"Understanding the mindset of Gen Z is an indicator of future spending and consumer preferences, especially when comparing this generation's behaviors to those of Gen Y," said Deep Focus CMO Jamie Gutfreund. "If, as a brand, you aren't putting energy into understanding Gen Z you are losing an opportunity to anticipate the future of consumer behavior."
According to Cassandra Report: Gen Z, tweens/teens carry significant influence on household purchases than previous generations. Parents also corroborate this finding -- 93% say their children have at least some influence on their family's spending and household purchases.
Having such significant purchasing influence at a younger age has shifted Gen Z's attitude toward money, specifically as it becomes a measure of success. Sixty percent of Gen Zs say "a lot of money" is a sign of success compared to 44% of millennial respondents at that age. Today's 14-17 year olds also are more open to traditional ideas of ownership with 66% saying they want to own both houses and cars in their lifetimes. Savvy about money, while Gen Zs earn an average weekly allowance of more than $23, 39% of Cassandra respondents say they would rather "save money than spend."
This generation is also interested in building key skills at a young age. They have a desire to start their own companies instead of working for an established company (62%), and 89% say they spend part of their free time in activities they consider productive and creative instead of just "hanging out." As such, Gen Zs are more likely to have worked on a craft than Gen Ys at that age (42% vs. 25%). Gen Zs have shown interest in developing skills tied to how to start a business (58%), graphic design (51%), how to shoot/edit videos (50%) and how to build or create apps (50%).
Gutfreund added, "We've found 7- to-17-year-olds take a much more pragmatic approach to life. Astoundingly, 71% expect to experience significant failure before achieving success, and nearly 40% say they see failure as an opportunity to try again. Gen Ys, thanks to their Boomer parents, would never have considered failure an option."
Gen Zs' practical and realistic preferences extend into their expectations from brands. They are more interested in narratives and content that have realistic endings (67%) and want to be engaged by real people, especially in advertising where they are nearly twice as likely to want to see "real people" than celebrities (63% vs. 37%). Because of this desire, Gen Zs are more likely to visit YouTube than any other social site (85%) and would prefer their favorite brands communicate with them there than anywhere else (40%).
Additional insights uncovered in the Winter/Spring 2015 Cassandra Report: Gen Z can be found at www.cassandra.co.
Winter/Spring 2015 Cassandra Report: Gen Z Issue was generated through a quantitative online survey fielded among two respondent groups. Deep Focus interviewed a nationally representative sample of 902 Gen Z respondents, ages 7 to 17. In compliance with COPPA (Children's Online Privacy Protection Act), all 7- to 12-year-old respondents were recruited through one of their parents. Additionally, the agency surveyed 500 parents, defined as U.S. adults, ages 25 to 54, who are the parents/legal guardians of the 7- to 12-year-old respondents in its first sample group. In-depth qualitative interviews were also conducted, both online and in person, among respondents aged 7 to 17 across the U.S., sourced from Deep Focus' private online community, Cassandra Speaks. Community members are hand-selected for their creative, expressive, and forward-thinking mindsets. The survey was fielded from December 18 through December 29, 2014.
About Deep Focus
Deep Focus, a subsidiary of Engine USA, is a digital agency with offices in New York, Los Angeles, San Francisco and Shanghai. Founded in 2002, Deep Focus was acquired by Engine Group in 2010 and is home to the Cassandra Report, the leading ongoing syndicated study of youth culture for marketers. Deep Focus' client roster is composed of a variety of progressive brands, including Nestlé, Intel, Purina, Pernod-Ricard, Samsung, E. & J. Gallo Winery, Yahoo!, Cole Haan, YouTube, Victoria's Secret, Chase, and Nordstrom. To learn more, visit www.deepfocus.net.
Contact Sara Ajemian DiGennaro Communications [email protected] (646) 380-4761