Modern youth are no longer making purchases based solely on trends or advertising campaigns. Today, product quality, price, brand trust, and independent information gathering have become an integral part of the decision-making process. These changes are clearly evident in the consumer behavior of Generation Z. According to a new study by Rukam Capital, although Gen Z members use technology and artificial intelligence in the purchasing process, they strive to maintain control over the final choice.
Importance of Quality and Price
The study, titled 'Gen Z: A Deep Dive Into India's Most Influential Consumer Cohort,' revealed that 82% of Gen Z consumers expect honesty and transparency from brands. Furthermore, for 51% of buyers, quality is the main factor in choosing, while for 49%, price is decisive.
Even during holidays, Gen Z spending increases: 60% of respondents reported higher spending during the holiday season. In the realm of gifts, family holds the leading position, as 74% prefer gifts from parents and family. Meanwhile, online searching is a source of inspiration for 41% when buying for holidays. One in four respondents uses AI to find gift ideas, and 30% are interested in self-gifting, while 50% are interested in healthy snacks.
Using AI in Purchases, but Maintaining Control
Artificial intelligence is integrating into the Gen Z purchasing journey. Approximately 6 out of 10 Gen Z consumers use AI to research products. The main use of this tool is directed towards comparing goods, understanding different options, and determining prices. Although 70% of people feel comfortable with AI recommendations, only 49% are willing to let AI make decisions without their approval.
The application of AI is not limited to shopping. 66% of Gen Z members use or consider using AI for healthcare decisions, and 63% view AI similarly in career counseling matters.
Trust in Own Research is Higher Than in Influencers
The study also presented an interesting picture regarding trust. Independent research became the most significant source of trust for 27% of respondents. This is followed by friends (20%) and reviews (15%). Social media and content creators are a discovery source for 29% of people, but only 6% make a purchase immediately after a creator's recommendation.
Generation Z is also cautious about artificial attempts by brands. About 30% found brand behavior related to excessive influencer use, forced slang, or chasing trends to be negative for the company's image. Moreover, only 6% dislike personalized marketing, while content that resonates and engages them is preferred.
Need for Verification Before Purchase
The role of research in Gen Z's purchasing behavior has also increased. 46% of people stated that they conduct more research before buying, whereas only 4% make a purchase immediately after discovering a product. Due to concerns about fake or deepfake content, 32% check sellers, while 29% prefer already established reliable brands. About 28% use express delivery services, preferring to receive necessary items quickly. At the same time, 20% note that they are now making purchases more spontaneously or without deep consideration.
This study was conducted by Ugov in collaboration with Rukam Capital among 4002 respondents aged 18–29 from 18 states in India.