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Marketing Exec here. I specialise in generation segmentation. I wrote this recently for my employer:
Gen-Z
Are recession learned, young, with low disposable income and low income. They are in education, are career starters and living at home.
They are lonely, single, and spend 10 hours p/day online (hyper online consumption / always logged in) with the least attention to ads. They are engaged in people-discussing-products-and-services, prefer information over ads, and use ad blockers.
Otherwise known as ‘digital natives’, Gen-Z are highly socially consciousness (body image, cyberbullying, mental health) and highly environmentally conscious. They have a strong focus on saving and responsible spending and are quite frugal. They are study and career minded and prefer money over perks and benefits in employment. They dislike having their time wasted. They have a low attention span.
Millennials
Have long-term debt (mortgage/car/student loan) and have young children. They are not at full purchasing power, are the most adaptable generation ever to pre-and post-technology, are delayed in marriage, delayed in independence, and came of age through globalisation and economic rollercoasters.
They prefer texting/messaging, are high use smartphone users, and sleep with their phone. They are the most active and health conscious generation, environmentally conscious, and the highest consumers of web content. Learning is more compelling than buying to Millennials as they spend an average of 4 hours p/day online or with phone/apps. They prefer advisors, advice, and opinions over a corporate story. They prefer sharing economy (access not ownership). Prefer e-commerce as entertainment.
Millennials are impatient, have reduced brand loyalty, and are extremely tech savvy. They are researchers of ideas, thoughtful and seeking expertise, and love to collaborate and help companies or causes achieve. Online they use acronyms, slang, and respond to authentic but complex language. They prefer honesty and being empowered. They are price aware.
As an older Zoomer myself, your description of Gen Z fits me to a T
[Gen Z] have a strong focus on saving and responsible spending and are quite frugal.
I feel like the general stereotype is the opposite, that they're big spenders without much regard for saving (or at least they're spending what they can given their broke-youngster financial situation). I'm curious why you say the opposite is true?
I'm curious why you say the opposite is true?
Because it is true within the generational cohort. No disrespect, but I’m not looking at you and your mates. I’m looking at mass populations.
I think you misunderstood me. Let me try again.
I don't personally know many people who are Gen Z (I'm a Millennial, and most people I know are Millennials, Xers, or Boomers). So most of what I "know" of Zoomers comes from things I've read, either social media conversations like this one or news articles/thought pieces. The impression I've gleaned from those is that Zoomers are not frugal: they're Apple customers, chronic online shoppers (often for products like fast fashion that are individually cheap but quickly add up), and are spending big on experiences like travel and concerts. For example, another comment in the thread asserts that "[Zoomers] needlessly spend more money than their older generation counterparts [on technology because they replace rather than repair]."
Now I take these types of demographic assumptions with a grain of salt, especially having witnessed all the nonsense articles and conclusions made about my generation. However there is some logic behind the explanations I've heard for why Zoomers are spenders rather than savers. Such as, perhaps Zoomers are more focused on living (and spending) in the moment given their experience being deprived during their formative years that happened to fall during covid lockdowns. Perhaps Zoomers spend more frivolously because why bother save for a bleak future ("go ahead and splurge a little: it's not like you'll ever afford a house either way!" or "In the 21st century you can do everything 'right' and still easily end up failing, so why bother following the 'right' path?") Perhaps it's because we've created a world (at least in the US) where people are lonelier than ever and everything costs money: you can't even hang out at the mall for free anymore because the mall was torn down last year, so you either spend money at another "3rd space" like a coffee shop, or you try to fill an emotional hole by purchasing things to make being stuck at home all the time more bearable (especially if you're still living with your parents because you can't afford to move out). Perhaps it's because there's more addictive stuff to spend money on that's targeted at youth, like online streamers and pay-to-play games. Again I don't know if any of this is true, but IMO it at least passes the sniff test.
However your comment asserts the opposite of what I've heard, so I was curious where you got your info from, especially since it's presumably based in some kind of research if it was part of a work report. Did you survey Zoomers asking about their spending habits? Did you analyze credit card data? Etc.
This is a tear-off summary of a much bigger report created from multiple peer reviewed sources over months. I think from memory, the Gen-Z content had the fewest peer reviewed sources attached to it as a) there hasn’t been as much study done on Gen-Z because if they’re age (half aren’t even adults yet), and b) most of the studies done are based on change culture and online habits.
Gen-Z as wasteful spenders is an age biased assumption. Research suggests that their learned experiences through GFC, COVID, geo-political inability, environment, and a post-COVID economy has hardened their resolve, much like WW1, the Great Depression, and WW2 did for their grandparents.
I mean shit could change. They’re only 26 at the oldest so their data is evolving.
That makes sense, thank you
It's tough to generalize, but I think you did a good job here.
Now do the other generations!
I’ve done them all. It’s my job. Here are the big ones but I could go all day on demographic, psychographic, and technographic segments.
Gen-X
Are nostalgic, middle-aged, family oriented, individual, busy/stressed, and time poor. They are consumers of media and marketing in the evenings and enjoy peace of mind. They apply high value to security and protection, are customer-service centred and insist on value. They are brand loyal.
Entering peak career/positions of power, Gen-X are financially stable. They are newly empty nesters with adult children. They are homeowners with high purchase power.
Gen-X thoroughly research products, rely on businesses as providers of information, and are the highest online information seekers with moderate use of smartphones (3 hours p/day). They prefer text and email and are high social media consumers.
Boomers
Are informed shoppers and prefer reliability of products. Boomers are independent, goal/solution oriented, are value and ROl orientated, careful buyers, and confident. They are less tech savvy (slow adopters of change), and don't like or understand online trends and language. They prefer helpful and valuable content, no slang, and have a high focus on luxury. They have an attitude of 'the customer is always right’, and have a high use in their children as tech advisors. They are very brand loyal.
Boomers have a high disposable income, work hard and have an excellent work ethic. Now retired or entering retirement, they have grandchildren, are homeowners/investors with very high purchase power. Boomers are the wealthiest generation, set to bequeath $224B in the next two decades.
With a strong focus on health, Boomers spend to be comfortable, are big spenders, and prefer traditional relationships with business and necessary contact. They are high Facebook users, prefer clear and concise language, and spend 5 hours p/day on smartphones. Boomers are print and broadcast media consumers. They are traditional.
Silent Gen
Silent Gen are extremely loyal and expect loyalty in return. They are disciplined, family/community centred, prefer conformity, give and expect respect, are traditional, resilient, determined, very health conscious, and time rich.
Now Grandparents / Great Grandparents, they are retired, downsizing, and social. Silent Gen have an easy-life preference, seek value, are very frugal, and are budgeters. They are almost exclusively analogue and highly self-sacrificial.