Determining behavioural differences of Y and Z generational cohorts in online shopping

Abstract

Purpose

The present study aims at examining the behavioural differences of the Y and Z generational cohorts in online shopping for physical products.

Design/methodology/approach

Logistic regressions (LRs) were conducted to identify positively significant, negatively significant and insignificant variables/items of shopping motives to determine online shopping behavioural differences of both cohorts.

Findings

While shopping online, the Gen Y cohort focuses on rational decisions, and Gen Z derives enjoyment, learning, exploration and has a deal-hunting behaviour. Gen Y incorporates actual shopping experiences shared on social media, is relatively less individualistic and more social, unlike Gen Z youths who significantly value reviews and ratings. Both cohorts carry a high-product risk and sacrifice many hedonic motives. Y and Z cohorts perceive financial risk and a product's performance-related risks, respectively. The Z cohort has an intrinsic passion for digital technology whereas Gen Y uses it purposely. Thus, both have distinctive online shopping behaviours apart from some similarities.

Practical implications

Online retailers can use the findings of this study to develop more effective marketing strategies to serve both the cohorts better who have largely mutually exclusive online shopping behaviours.

Originality/value

The study measured actual behaviours on contemporary and comprehensive variables/items of utilitarian and hedonic motives, and associated perceived risks in online shopping exclusively. Therefore, the results offer significant, realistic and useful theoretical contributions in the present context to the existing literature on the subject matter along with valuable inputs to the practitioners.

Citation

Agrawal, D.K. (2022), "Determining behavioural differences of Y and Z generational cohorts in online shopping", International Journal of Retail & Distribution Management, Vol. 50 No. 7, pp. 880-895. https://doi.org/10.1108/IJRDM-12-2020-0527