Thursday, 10 August 2023

Purpose or Price: Amex Compares Two Shopper Generations

Written by Sam Hopkins
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Christian Wiediger - Unsplash

When choosing a brand among many others, personal taste, disposable income, and necessities will all play an important role, but the older and younger generations are driven also by two different factors, a study by Amex says.

As shoppers, both Gen Z and their parents look for reputation and quality but their main priorities reflect the world they live in as American Express reveals.

The study run by American Express sampled 2,000 UK shoppers to explore the current drivers of brand loyalty and how retailers can attract and keep customers in the current landscape. The analysis revealed ‘loyalty divide’ with contrasting motivators for different age groups.

American Express Explores Today's Shoppers and Drives

The findings reveal significant differences between what younger and older generations want from retailers, with older shoppers prioritising price, while Gen Z and Millennials see sustainability factors as more important. Gen Z and Millennial shoppers are continuing to prioritise retailers’ reputation and brand credentials when choosing where to spend, despite the challenging economic and high inflation environment. However, their parents’ generation is far more price-motivated when it comes to loyalty, according to new research from American Express.

One third (33%) of 18-34-year-olds (which include the Gen Z and Millennial age cohort) said they are more loyal to brands with a positive corporate reputation and values which align with their own, compared to just one in seven shoppers aged over 55.

As further evidence of their commitment to purposeful shopping, Gen Z and Millennial shoppers were also the most likely group to donate their points or cashback earned from loyalty programmes to charitable causes.