Generations of consumers – how do their shopping behaviors differ?

Different generations of consumers make purchasing decisions in their own way – a fact that sooner or later, every business owner has to face, be it a local investment or a large e-commerce. Knowing potential customers’ needs, expectations, and concerns is the key to effective sales – how do the generations of consumers you target behave? What is the difference between Baby Boomers, Generation X, Millennials and Generation Z? Find out how to better understand the shopping behavior of generations of consumers and reach each of these groups.

Which generation buys the most?

Well, we don’t have one answer to this question because… It depends! First of all, it depends on the industry and medium (one target group will leave the most money in a luxury furniture store and another in a fashionable sports store), but that’s not all. We can also look at how individual generations are doing financially.

One thing is for sure: the 2024 Allianz Global Wealth Report showed that Baby Boomers are the richest generation ever! On the other hand, in the Accenture report, we can find the distribution of spending on different product categories between Gen Z and Gen Y, i.e. Millennials:

Source: https://branden.biz/wp-content/uploads/2019/04/Accenture-raport-2019.pdf 

The shopping behavior of generations of consumers: from Baby Boomers to Gen Z

Let us now move on to the characteristics of individual generations. Meet the generations of consumers you’ll meet in your store!

Baby Boomers (born 1946–1964)

Baby Boomers are a generation that grew up in an era of dynamic economic development and is statistically characterized by the greatest financial freedom today.

Decision-making power and preferences

• Baby Boomers like to carefully consider their purchasing decisions.
• They prefer durable and trustworthy products — they are willing to pay more for a higher quality product.
• They often choose brands they have known for years.

Needs and expectations

• High-quality products and good customer service are key factors.
• Personalizing offers is also important to them – maybe it’s a good time for automation?

How do they buy?

• Baby Boomers fear online scams and prefer to shop from trusted online stores.
• They choose those companies that offer clear return policies.
• They are more likely to use traditional forms of payment, such as credit and debit cards, but their trust in online payments is growing.
• If your online store has the option of traditional payments and deliveries – you gain additional points.
• Stationary boomers are reluctant to use self-checkouts.

Generation X (born 1965–1980)

Generation X is a pragmatist generation that is less prone to impulsive purchases than younger generations but more open to novelty than Baby Boomers.

Decision-making power and preferences

• They are willing to search for information and compare offers – they care about the optimal price to quality.
• They appreciate clear product descriptions and reviews from other consumers. Social proof and recommendations from friends are the basis for them!

Needs and expectations

• They value the convenience of shopping, both online and offline.
• They are loyal to brands that offer good after-sales support.

How do they buy?

• They use a variety of forms of payment, including credit cards, mobile wallets, and bank transfers.
• They are afraid of overly complicated purchasing processes.
• Price transparency and clear delivery information (what and when?) are important to them.

Millennials (born 1981–1996)

Millennials are a generation that grew up in the world of technology, and the internet is a natural environment for them (although, unlike Gen Z, they still know the world only offline!).

Decision-making power and preferences

• The millennial generation tends to make decisions quickly, often based on recommendations on social media.
• They appreciate the opinions of influencers and reviews of friends.

Expectations and needs

• They prefer modern forms of payment, such as mobile wallets (Apple Pay, Google Pay) and fast online transfers. See how to attract customers with payments!
• They value fast order processing, free delivery, and flexible return options. They also value sustainable development and an ethical approach to business.

How do they buy?

• Millennials pay attention to brand transparency and authenticity.
• They require full, simple, understandable communication.
• Brand values are important to them – can they identify with it? (Though still less than Gen Z.)

Generation Z (born after 1997)

Generation Z is the youngest generation of consumers to have grown up in a digital world. They have specific, often completely new needs, and a different approach to shopping from older generations.

Decisiveness

• Quick, impulsive decisions are the norm for them, especially if influencers, particularly YouTubers recommend the product.
• They often choose brands with which they identify – they are happy to buy a lifestyle that offers a given product.

Expectations and needs

• For Generation Z, personalized shopping experiences, online product availability, and immediate delivery are important. The sooner, the better!
• They also expect quality customer service on social media.

How do they buy?

• Generation Z is the generation that buys most often on social media!
• They do not like boredom and monotony in the offer. Brands need to constantly offer something new to grab their attention.
• Fast online and mobile payments are important to Gen Z. If you want to stand out, introduce one-click payments (only 26% of retailers have them!).
• They also increasingly use “buy now, pay later” solutions (Klarna, PayPo).

Each age group has different shopping needs and preferences – to reach them, learn how to adapt your strategy to a specific generation!