segment of Creative Pioneers is distinct in its focus on innovation and the future. For them quality is appreciated in association with creativity, design, durability, and customer-centricity. They prefer brands that create innovations with the aim of making life easier and more enjoyable.

The young Gen-Zers clearly look forward to career advancement, success and personal achievement. They just see differently how success and advancement should be accomplished. Those goals are not important to the same extent for all segments (e.g., more aspired among Price Pragmatists and Creative Pioneers). The Gen-Zers as employees do not think they need to be in the office more than three days a week and seek less the roles in middle management — progress should not necessarily be achieved by managing other people to reach top ranks in a company (implying, perhaps, that progress can better be manifested through advanced professional skills and achievements). Differences in conception of career trajectories between younger employees and older executives need to be resolved. Senior managers and executives also see the needs of their companies for professional and managerial skills and positions. The answer might be to respect the wish of Gen-Zers and allow them more time to achieve professional goals and to arrive thus more experienced to the managerial ranks. The problem is that these processes take time and require open-mindedness to bridge the gaps.

• The Gen-Zers are more likely to seek personal fulfillment (45%) than Millennials (35%), similar to Gen-Xers (41%), and less only than Boomers (55%), which seems quite remarkable for their relatively young age. And yet this does not reduce their interest in career advancement. Consider that personal fulfillment may be sought in one’s career, family, hobbies, learning and exploration, communal activity, etc.
• Gen Z and Millennials are similar in the importance they assign to success and achievement (on top 50%-51%) and innovation and creativity (33%-34%), higher than among Gen X and Boomers.
• Although integrity and honesty are second in priority in Gen Z (45%), the proportion acclaiming to these is lower than in the older age groups (56% to 64%). Still, integrity and honesty are valued and emphasised in specific segments of Gen Z (e.g., Honesty & Transparency Seekers, Ethics Enthusiasts).

The researchers of Streetbees address authenticity as a major theme in their comparisons with other generational (age) groups. Being ‘authentic’ describes someone or something that is of undisputed origin, not a copy, and genuine; it may also mean being reliable or trustworthy (dictionary definitions). It endorses one’s personal expression, which is believed to be especially important to Gen Z. Streetbees investigated what it means for a brand. All four age groups agree in consensus (53%-55%) that being authentic attests first of all to the credibility of a brand. Next come quality and originality / uniqueness, but it does not distinguish much the Gen-Zers. More interesting, the next three meanings proposed by Gen-Zers — transparency (44%), honesty (38%), and also brand identity (34%) — signify more lucidly the expectations of Gen-Zers from an authentic brand. On ‘brand identity’ they are similar to Millennials and Gen-Xers, whereas the Gen-Zers associate authenticity less with consistency and reputation.

• According to Streetbees, brands express their own individuality through originality, brand identity and innovation, but at the same time can acknowledge and prove their respect for the individuality of their customers through genuine customer focus. Although Gen-Zers seem to value customer focus more than others (Gen Z 23%, Millennials 22%, Gen X & Boomers 19%), the finding is not strongly persuasive that Gen Z distinctively expect this respect for individuality from brands. Expecting brands to be genuine, honest and true to their values seems to characterise Gen Z better.

The Gen-Zers base their judgement of authenticity of brands on a combination of first-hand experiences (mainly consistent brand messages & product quality, transparent communication) and on second-hand sources, including positive reviews and word-of-mouth recommendations. It suggests that inputs received from peers in communities they associate with matter to Gen Z at least as much as their own brand experiences. However, they are quite similar in that to the Millennials, where both generational groups attend to second-hand reviews and recommendations more than Gen X and Boomers. It is indicated that the Quality & Sustainability Seekers prefer to rely more on first-hand experiences whereas the segments of Creative Pioneers and Price Pragmatists are influenced more by second-hand sources.

The evolution of the Internet and especially the proliferation of social media networks have enhanced the tendency of consumers to associate with communities of peers or ‘friends’ who share their interests, needs, and values. The young consumers of Gen Z are found to have the strongest inclination to join such communities and participate in their conversations and activities, moreover in the virtual-online space (wherein Gen X and Boomers are relatively less present). Communities exemplify a mode for realising subcultures. Streetbees may hint at the latter when calling their segments ‘tribes’, but subcultures carry more unique meanings than the types of segments described in their research.

Gen-Zers believe less in a mainstream culture and are drawn more to identify and associate with specialised subcultures through communities. Consumers-members can apply their personal interests in those communities “united by shared passions and a craving for connection” (Quirk’s Media, [2]). Maxine Gurevich and Matt Higgins further suggest that communities give expression to personalised culture, and “subcultures are driving social conversations, trends and aesthetics like never before”. Such communities frequently also take form of fandoms in different areas, from music, cinema and gaming to cars, sports and travel, across the physical and virtual worlds. Gurevich and Higgins advise brands to pay more attention to those consumer niches of subcultures, specifically among Gen Z, and initiate marketing activities to reach out, appeal and connect with them [2].

Interestingly, the research of Streetbees suggests that Gen Z may be less “idealist” as might be believed, at least with respect to brands. The report shows that although Gen-Zers think that choosing brands that are authentic is important to them (very and quite) and make an effort to choose those that align with their values and goals (very and slightly agree), they are somewhat less keen than the generation cohorts preceding them. They are more likely to consider reviews and design than older generations, though these factors are overall ‘secondary’ on the list (the report draws attention to the differences in factors segments prioritize, regarding reviews, design, brand values and sustainability). Nonetheless, authenticity could be more relevant to Gen-Zers after they had purchased a product: consumers in Gen Z tend to consider abandoning a brand that they felt was not authentic or trustworthy moderately more than the older age groups (63% versus 53%-59%). Hence, authenticity and trustworthiness may be drivers of loyalty for them more strongly than during brand choice.

• The Gen-Zers and Millennials show greater preference to communicate with brands they enjoy by following them on social media than the older Gen X and Boomers. They are also more inclined to engage with brands through customer service and feedback than the older groups, probably also more frequently through online channels (websites and apps), though Millennials’ preference is even stronger. What those two generations particularly like less is participating in loyalty programmes, more so in Gen Z, which might be seen as a warning sign to companies that these activities may be waning in popularity into the future.

In the comparisons among generation cohorts reported, there are subjects on which the answers with highest frequencies of response by Gen Z are yet not the highest rates compared with other groups; in other cases, less frequent responses are those which more strongly distinguish Gen Z. Hence, the more popular responses are not necessarily the more salient.

Importantly, the attitudes, preferences and behavioural tendencies of people are likely to be influenced by their generational affiliation, during their forming years, as well as the stage in their life cycle. Consumers may keep some of their preferences from earlier years (e.g., music, food, fashion) that were most associated with their generation at the time (e.g., Gen X in the 1970s-1980s, Millennials in the 1990s-2000s), whereas on some issues consumers may update and modify their opinions and behaviours (e.g., the environment and sustainability, ethics and trustworthiness) as they mature and grow older. Technology and communication seem be the fields on which the Gen Z and Gen Y (Millennials) are the most likely to differ, even ‘clash’, with Gen X and the (Baby) Boomers.

The research study of Streetbees offers an instrumental and insightful perspective on Generation Z that can help in better understanding their preferences, goals and concerns. By respecting the differences in views while appreciating shared beliefs and priorities, it can improve communication to be more fruitful and constructive. The quotations of study participants make a very constructive contribution to the report. Although there are some puzzling points or ambiguities in the findings, they are overall interesting, and foremost encouraging thought and consideration. It may suggest, for instance, to look more for the beliefs, attitudes and preferences that consumers in parallel segments share across the generational (age) groups as opposed to overarching differences among the generations.

Ron Ventura, Ph.D., (Marketing)

Notes:

[1] “Breaking the Bias: The Truth About Today’s Gen Z Consumers“, Streetbees (Whitepaper), November 2024 (requires registration to access the WP report for reading)

[2] “Niche Marketing: How Focusing on Specific Interests Helps Brands Appeal to Gen Z“, Maxine Gurevich and Matt Higgins, Quirk’s Media (contributing authors), 6 February 2024 (registration may be required).