A new report from tech-driven firm Sciative reveals that 66% of Gen Z shoppers (aged 18-25) prefer to shop online rather than in physical stores, signaling a major shift in retail dynamics. With convenience, variety, and instant price comparisons at their fingertips, this generation is transforming how businesses approach pricing, service, and customer engagement.
Customer Reviews Hold More Power Than Ever
Gen Z shoppers are highly influenced by peer opinions, with a striking 83% relying on customer reviews before making a purchase. This trend highlights the increasing importance of brand trust and credibility in the digital age. Traditional marketing efforts alone are no longer enough—real customer experiences, testimonials, and social proof now drive buying decisions more than flashy ads.
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Price is King, But Quality Wins in the Long Run
When making their first purchase, price is the biggest deciding factor, with 68% of Gen Z consumers ranking it as their top priority. However, once they find a product they like, quality becomes the key to loyalty. The report shows that 86% of Gen Z shoppers will continue to buy a product even if its price increases by 10%, as long as it meets their expectations. This insight reveals that while Gen Z is cost-conscious, they are also willing to invest in products that deliver real value.
Loyalty? Only If the Price is Right
Retailers can’t rely on blind loyalty from Gen Z consumers. The study finds that 85% of them will switch between online marketplaces to hunt for the best price. This behavior underscores the need for businesses to balance competitive pricing with other value-driven incentives like superior service and exclusive perks.
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Customer Service Can Justify Higher Prices
Despite their price sensitivity, Gen Z is willing to pay more for a better shopping experience. A whopping 91.7% of respondents said they would accept higher prices if a retailer provides superior customer service. Whether it’s fast delivery, hassle-free returns, or responsive customer support, brands that go the extra mile can secure long-term customer loyalty—even without offering the lowest prices.
The Future of Retail: More Than Just Transactions
“Gen Z is reshaping retail with their demand for transparency, fairness, and a seamless shopping experience,” said Vijeta Soni, Co-Founder & CEO of Sciative. “They aren’t just looking for the lowest prices—they expect brands to build genuine connections with them. For Gen Z, shopping isn’t just a transaction; it’s about trust, engagement, and a sense of community.”
As this generation continues to disrupt traditional retail models, businesses must evolve quickly. Offering fair pricing, high-quality service, and meaningful customer interactions will be the key to winning over Gen Z. Companies that fail to meet these expectations risk losing out to competitors who truly understand what makes this generation tick.
