Generation Z and consumption: How communication environment shapes youth choices

Abstract

Using smart applications, members of Generation Z communicate in their networks on a wide range of issues, which forms their social sensitivity and makes impact on their consumption. The article focuses on Generation Z in Central and East Europe (CEE) where youth as a share of the total population is the smallest in the world. This study investigates Generation Z in Lithuania, one of the CEE countries, and presents the results of a large-scale survey of youth which analyses the expression of consumption and its interconnection with characteristics formed by social media. There are three main characteristics that explain consumption by Generation Z: cultural tolerance, social tolerance and tolerance to otherness on the network. This threefold theoretical model was proved using the Structural Equation Model (SQM). On the basis of this test we found out that social mindset is the strongest mediator between communication environment and consumption by Generation Z. At the same time, communication environment motivates for self-reward and hedonic consumption which does not compete and goes along with the social mindset. We conclude that Gen Z is a new group in consumer society that is distinctive by its unique characteristics.