Introduction
The youngest of all and most stubborn generation is considered to be Gen Z. There is no hesitation in saying that this generation even decides and influences the buying decisions of Generation Y. As it is a very common scenario around us where in most of the buying decisions of parents are consulted with their children. So, understanding customer insights based on their buying behavior and tapping into the raw emotions that drive Gen-Z to make a purchase has become essential to ensure the success of the communication campaign. Their social media connections and cognitive abilities have transformed them into market experts with a wealth of knowledge and consumer insight on numerous market-related aspects. Digital natives, or Generation Z, are those who have been using technology since before they could even speak. The majority of the information they absorb is through social media. This work intends to investigate Gen Z's online shopping trends in addition to conducting a literature review and secondary data analysis. It also attempts to identify some relevant relationships that will be helpful to marketers and other people researching Gen Z's behavior. Online shopping has revolutionized the way people buy products and services. Zoomers are born into the age of digital technology and are well-versed in online shopping and are a crucial demographic for businesses to understand. With the Mumbai region being a vital economic hub in India, it presents a unique opportunity to study the online buying behavior of Zoomers in this area. Online shopping has become increasingly popular in recent years, and businesses are always looking for ways to optimize their online shopping experiences to increase customer satisfaction and drive revenue growth. Mumbai is an economic and financial capital of India, with a population of over 20 million people. As more businesses shift their focus to online sales, it is essential to understand the behavior and preferences of Zoomers in this region.1, 2, 3
Online shopping has become an integral part of modern life, and the Zoomer generation, born into the digital age, has embraced it wholeheartedly. Zoomers are known for their comfort with technology, and they are more likely to shop online than any other generation. This has led to a surge in e-commerce activity, making it essential for businesses to understand the behavior and preferences of this demographic.
Review of Literature
You Lina, Deshuai Hou and Saqib Ali identified the aspects of online convenience that have an impact on generation z customers' cognitive and affective views as well as their online impulsive purchasing behavior. The moderating role of social media celebrities in helping marketers choose a product endorsement was also validated by empirical findings.
Chaudhuri and Amitava analyzed E-commerce based applications selected studies with respect to India and Bangladesh. This research looked at the history of the Internet and discussed how this computer network was created.
Sudhakar R highlighted the Influence of Consumer Trust in Online Buying Behaviour among Indian Consumers. Consumers' faith in a merchant depends on the sellers' integrity; if they behave consistently, customers will like them and be more likely to make an online purchase.
Jisha Vijay highlighted online impulse buying behavior and its investigation on the factors and consequences emphasize on the decision-making process and the new line influences of purchase intention have undergone new line significant changes in recent years, which have had a major impact on the research of consumer behavior.
Mehuroon K, identified customers' propensity for online purchasing and the obstacles they encounter there, this study can assist e-retailers in taking the required steps to enhance the overall online shopping experience for its current clients and to draw in new ones.
Satsangi. Prateek, highlighted the effect of Online Promotions on Consumer Buying Behaviour, considering the various categories of FMCG products. With regard to FMCG products, the preference for mobile or non-mobile internet promotion is not related to all of the consumer demographic traits.
Sreekanth, K & Shakeel, Shaik & Nedumaran, Dr & M.Manida, investigate practically all aspects that affect the online purchase habits of school pupils as they buy online frequently.
Kanade Vivek, this study compares consumer purchasing patterns when purchasing entertainment services from service retail stores and web stores as well as comprehends various variables affecting customer purchasing decision.
Objectives
To understand the factors that influence Gen Z consumers' purchasing decisions when shopping online via domestic and international websites.
To identify the types of products and services that are most popular among Gen Z consumers and how these preferences vary across different segments of the demographic.
To evaluate the role of social media and online reviews in shaping Gen Z consumers' perceptions of brands and products.
Materials and Methods
The descriptive study was conducted using primary and secondary data collection methods. Quantitative research technique and simple random sampling has been used for primary data collection. 4, 5, 6, 7, 8
Primary data has been collected through the use of structured questionnaires to conduct surveys. A sample size of 200 respondents was considered for the study. The study was limited to the Mumbai region and conducted within the duration of one month.
Secondary data has been collected from sources such as authentic websites, journal papers, research articles and news reports.
Discussion
The Primary data was analyzed using statistical tool like simple percentage method to derive appropriate results to support the findings and conclusions. The data is presented using tables, charts and graphs to illustrate pattern and trends.
Demographic information- Out of the total 200 respondents, 50.5% were female, 45% were male and the remaining 4.5% preferred not to reveal their identity. It also revealed that maximum respondents were from the age group between 19-22 which is 50.5.
The opinion of friends and family influence the online purchasing decisions.Figure 1
77 respondents are highly influenced whereas 18 of them do not get influenced by brand reputation while buying online. Thus, companies should give major consideration on keeping their brand image and reputation positive.
The website design and user experience of an online store influence your purchasing decisions.Figure 5
23.4% of them consider it to be highly significant. On the other hand, only 4.5% of them consider it to be not significant at all. Thus, online ecommerce should provide ease in return and exchange policy for their customers.
The availability of fast and free shipping while shopping online.Figure 3
The ability of ease in return or exchange products while shopping online.Figure 2
39% of respondents consider fast and free shipping while shopping online as extremely important, whereas the remaining 7% do not consider it to be not important. Thus, majority of respondents consider free shipping important.
The brand reputation of a company influences the online purchasing decisions.Figure 4
29% of respondents are influenced by website design and user experience while buying online. Also, nearly 9% of them are not influenced by website design. Thus, website design should be appealing enough as it's a major factor to be considered by users online.
Online shopping via mobile devices.Figure 6
32.5% only frequently do online shopping via their mobile device and the rest 17.5% of the respondents use it occasionally only.
The importance of personalization and customization while shopping online.Figure 7
Majority of the respondents find the use of personalization and customization when shopping online mostly very important while the rest of the 27% find it not so important.
Preference for subscription-based models while online shopping.Figure 8
10% of the respondents find subscription-based models for online shopping very important while the majority of the respondents were neutral towards the feeling of subscription-based models for online shopping.
The preferred mode of payment while purchasing online.Figure 9
45.5% preferred COD mode of payment while purchasing online, 34.5% prefer paying by UPI apps, while the rest 18.5% prefer paying by Debit/Credit cards when purchasing online.
Importance of the impact of tracking the delivery status of online orders based on the purchase behavior.Figure 10
Significant 68.5% of people agrees that their purchase decision is affected by the tracking facility provided by seller where in 41.5% believes that it is utmost important for them, and they might not purchase if this service is not offered but on the other side near to quarter i.e 23% people are indifferent towards it whereas others don't mind its absence.
The most preferred product to buy online.Figure 11
22% (maximum) responded prefer purchasing Beauty and cosmetics, 20% prefer Merchandise, 19.5% prefer Accessories, 15.5% prefer Electronics and last 7% prefer books online the most.
Shopping from international online stores.Figure 12
33% percent of respondents rarely shop, 24.5% never shop from international online stores on the contrary and 11% (least) shop from International online stores.
The most important factor influencing the purchase decision from an international website.Figure 13
27.2% of respondents agree that quality is the most preferred reason whereas 6.6% of respondents make their purchase decision because of the trend.
Seeking permission from parents/guardians before buying from online.Figure 14
28.5% of respondents always ask their parents before purchasing whereas other 28.5% never ask their parents before purchasing online.
Online shopping behavior after covid19 restrictions.Figure 15
50% of the respondents feels that their online shopping percentage and frequency has increased post covid and last 19.5% informs that it has decreased post testing times.
Data Interpretation
H0= Gen Z is unlikely to make a purchase through a mobile device compared to other age groups.
Ha= Gen Z is more likely to make a purchase through a mobile device compared to other age groups.
The data analysis clearly rejects the null hypothesis wheras to support the alternate hypothesis statement, the data reveals that the majority of the respondents always shop online via mobile devices which is more than 35%.
H0= Gen Z is unlikely to be influenced by social media and peer recommendations when making a purchase decision.
Ha= Gen Z is more likely to be influenced by social media and peer recommendations when making a purchase decision.
The data analysis clearly rejects the null hypothesis whereas to support the alternate hypothesis statement, the data reveals that respondents are influenced by the opinion of friends and family while making online purchasing decisions which is nearly 44.2%.
H0= Indian consumers prefer buying from international websites
Ha= Indian consumers do not prefer buying from international websites
It clearly rejects the null hypothesis where as to support the alternate hypothesis statement, the data reveals that 33% percent of respondents rarely shop and 24.5% never shop from international online websites.
Impact of COVID on online buying behavior
In the wake of store closures and limited capacity, Zoomers have increasingly turned to the internet to fulfill their purchasing needs. Zoomers are now more focused on obtaining optimal value for their money. Impulse purchases are on the decline as they gravitate towards cost- effective products that meet their specific needs.
Suggestions
Gen Z is known for their mobile-first approach, so it is important to ensure that your website and online store are mobile-friendly and easy to navigate on smaller screens.
Gen Z values convenience and expects fast and reliable shipping and delivery options. Also, provide easy return and exchange of products.
Brands should give major consideration on keeping their brand image and reputation by maintaining online reputation management incorporating customer reviews.
Technologies like augmented reality (AR) and virtual reality (VR) to enhance their experience of website.
Gen Z expects personalized experiences, so use data analytics and other tools to personalize their online shopping experience based on their browsing and purchasing history.
International brands should advertise more with respect to the taste and preferences of local community.
Conclusion
Since zoomers are the social generation known as “Digital natives”, the research sheds light to thinking and learning about their perception towards shopping online. Zoomers in Mumbai are highly engaged in e-commerce and prefer online shopping due to its convenience, accessibility and a wider range of products to choose from. The study's findings provide valuable insights for retailers and brands looking to improve the online shopping experience for Zoomers in Mumbai. It was found out that the opinion of friends and family which are strategic information sources, influence the online purchasing decisions. E-commerce provides ease in return and exchange policy for their customers, considering the availability of fast and free shipping. By tailoring their strategies to meet the preferences and priorities of this demographic, retailers and brands can enhance customer satisfaction, build brand loyalty, and increase sales by keeping their brand image and reputation positive. Website design should be appealing to enhance the user experience too. Apart from this, consumers prefer shopping more via mobile devices and consider cash on delivery as a preferred payment option. The customers gave quality as an important factor while buying from international websites. It was also found out that after Covid-19, online shopping has hiked in purchasing trends.
