As the newest generation with spending power, Gen Z are stepping into the market landscape with a radically different set of consumption values and behaviours, prompting many companies to rethink traditional marketing strategies.

Compared to other generations, Gen Z tend to be more heterogeneous by nature both demographically and in their thoughts and opinions.

Growing up in an ever-changing digital world, means the internet is a huge part of shaping Gen Z values and behaviours. Understanding the nuances of these values and behaviours and recognising the differences among various subgroups within Gen Z, allows brands to better connect with their target audience and gain a competitive edge.

Key insights  

  1. Gen Zs by nature are incredibly heterogeneous – understand and embrace their diversity to keep up with them.
  2. Gen Z also have unique values when it comes to brands, purchase habits, buying decisions, and personal beliefs.
  3. Despite the assumption that Gen Z are a screen generation, Goal Setters spend significantly less time using their screens compared to other Gen Z segments.

From our Top 100 Youth Brands study, we identified four primary personas among Gen Zs, segmented on the basis of their consumption-related values, spending behaviours and leisure activities. One of those personas we’ve coined as the ‘Goal Setters’.

Goal Setters

Compared to other segments, Gen Z’s who fall under the Goal Setters persona were more likely to be men or male-identifying (56%). Women or female-identifying made up less than half of the group (42%). As a whole, Goal Setters have  clear objectives in life, are organised, and are more likely to be introverts whom enjoy planning.

Youth Insight Gen-Z Segment Goal Setters

Youth Insight Gen Z Segments Carlos Alcaraz

 

Spending & Leisure Habits of Goal Setters

Compared to other segments identified in our study, Goal Setters exhibit lower expenditure on most items relative to Value Conscious Minimalists. Specifically, Goal Setters allocate less financial resources towards shoes and clothing, fashion accessories, cosmetics, makeup, perfume, cologne, and cinema tickets when compared to all other groups.

Spending their leisure time on consuming films and TV shows, or using social media are not a priority for this group as they prefer to spend their time offline. Despite the assumption that Gen Z are a screen generation, Goal Setters spend significantly less time using their screens compared to other Gen Z segments. However when they do reach for their screens, they are more likely to engage with video games, rather than keep up with the latest fashion trends.

However, similarly to Value Conscious Minimalists, Goal Setters are careful with their finances. Budgeting and looking for ways to save is a big priority for this group. As a whole, given that that the top concern for Gen Zs is inflation and the cost of living, it makes sense that young Australians are being more careful with their finances. And while luxury brands might be of interest to older generations, it’s not of interest to Goal Setters.

Top 10 Brands

Social Media and Perfectionism

Despite not showing much interest in social media and digital trends, Goal Setters still ranked Instagram seventh on the Top 100 Brands list. For Goal Setters, Google Maps and Ikea ranked sixth and tenth respectively. While this might seem unusual, this indicates how Goal Setters are more inclined towards offline experiences.

Gen Z, and Goal Setters, are no exception and are likely to suffer from a social media fatigue (SMF) paradox’. Which means despite holding a negative view on social media they still might rely on it. We found that Goal Setters used social media significantly less than other Gen Z segments do – they utilise it 7% points less than Value Conscious Minimalists – they are still likely to use certain social media apps a few times a week rather than everyday.

Goal Setters are more likely to have their lives well-planned and structured compared to other Gen Z segments. They prefer to lead healthy lifestyles and are probably creatures of habit, adhering to strict routines or daily rituals.

Goal Setters prefer a more structured approach to life and might not like surprises. This brings us to how the idea of perfectionism is an emerging concern among Gen Z in general. Social media usage contributes to the idea of perfectionism, which can lead to social media burnout in young people.

Some researchers are interested in how social media might influence perfectionist tendencies in young people. From research published by the American Psychological Association, we can deduct that this rise in perfectionism has stemmed one generation back to millennials.

The rise in perfectionism among millennials is being driven by a number of factors, according to Curran. It is suggested that social media use pressures young adults to perfect themselves in comparison to others, which makes them dissatisfied with their bodies and increases social isolation.

“This has not been tested and further research is needed to confirm this”, said Curran. “The drive to earn money, pressure to get a good education and setting lofty career goals are other areas in which today’s young people exhibit perfectionism.”

While this is relevant to millennials, it makes sense that Gen Z might also be experiencing social media burnout. In another study by Harren, Walburg and Chabrol, they found that the problematic social media usage can increase our intolerance to imperfection.

How Can Brands Appeal to Goal Setters

Unlike Value Conscious Minimalists, Goal Setters make intentional purchases based on their values. Meaning they would stop buying from a brand if it meant they didn’t agree with their morals or values.

Given their preference for spending less on things, they are more likely to be specific on what they spend their money on. They are more likely to reach for ethical products from brands who produce high-quality goods and offer the best value for money.

If you’d like to know more about how we can help you with your research needs, feel free to get in touch with us here!