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a guide to best practices
Executive Summary..............................................................................................................................................................................3
What’s Already Known...................................................................................................................................................................4
Getting to know Generation Z..........................................................................................................................................................................................4
Generation Z as Consumers................................................................................................................................................................................................5
Brand Engagement........................................................................................................................................................................................................................6
Brand Loyalty.........................................................................................................................................................................................................................................7
Traditional Best Practices for building Brand Engagement and Loyalty...........................................................................8
Building Brand Engagement and Loyalty Among Generation Z..............................................................................................10
What We’re Looking At..................................................................................................................................................................11
What We Found.....................................................................................................................................................................................14
What It Means..........................................................................................................................................................................................20
Limitations.......................................................................................................................................................................................................21
References....................................................................................................................................................................................................22
TABLE OF CONTENTS
2
Executive summary
As Generation Z, those born between 1995 and 2005 start to make up a greater percentage of
consumers, marketers and advertisers much acknowledge their power in the marketplace and work to
understand the best ways to build loyalty and engagement with them. Generation Z is different from
generations before them, particularly different than Millennials, and by 2020 will make up 40 percent of
consumers. Results show that they value the ‘coolness’ of brands, and those they feel are cool are more
likely to be those they feel loyalty towards. However, their definition of cool is more about being true and
genuine than anything else. This generation is tech savvy, they’re very active on social media, and they
value hard work; not everyone should get a participation trophy according to Gen Z. Understanding this
new, powerful generation as people and consumers will help brands to build loyalty and engagement
with them, which will help the brands thrive and continue to see success.
3
What’s already known
GENERATION Z
Defining the dates Generation Z or Gen Z is
something that has created disagreement among scholars and
researchers, but for the purpose of this paper, Gen Z will refer to
those born from 1995 through 2010. Gen Z-ers represent a
unique cohort as their world has been “completely shaped by
the Internet” (Seemiller & Grace, 2016, p. 27). Examining this
generation and its characteristics is important for marketers and
advertisers as Gen Z-ers “will constitute 40% of all U.S. consumers
by 2020” (Priporas, Sylos, & Fotiadis, 2017, p. 375).
According to Seemiller and Grace (2016) the
“highly technological era in which they (Gen Z-ers) were born has
helped to make them smart, efficient and in tune with the world,
both offline and online” (p. 27). Gen Z is the first generation to
exist in a digital world since birth. Gen Z-ers are described as
“highly educated, technology savvy, innovative and creative”
(Priporas, Sylos & Fotiadis, 2017, p. 376). In addition to their
natural disposition to all things technology, according to
Seemiller and Grace (2016) Gen Z-ers “describe themselves as
loyal, thoughtful, compassionate, open-minded and responsible”
(p. 27). In contrast to Millennials before them, “they learn that not
everyone gets a trophy and that hard work is part of life”
(Seemiller & Grace, 2016, p. 29).
In addition to having grown up as digital natives,
they also “never knew a world before terrorism or global warming”
(Google, p. 21). Seemiller and Grace in Generation Z Goes to
College say, “As these students entered kindergarten, they saw
the newscasts of September 11, 2001. They witnessed the
economy crash and saw the unemployment rate skyrocket. They
have known only two US presidents and lived in a world at war
for a majority of their lives” (Seemiller & Grace, 2016, p. 27). This
detail of the era in which Gen Z-ers is equally as important in
shaping them as people and consumers as the fact that they
have grown up as digital natives.
Generation Z’s communication habits differ from
generations before as well. According to Seemiller and Grace
(2016), “with constant connectivity and real-time access to
information, Generation Z has the ability to
engage in quick, frequent and succinct
communication” (p. 56). Because
of this though, Gen Z-ers are said
to maybe have short attention
40%
of consumers
by 2020
4
spans (Seemiller & Grace, 2016, p. 56). Despite their ability to
communicate through technology with ease and convenience,
Gen Z-ers “still prefer face-to-face communication. They, like other
generations before them, crave authentic connection with
others” (Seemiller & Grace, 2016, p. 58).
When Gen Z-ers are engaging in this technology
based communication, they are most often utilizing social media.
According to Hulyk (2015) “Gen Z is online. They’re on social
media and they’re consuming a lot of content” (p. 33).
According to It’s Lit, a report produced by the Brand Team for
Consumer Apps at Google, based on three research studies
conducted in the United States that were commissioned for the
magazine, 56.4 percent of Gen Z is on Snapchat, 35.4 percent
is on Twitter, 52.8 percent is on Facebook, 59.6 percent is on
Instagram, 42.2 percent is on Google+ and 26.6 percent is on
Pinterest.
Understanding Gen Z-ers not only as consumers,
but understanding characteristics of their cohort is important
when attempting to build brand engagement and loyalty among
them.
GENERATION Z as consumers
As consumers, “Wood (2013) asserts that four
trends are likely to characterize Generation Z: (1) An interest in
new technologies, (2) An insistence on ease of use, (3) A desire
to feel safe, and (4) A desire to temporarily escape the realities
they face” (Priporas, Sylos & Fotiadis, 2017, p. 376). Additionally,
The Center for Generational Kinetics’ second annual State of
Gen Z research uncovered interesting “behaviors and beliefs of
this emerging generation toward money, spending, and consumer
habits” (2017). The study found that Gen Z is smarter with money
and that “48% say they will often or always get input from friends
or family before making a purchase” (The Center for
Generational Kinetics’, 2017). Additionally, the study found that
“30% of Gen Z prefer to get information on a brand form a real
customer of that brand…19% prefer to get information from an
online influencer…(and) 30% believe YouTube ads are the most
trustworthy type of ad—more than television, print, radio or social
media” (The Center for Generational Kinetics’, 2017).
Another interesting trait researchers have found
regarding how Gen Z-ers interact with brands is the importance
What’s already known
5
of how “cool” a brand is. What is considered cool matters a
great deal to Gen Z-ers. According to It’s Lit, “cool is an
indication of what people pay attention to, what gets them
excited, and can often act as a manifestation of their hopes
and dreams…For Generation Z, what’s cool is also a
representation of their values, their expectations of themselves,
their peers, and the brands they hold in the highest regard”
(Google, p. 1). However, the way Gen Z-ers define cool is
different from what may be expected. For instance, “teens think
music that makes them “feel” something is cool…celebrities that
are philanthropic and genuine are the coolest” and when it
comes to beauty “it’s cool to be you. Being beautiful is being
yourself” (Google, p. 6). One Gen Z-er quoted in Google’s It’s Lit
said: “When I think “cool” I imagine companies that do great
things for customers/employees or beautiful/unusual products”
(Google, p. 10). The study found that “Gen Z believe and rely
on brands to shape their world” (p. 10), and that the Top 10
Coolest Brands are: 1) YouTube, 2) Netflix, 3) Google, 4) Xbox,
5) Oreo, 6) GoPro, 7) PlayStation, 8) Doritos, 9) Nike, 10)
Chrome.
The importance to Gen Z-ers of “feeling something”
or celebrities or brands being philanthropic and genuine goes
back to the fact that they have grown up in a world shaped by
terrorism and warr, as well as economic hardships.
Brand Engagement
Brand engagement, according to Keller (2013) is
defined as “the extent to which consumers are willing to invest
their own personal resources – time, energy, money – on the
brand, beyond those resources expended during purchase or
consumption of the brand” (p. 320) and that these “activities
consumers engage in show their loyalty towards a brand”
(Franzak, Makarem, Jae, 2014, p. 19).
Recently, research has revolved around brand
engagement that occurs online. According to Solem (2016) “in
recent marketing and service research, customer brand
engagement was found to be a core explanatory element in
online brand communities, the emergence of social media
networking sites, and particularly, social media (e.g. Facebook)-
based brand communities” (p.333). This idea of brand
engagement occurring online is changing things for marketers.
What’s already known
6
According to Gommans, Krishnan & Scheffold
(2001), “the Internet offers unique tools of interactive brand
building that have previously not been available through
traditional mass media oriented brand-building strategies” (p.
49). One of the new ways in which brands are building
engagement is through the use of influencers. According to Hulyk
(2015), “several brands have already tapped into the
tremendous potential of influencer marketing, partnering with
influencers who maintain presences on social networks built for
short-format visual and interactive content” (p. 33). While some
scholars note the importance of social media in the ability to
better measure brand engagement, some are critical that there
is not a precise definition of what is considered engagement.
According to Chahal (2016), “brand engagement can be as
simple as a mention on social media or an email being opened,
while others class the act of buy a product or service as the only
sign of engagement.” While Chahal makes a valid point, and a
clearer definition of brand engagement made be needed,
measuring things such as mentions on social media is still
important, especially when it comes to Gen Z.
Brand Loyalty
Brand loyalty is most often defined by repeat
buying behavior, and is an important factor when considering
brand profitability and consumer brand equity. In 1997, Oliver
defined brand loyalty as “a deeply held commitment to re-buy
or re-patronize a preferred product or service consistently in the
future, despite situational influences and marking efforts having
the potential to cause switching behavior” (p. 406). Brand
loyalty is thought of in terms of attitudinal brand loyalty and
behavioral brand loyalty. Most simply put, one who is attitudinally
loyal to a brand will feel positively about that brand and
possibly tell others how great the brand is, while someone who is
behaviorally loyal will regularly either purchase a product or
shop at a particular store.
According to Gommans, Krishnan and Scheffold
(2001), “conventional brand loyalty development efforts have
relied substantially on brand image building through mass media
communication” (p. 45). According Roesler (2017), “in the past,
the most important facts to brand loyalty revolved around things
like price of the item, how far away the store was compared to
the competitor, product selection, etc.” However, this is no longer
the case. Technology and the online marketplace have made it
What’s already known
7
so that those “factors are no longer enough to demand brand
loyalty” (Roesler, 2017). In Roesler’s article How to build brand
loyalty in customers in 2017 he discusses the results of a study
conducted by Accenture Strategy, which found many interesting
statistics regarding the current state of brand loyalty, including:
• 66% of U.S. consumers are spending more with the brands
they love
• 49% of U.S. consumers feel loyal to brands that present them
with small tokens of affection, such as personalized discounts,
gift cards and special offers to reward their loyalty
• 41% said they are ‘loyal to brands that offer them the
opportunity to personalize products to create something that
is bespoke to them’
• 51% are ‘loyal to brands that interact with them through their
preferred channels of communication’
• 81% feel loyal to brands that are there when they need them,
but otherwise respect their time and leave them alone
• 85% are loyal to brands that safeguard and protect the
privacy of their personal information’ (Roesler, 2017). z
Veloutsou (2015) hypothesized that positive
brand evaluation, satisfaction, brand trust, and the strength of
consumer-brand relationship all have a positive effect on brand
loyalty, and found that “loyalty did have very strong correlations
with all constructs” (p. 409).
Traditional Best Practices
for building Brand
Engagement and Loyalty
The idea of building brand engagement and
loyalty is by no means a new one. Today, many best
practices for doing so involve things like customer loyalty
programs, competitive positioning, and social media
interaction.
In 2017, the companies with the highest customer
loyalty, according to Brand Keys included 1) Amazon
(online retail), 2) Google (search engines), 3) Apple
(tablets), 4) Netflix (video streaming) 5) Apple
(smartphones), 6) Amazon (video streaming), 7) Samsung
(smartphones), 8) Facebook (social networking, 9)
Amazon (tablets) and 10) YouTube (social networking).
Looking at this list tells us more than just who is doing
something right, but gives us the opportunity to look more
broadly at why certain companies are leaders in loyalty
What’s already known
8
regardless of the product category you’re looking at them
through. Brand Keys (2017) says that “these five brands (the only
brands in the top 5) were among the ones most likely to meet
consumer expectations for their respective categories”
An article by Wheelhouse Advisors named
American Express, Toyota, Apple and Starbucks as four brands
with phenomenal customer loyalty and engagement. Why? A few
reasons.
American Express, in 2007, launched a forum
called OPEN, aimed at helping small business grow, and
Wheelhouse Advisors called it “perhaps one of the best
examples of a customer loyalty driver” saying it was “a way to
demonstrate that – as a brand – American Express is committed
to helping you grow your business. This is a powerful statement
and a key facilitator of enhanced loyalty” (Wheelhouse Advisors,
2015). Toyota’s success in creating customer engagement and
loyalty is due not only to its product quality and reliability, but its
“secret weapon…the ‘Just in Time’ production approach”
according to Wheelhouse Advisors. “The whole Toyota
Production System is designed to provide the customer with high
quality vehicles (at great value) with shortest lead times. It’s all
about quality, and consistency” (2015). Apple’s success is due
to something a little different than American Express’s and
Toyota’s. According to Wheelhouse Advisors, its “clearly defined
vision and mission statement (and) commitment to innovation,
product quality and cutting edge design” are critical in the
brand’s success. But it’s also about the brand manifesto that
Steve Jobs created – “an emotional connection” that “is often
enough to preserve customer loyalty even when things go
wrong” (2015). It’s about more than products, as Seth Godin is
quoted in the article stating, “Marketing is no longer about the
stuff that you make, but the stories that you tell” (Wheelhouse
Advisors, 2015). Finally, Starbucks, who like Toyota has created a
certain level of consistency with its brand, as well as the customer
experience at Starbucks. Priya Raghubir is quoted from an
interview with the Huffington Post as saying, “The enduring brand
loyalty is about the core offerings, which is not just coffee. It is the
experience of going to Starbucks” (Wheelhouse Advisors, 2015).
These practices all have something in common in
that they make consumers focus on more than just the product
itself. As Wheelhouse Advisors says “the best way to build loyalty
what’s already known
9
and engagement among your customer base – as evident by
some of the world’s biggest companies – is to consistently deliver
a positive experience that delivers on a rational and emotional
level” (2015).
Building Brand Engagement
and Loyalty Among
Generation Z
Literature regarding the types of marketing that are
most effective in making consumers out of Gen Z-ers is lacking,
primarily because, until recent years, Gen Z-ers were under the
age of 18. However, the recent studies that have been
conducted have found that building brand loyalty among this
generation will likely require marketers to use different tactics than
they have in the past. According to Duffett (2017), “teenagers
(Gen Z-ers) have become largely resistant to traditional
marketing; hence, advertising revenues for many above-the-line
media have slowed in growth or even declined in recent years,
whereas several forms of digital interactive media (in particular
mobile and social media) have proved to be resilient” (p. 31).
This conclusion aligns with the findings of The Center for
Generational Kinetics’ study. As previously stated, YouTube ads,
according to the Center’s study are seen as the most trustworthy
among Gen Z-ers.
Research regarding how to build brand
engagement and brand loyalty among Gen Z-ers is lacking. Like
mentioned, this has to do with the fact that it is just recently that
this group has reached the age of 18. Because Gen Z will be
so powerful in the marketplace in the near future, marketers would
be wise to investigate how to build brand engagement and
loyalty among this group, as these two things are critical to
brand equity and profitability.
What’s already known
10
RESEARCH QUESTIONs
RQ1: Based on how Generation Z-ers engage
with brands and feel loyalty towards them, what best practices
can be identified for marketers?
It is expected, based on literature reviewed thus
far, that Gen Z-ers will base their engagement and loyalty
towards a brand on three main things:
• ”Coolness’ of the brand
• The genuineness of the brand
• The brand’s social media activity/interaction
RQ2: What brands do Gen Z-ers feel the highest
level of loyalty & engagement to, what brands are considered
cool, and what can marketers learn from these brands?
It is expected that similar brands will be ranked
similar in each category, loyalty, engagement, and coolness.
Brands that will be up for ranking include:
• Apple
• Amazon
• Doritos
• Domino’s
• Netflix
• Google
• Samsung
• Oreo
• Nike
• Instagram
• Starbucks
• Chick-Fil-A
• YouTube
METHOD
A primarily quantitative survey was developed to
answer the research questions for this report. The survey was
created and distributed via Qualtrics, a research and
experience software. The survey questions can be found in
Appendix A. The survey consisted of 22 Likert Scale questions, as
well as seven questions, some of which were multiple choice, and
others that asked participants to rank provided information.
Three demographic questions were also included at the end of
the survey. The survey was based on findings previously
WHAT we’re looking at
11
what we’re looking at
previously published and discussed in the Literature Review
section of this paper, and further information can be found in
Appendix B.
This survey was open to any participants between
the ages of 15 and 22 (born 1996-2003). The survey link was
distributed via social media, including Facebook, Instagram, and
Snapchat. The survey link was also distributed to Texas Tech
University students in Business and Professional Communication,
and extra credit in that course was offered to those who proved
completion of the survey.
The survey link was active for a total of 24 days,
opening on March 22, 2018, closing on April 15.
Demographics of Respondents
Female: 48.18%
Male: 50.99%
Ethnicities of Participants
White/non-Hispanic Hispanic or Latino
Black or African-American Natic American or American Indian
Asian or Pacific Islander Other
12
what we’re looking at
1
65
116
55
35
30
17 YR OLD 18 YR OLD 19 YR OLD 20 YR OLD 21 YR OLD 22 YR OLD
AGES OF PARTICIPANTS
17 Yr Old 18 Yr Old 19 Yr Old 20 Yr Old 21 Yr Old 22 Yr Old
13
What we found
Results
Overall, this study’s goal was to conclude best
practices for building brand loyalty and engagement with Gen Z-ers,
by examining members of this cohort as consumers, and looking at
how they currently feel about brands that have previously been
determined as top brands among Gen Z. This study yielded many
interesting findings that can help practitioners have a better idea of
what will work when marketing towards Ge Z-ers, who will soon make up
40% of consumers.
Previous research has shown that Gen Z-ers are very different from
generations before them, that they don’t believe everyone should
get a trophy, that they’re open-minded (Seemiller & Grace, 2016).
Research has shown that they care about input from others before
making purchases, that they prefer to communicate face-to-face
(Center for Generational Kinetics 2017),
• Majority (60.93%) do not agree that everyone should get a
trophy
• Less than 1.5% indicate disagreement with the statement that they
would consider themselves open-minded
• 82.78% agree to some extent that they care about input from
others when making purchases
• Prefer face-to-face communication: over 69.86% agree or strongly
agree
Gen Z-er’s advertisement preferences are also
interesting to note before diving into our discussion of our research
questions. When asked to rank forms of advertisements from most to
least appealing, findings indicated that in-app ads are the least
appealing (according to 51.59% of participants). The list went:
1. Social media ads
2. TV ads
3. YouTube ads
4. Print ads
5. In-app ads
14
First, we will examine how the results aligned with
RQ1: Based on how Generation Z-ers engage with brands and
feel loyalty towards them, what best practices can be identified
for marketers? We expected that Gen Z-ers would first base
engagement and loyalty towards a brand on coolness. First, it’s
important to understand how this cohort defines ‘cool.’
Based on this information, we see that Gen Z-ers
feel that cool is about being genuine or true to yourself more
than anything else, which leads us to believe that genuineness of
a brand will equate coolness, and therefore loyalty and
engagement. When asked about agreement level with the
statement “I feel loyal to brands that are cool”:
• 28.37% of participants said they ‘agree’
• 28.37% of participants said they ‘somewhat agree’
When asked about agreement level with the statement “I feel
loyal to brands that are genuine”:
• 36.69% of participants said they ‘strongly agree’
• 41.01% of participants said they ‘agree’
What we found
231
77
115
69
12
BEING
GENUINE OR
TRUE TO
YOURSELF
BEING
CONCERNED
ABOUT
SOCIAL
ISSUES
BEING
POPULAR
AMONG MY
PEERS
BEING
BETTER THAN
OTHERS
OTHER
DEFINING 'COOL'
Number of Responses
15
RQ1 also examined how social media interactivity
by a brand plays a role in engagement and loyalty with Gen Z-
ers. As previous studies have shown, we found that Gen Z-ers are
very heavy social media users. Of the 448 participants who
answered Q7, asking them to indicate the social media sites
they use, we found that 89.96% use Snapchat, 78.57% use
Twitter, 71.21% use Facebook, 85.04% use Instagram, 15.63%
use Google+, 38.62% use Pinterest, and 33.93% use LinkedIn.
Our findings, compared to those of Google, as discussed in the
Literature Review, found a greater percentage of Gen Z-ers on
all social media except for Google+ . Interestingly, the most
popular social media among our participants was Snapchat
(89.69%) while Google’s was Instagram (59.6%). It is also
important to look at, before social media interactivity with
brands, how frequently Gen Z-ers are using social media. Q8
found:
• Snapchat is used the most frequently by Gen Z-ers (50.33%
use it ‘hourly’)
• Gen Z-ers indicate using Twitter, Facebook and Instagram
‘multiple times a day’
Twitter à 31.46%
Facebook à 31.79%
Instagram à 46.36%
What we found
15%
32%
24%
18%
4%
5% 2%
“I feel more loyal to
brands who interact with
me on social media”
Strongly Agree Agree
Somewhat Agree Neither agree nor disagree
Somewhat Disagree Disagree
Strongly Disagree
16
What we found
Finally, Q17 looks at how Gen Z-ers feel about
social media interactivity with brands. Over half of participants
indicated that they either ‘somewhat agree’ (24.17%) or ‘agree’
(31.79%) that they feel more loyal to brands that interact with
them on social media. A little less than a quarter indicated that
they ‘neither agree nor disagree’ (17.88%), and only 10.6%
indicated any level of disagreement.
Next, we will look at how results aligned with RQ2:
What brands do Gen Z-ers feel the highest level of loyalty and
engagement to, what brands are considered cool, and what
can marketers learn from these brands?
When asked to rank the brands for Loyalty and
Engagement we found interesting similarities, not only among the
two lists, but also when comparing these to the coolness ranking.
Among all three lists, Loyalty, Engagement and
Coolness, the same four brands ranked in the top four, and the
same three brands ranked in the bottom three. The top 4 brands
were Apple, Amazon, Netflix and Google, in each category,
while Domino’s, Doritos, and Samsung were the bottom three
brands in each category. One of the most important findings
from these rankings however, is the fact that over 50% of the time,
brands rank the same in terms of coolness as they do in terms of
the loyalty felt towards the brand.
17
What we found
.
COOLNESS LOYALTY ENGAGEMENT
1. Apple Netflix Google
2. Amazon Amazon Netflix
3. Netflix Apple Apple
4. Google Google Amazon
5. Nike Chick-Fil-A Instagram
6. Instagram Instagram YouTube
7. YouTube YouTube Nike
8. Chick-Fil-A Nike Chick-Fil-A
9. Starbucks Starbucks Oreo
10. Oreo Oreo Starbucks
11. Samsung Domino’s Domino’s
12. Domino’s Samsung Samsung
13. Doritos Doritos Doritos
18
In addition to ranking these thirteen brands
deemed top by previous research, particularly Google’s It’s Lit
study, participants were given the opportunity to comment their
favorite brand and to explain why. When asked to comment their
favorite brand, many brands from the top 13 were mentioned,
including Apple (43 times), Amazon (11 times), Nike (37 times)
and Chick-fil-A (14 times). These were out of 291 responses.
Other brands mentioned frequently include Lululemon Athletica
(14 times) and Adidas (15 times). A few interesting explanations
for chosen brands include:
“My favorite brand is Chick FIl A because I have never seen any
company compare to the service they consistently provide
customers. It is unmatchable.” (male, 20, White/non-Hispanic)
“Dawn because they helped the animals with the oil spills.”
(female, 19, Hispanic/Latino)
“Patagonia, quality clothes and fight for environmental and
social issues.” (female, 20, white/non-Hispanic)
“Muji; because I like stationery and it is quality while also using
recycled materials.” (female, 18, Hispanic/Latino)
“Yeti because they have great outlasting products, they are
considered the "cool" thing, and they have amazing ads and
videos in general on YouTube.” (male, 19, white/non-Hispanic)
“My favorite brand is Free People because they promote living a
carefree lifestyle while trying to be ecofriendly.” (female, 22,
white/non-Hispanic)
Notice how among these responses concern for
the environment and/or social issues is a common theme. One
question asked in the survey, Q21, found that 67.22% of
participants agree to some degree that they feel loyalty
towards brands who care about social issues. Two other
participants mention brands’ social media activity as a reason
for those brands being their favorite.
What we found
19
Overall, research questions proposed in this study
were supported by the responses to the survey. These findings
help us to develop our guide to best practices for building
loyalty and engagement with Generation Z.
Best Practices guide
Build a genuine brand; no fake, no fluff
The industry is abuzz about the importance
of understand WHY your company or brand does what
it does, as we have seen with Simon Sinek’s Start with
Why book published in 2009. Sinek focuses on how
leaders must know the why in order to have a successful
brand. This why is more about who your brand is, it’s
overall goal or mission; not “to make a profit” or “to sell X
items,” but how it will better the lives of consumers.
Understanding WHY will help brands to be more
genuine, which will appeal to Gen Z-ers.
Meet Gen Z-ers where they are; advertise on social
media
Gen Z-ers are on at least four social media
sites multiple times a day, if not hourly – meet them there!
We found that social media ads are the most appealing
to this generation, so focusing on implementing social
media ads into campaigns will help companies appeal
to Gen Z.
Respect Gen Z-er’s appreciation for hard work
Handouts aren’t what this generation wants.
They want to be appreciated for their hard work and
effort, and they will be more likely to value your brand if
1. They feel you value their hard work, and 2. Your brand
works hard.
Protect and value privacy
55.69% of Gen Z-ers say they feel loyal to
brands that protect their privacy, and 67.23% either
strongly agree or agree that they feel more loyal
towards brands that are there when they need them, but
otherwise leave them alone. It’s that simple.
Caring is cool
Social issues, particularly environmental
issues, are important to Gen Z-ers, and they will
recognize and appreciate if your brand cares.
What it means
20
While this study yielded information that can be used by advertisers and marketers to help understand
Generation Z as consumers, there are a few things that make this study imperfect. First, this study does not represent all of
Generation Z. Generation Z is technically made up of those about 13-22 years old, and our study was only able to get
information from participants who were 17-22 years old. Another limitation of this study was the fact that a majority of the
sample of participants were Texas Tech University students. While TTU is a large university with an ethnically diverse population,
that our sample was overall representative of, students do have a level of similarity to one another in that they are all
university students, in Lubbock, Texas.
It could be said that there is a question left unanswered by this study. That is, WHY are some brands ranked higher
in coolness, engagement and loyalty. While some participants provided us with insights into why they like certain brands (via
Q21), it would have been beneficial to understand why brands were ranked the way they were.
limitations
21
references
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Brand Keys. (2017). Brand Keys Customer Loyalty Leaders List 2017 [PDF file].
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Parrott Masters Report

  • 1. a guide to best practices
  • 2. Executive Summary..............................................................................................................................................................................3 What’s Already Known...................................................................................................................................................................4 Getting to know Generation Z..........................................................................................................................................................................................4 Generation Z as Consumers................................................................................................................................................................................................5 Brand Engagement........................................................................................................................................................................................................................6 Brand Loyalty.........................................................................................................................................................................................................................................7 Traditional Best Practices for building Brand Engagement and Loyalty...........................................................................8 Building Brand Engagement and Loyalty Among Generation Z..............................................................................................10 What We’re Looking At..................................................................................................................................................................11 What We Found.....................................................................................................................................................................................14 What It Means..........................................................................................................................................................................................20 Limitations.......................................................................................................................................................................................................21 References....................................................................................................................................................................................................22 TABLE OF CONTENTS 2
  • 3. Executive summary As Generation Z, those born between 1995 and 2005 start to make up a greater percentage of consumers, marketers and advertisers much acknowledge their power in the marketplace and work to understand the best ways to build loyalty and engagement with them. Generation Z is different from generations before them, particularly different than Millennials, and by 2020 will make up 40 percent of consumers. Results show that they value the ‘coolness’ of brands, and those they feel are cool are more likely to be those they feel loyalty towards. However, their definition of cool is more about being true and genuine than anything else. This generation is tech savvy, they’re very active on social media, and they value hard work; not everyone should get a participation trophy according to Gen Z. Understanding this new, powerful generation as people and consumers will help brands to build loyalty and engagement with them, which will help the brands thrive and continue to see success. 3
  • 4. What’s already known GENERATION Z Defining the dates Generation Z or Gen Z is something that has created disagreement among scholars and researchers, but for the purpose of this paper, Gen Z will refer to those born from 1995 through 2010. Gen Z-ers represent a unique cohort as their world has been “completely shaped by the Internet” (Seemiller & Grace, 2016, p. 27). Examining this generation and its characteristics is important for marketers and advertisers as Gen Z-ers “will constitute 40% of all U.S. consumers by 2020” (Priporas, Sylos, & Fotiadis, 2017, p. 375). According to Seemiller and Grace (2016) the “highly technological era in which they (Gen Z-ers) were born has helped to make them smart, efficient and in tune with the world, both offline and online” (p. 27). Gen Z is the first generation to exist in a digital world since birth. Gen Z-ers are described as “highly educated, technology savvy, innovative and creative” (Priporas, Sylos & Fotiadis, 2017, p. 376). In addition to their natural disposition to all things technology, according to Seemiller and Grace (2016) Gen Z-ers “describe themselves as loyal, thoughtful, compassionate, open-minded and responsible” (p. 27). In contrast to Millennials before them, “they learn that not everyone gets a trophy and that hard work is part of life” (Seemiller & Grace, 2016, p. 29). In addition to having grown up as digital natives, they also “never knew a world before terrorism or global warming” (Google, p. 21). Seemiller and Grace in Generation Z Goes to College say, “As these students entered kindergarten, they saw the newscasts of September 11, 2001. They witnessed the economy crash and saw the unemployment rate skyrocket. They have known only two US presidents and lived in a world at war for a majority of their lives” (Seemiller & Grace, 2016, p. 27). This detail of the era in which Gen Z-ers is equally as important in shaping them as people and consumers as the fact that they have grown up as digital natives. Generation Z’s communication habits differ from generations before as well. According to Seemiller and Grace (2016), “with constant connectivity and real-time access to information, Generation Z has the ability to engage in quick, frequent and succinct communication” (p. 56). Because of this though, Gen Z-ers are said to maybe have short attention 40% of consumers by 2020 4
  • 5. spans (Seemiller & Grace, 2016, p. 56). Despite their ability to communicate through technology with ease and convenience, Gen Z-ers “still prefer face-to-face communication. They, like other generations before them, crave authentic connection with others” (Seemiller & Grace, 2016, p. 58). When Gen Z-ers are engaging in this technology based communication, they are most often utilizing social media. According to Hulyk (2015) “Gen Z is online. They’re on social media and they’re consuming a lot of content” (p. 33). According to It’s Lit, a report produced by the Brand Team for Consumer Apps at Google, based on three research studies conducted in the United States that were commissioned for the magazine, 56.4 percent of Gen Z is on Snapchat, 35.4 percent is on Twitter, 52.8 percent is on Facebook, 59.6 percent is on Instagram, 42.2 percent is on Google+ and 26.6 percent is on Pinterest. Understanding Gen Z-ers not only as consumers, but understanding characteristics of their cohort is important when attempting to build brand engagement and loyalty among them. GENERATION Z as consumers As consumers, “Wood (2013) asserts that four trends are likely to characterize Generation Z: (1) An interest in new technologies, (2) An insistence on ease of use, (3) A desire to feel safe, and (4) A desire to temporarily escape the realities they face” (Priporas, Sylos & Fotiadis, 2017, p. 376). Additionally, The Center for Generational Kinetics’ second annual State of Gen Z research uncovered interesting “behaviors and beliefs of this emerging generation toward money, spending, and consumer habits” (2017). The study found that Gen Z is smarter with money and that “48% say they will often or always get input from friends or family before making a purchase” (The Center for Generational Kinetics’, 2017). Additionally, the study found that “30% of Gen Z prefer to get information on a brand form a real customer of that brand…19% prefer to get information from an online influencer…(and) 30% believe YouTube ads are the most trustworthy type of ad—more than television, print, radio or social media” (The Center for Generational Kinetics’, 2017). Another interesting trait researchers have found regarding how Gen Z-ers interact with brands is the importance What’s already known 5
  • 6. of how “cool” a brand is. What is considered cool matters a great deal to Gen Z-ers. According to It’s Lit, “cool is an indication of what people pay attention to, what gets them excited, and can often act as a manifestation of their hopes and dreams…For Generation Z, what’s cool is also a representation of their values, their expectations of themselves, their peers, and the brands they hold in the highest regard” (Google, p. 1). However, the way Gen Z-ers define cool is different from what may be expected. For instance, “teens think music that makes them “feel” something is cool…celebrities that are philanthropic and genuine are the coolest” and when it comes to beauty “it’s cool to be you. Being beautiful is being yourself” (Google, p. 6). One Gen Z-er quoted in Google’s It’s Lit said: “When I think “cool” I imagine companies that do great things for customers/employees or beautiful/unusual products” (Google, p. 10). The study found that “Gen Z believe and rely on brands to shape their world” (p. 10), and that the Top 10 Coolest Brands are: 1) YouTube, 2) Netflix, 3) Google, 4) Xbox, 5) Oreo, 6) GoPro, 7) PlayStation, 8) Doritos, 9) Nike, 10) Chrome. The importance to Gen Z-ers of “feeling something” or celebrities or brands being philanthropic and genuine goes back to the fact that they have grown up in a world shaped by terrorism and warr, as well as economic hardships. Brand Engagement Brand engagement, according to Keller (2013) is defined as “the extent to which consumers are willing to invest their own personal resources – time, energy, money – on the brand, beyond those resources expended during purchase or consumption of the brand” (p. 320) and that these “activities consumers engage in show their loyalty towards a brand” (Franzak, Makarem, Jae, 2014, p. 19). Recently, research has revolved around brand engagement that occurs online. According to Solem (2016) “in recent marketing and service research, customer brand engagement was found to be a core explanatory element in online brand communities, the emergence of social media networking sites, and particularly, social media (e.g. Facebook)- based brand communities” (p.333). This idea of brand engagement occurring online is changing things for marketers. What’s already known 6
  • 7. According to Gommans, Krishnan & Scheffold (2001), “the Internet offers unique tools of interactive brand building that have previously not been available through traditional mass media oriented brand-building strategies” (p. 49). One of the new ways in which brands are building engagement is through the use of influencers. According to Hulyk (2015), “several brands have already tapped into the tremendous potential of influencer marketing, partnering with influencers who maintain presences on social networks built for short-format visual and interactive content” (p. 33). While some scholars note the importance of social media in the ability to better measure brand engagement, some are critical that there is not a precise definition of what is considered engagement. According to Chahal (2016), “brand engagement can be as simple as a mention on social media or an email being opened, while others class the act of buy a product or service as the only sign of engagement.” While Chahal makes a valid point, and a clearer definition of brand engagement made be needed, measuring things such as mentions on social media is still important, especially when it comes to Gen Z. Brand Loyalty Brand loyalty is most often defined by repeat buying behavior, and is an important factor when considering brand profitability and consumer brand equity. In 1997, Oliver defined brand loyalty as “a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, despite situational influences and marking efforts having the potential to cause switching behavior” (p. 406). Brand loyalty is thought of in terms of attitudinal brand loyalty and behavioral brand loyalty. Most simply put, one who is attitudinally loyal to a brand will feel positively about that brand and possibly tell others how great the brand is, while someone who is behaviorally loyal will regularly either purchase a product or shop at a particular store. According to Gommans, Krishnan and Scheffold (2001), “conventional brand loyalty development efforts have relied substantially on brand image building through mass media communication” (p. 45). According Roesler (2017), “in the past, the most important facts to brand loyalty revolved around things like price of the item, how far away the store was compared to the competitor, product selection, etc.” However, this is no longer the case. Technology and the online marketplace have made it What’s already known 7
  • 8. so that those “factors are no longer enough to demand brand loyalty” (Roesler, 2017). In Roesler’s article How to build brand loyalty in customers in 2017 he discusses the results of a study conducted by Accenture Strategy, which found many interesting statistics regarding the current state of brand loyalty, including: • 66% of U.S. consumers are spending more with the brands they love • 49% of U.S. consumers feel loyal to brands that present them with small tokens of affection, such as personalized discounts, gift cards and special offers to reward their loyalty • 41% said they are ‘loyal to brands that offer them the opportunity to personalize products to create something that is bespoke to them’ • 51% are ‘loyal to brands that interact with them through their preferred channels of communication’ • 81% feel loyal to brands that are there when they need them, but otherwise respect their time and leave them alone • 85% are loyal to brands that safeguard and protect the privacy of their personal information’ (Roesler, 2017). z Veloutsou (2015) hypothesized that positive brand evaluation, satisfaction, brand trust, and the strength of consumer-brand relationship all have a positive effect on brand loyalty, and found that “loyalty did have very strong correlations with all constructs” (p. 409). Traditional Best Practices for building Brand Engagement and Loyalty The idea of building brand engagement and loyalty is by no means a new one. Today, many best practices for doing so involve things like customer loyalty programs, competitive positioning, and social media interaction. In 2017, the companies with the highest customer loyalty, according to Brand Keys included 1) Amazon (online retail), 2) Google (search engines), 3) Apple (tablets), 4) Netflix (video streaming) 5) Apple (smartphones), 6) Amazon (video streaming), 7) Samsung (smartphones), 8) Facebook (social networking, 9) Amazon (tablets) and 10) YouTube (social networking). Looking at this list tells us more than just who is doing something right, but gives us the opportunity to look more broadly at why certain companies are leaders in loyalty What’s already known 8
  • 9. regardless of the product category you’re looking at them through. Brand Keys (2017) says that “these five brands (the only brands in the top 5) were among the ones most likely to meet consumer expectations for their respective categories” An article by Wheelhouse Advisors named American Express, Toyota, Apple and Starbucks as four brands with phenomenal customer loyalty and engagement. Why? A few reasons. American Express, in 2007, launched a forum called OPEN, aimed at helping small business grow, and Wheelhouse Advisors called it “perhaps one of the best examples of a customer loyalty driver” saying it was “a way to demonstrate that – as a brand – American Express is committed to helping you grow your business. This is a powerful statement and a key facilitator of enhanced loyalty” (Wheelhouse Advisors, 2015). Toyota’s success in creating customer engagement and loyalty is due not only to its product quality and reliability, but its “secret weapon…the ‘Just in Time’ production approach” according to Wheelhouse Advisors. “The whole Toyota Production System is designed to provide the customer with high quality vehicles (at great value) with shortest lead times. It’s all about quality, and consistency” (2015). Apple’s success is due to something a little different than American Express’s and Toyota’s. According to Wheelhouse Advisors, its “clearly defined vision and mission statement (and) commitment to innovation, product quality and cutting edge design” are critical in the brand’s success. But it’s also about the brand manifesto that Steve Jobs created – “an emotional connection” that “is often enough to preserve customer loyalty even when things go wrong” (2015). It’s about more than products, as Seth Godin is quoted in the article stating, “Marketing is no longer about the stuff that you make, but the stories that you tell” (Wheelhouse Advisors, 2015). Finally, Starbucks, who like Toyota has created a certain level of consistency with its brand, as well as the customer experience at Starbucks. Priya Raghubir is quoted from an interview with the Huffington Post as saying, “The enduring brand loyalty is about the core offerings, which is not just coffee. It is the experience of going to Starbucks” (Wheelhouse Advisors, 2015). These practices all have something in common in that they make consumers focus on more than just the product itself. As Wheelhouse Advisors says “the best way to build loyalty what’s already known 9
  • 10. and engagement among your customer base – as evident by some of the world’s biggest companies – is to consistently deliver a positive experience that delivers on a rational and emotional level” (2015). Building Brand Engagement and Loyalty Among Generation Z Literature regarding the types of marketing that are most effective in making consumers out of Gen Z-ers is lacking, primarily because, until recent years, Gen Z-ers were under the age of 18. However, the recent studies that have been conducted have found that building brand loyalty among this generation will likely require marketers to use different tactics than they have in the past. According to Duffett (2017), “teenagers (Gen Z-ers) have become largely resistant to traditional marketing; hence, advertising revenues for many above-the-line media have slowed in growth or even declined in recent years, whereas several forms of digital interactive media (in particular mobile and social media) have proved to be resilient” (p. 31). This conclusion aligns with the findings of The Center for Generational Kinetics’ study. As previously stated, YouTube ads, according to the Center’s study are seen as the most trustworthy among Gen Z-ers. Research regarding how to build brand engagement and brand loyalty among Gen Z-ers is lacking. Like mentioned, this has to do with the fact that it is just recently that this group has reached the age of 18. Because Gen Z will be so powerful in the marketplace in the near future, marketers would be wise to investigate how to build brand engagement and loyalty among this group, as these two things are critical to brand equity and profitability. What’s already known 10
  • 11. RESEARCH QUESTIONs RQ1: Based on how Generation Z-ers engage with brands and feel loyalty towards them, what best practices can be identified for marketers? It is expected, based on literature reviewed thus far, that Gen Z-ers will base their engagement and loyalty towards a brand on three main things: • ”Coolness’ of the brand • The genuineness of the brand • The brand’s social media activity/interaction RQ2: What brands do Gen Z-ers feel the highest level of loyalty & engagement to, what brands are considered cool, and what can marketers learn from these brands? It is expected that similar brands will be ranked similar in each category, loyalty, engagement, and coolness. Brands that will be up for ranking include: • Apple • Amazon • Doritos • Domino’s • Netflix • Google • Samsung • Oreo • Nike • Instagram • Starbucks • Chick-Fil-A • YouTube METHOD A primarily quantitative survey was developed to answer the research questions for this report. The survey was created and distributed via Qualtrics, a research and experience software. The survey questions can be found in Appendix A. The survey consisted of 22 Likert Scale questions, as well as seven questions, some of which were multiple choice, and others that asked participants to rank provided information. Three demographic questions were also included at the end of the survey. The survey was based on findings previously WHAT we’re looking at 11
  • 12. what we’re looking at previously published and discussed in the Literature Review section of this paper, and further information can be found in Appendix B. This survey was open to any participants between the ages of 15 and 22 (born 1996-2003). The survey link was distributed via social media, including Facebook, Instagram, and Snapchat. The survey link was also distributed to Texas Tech University students in Business and Professional Communication, and extra credit in that course was offered to those who proved completion of the survey. The survey link was active for a total of 24 days, opening on March 22, 2018, closing on April 15. Demographics of Respondents Female: 48.18% Male: 50.99% Ethnicities of Participants White/non-Hispanic Hispanic or Latino Black or African-American Natic American or American Indian Asian or Pacific Islander Other 12
  • 13. what we’re looking at 1 65 116 55 35 30 17 YR OLD 18 YR OLD 19 YR OLD 20 YR OLD 21 YR OLD 22 YR OLD AGES OF PARTICIPANTS 17 Yr Old 18 Yr Old 19 Yr Old 20 Yr Old 21 Yr Old 22 Yr Old 13
  • 14. What we found Results Overall, this study’s goal was to conclude best practices for building brand loyalty and engagement with Gen Z-ers, by examining members of this cohort as consumers, and looking at how they currently feel about brands that have previously been determined as top brands among Gen Z. This study yielded many interesting findings that can help practitioners have a better idea of what will work when marketing towards Ge Z-ers, who will soon make up 40% of consumers. Previous research has shown that Gen Z-ers are very different from generations before them, that they don’t believe everyone should get a trophy, that they’re open-minded (Seemiller & Grace, 2016). Research has shown that they care about input from others before making purchases, that they prefer to communicate face-to-face (Center for Generational Kinetics 2017), • Majority (60.93%) do not agree that everyone should get a trophy • Less than 1.5% indicate disagreement with the statement that they would consider themselves open-minded • 82.78% agree to some extent that they care about input from others when making purchases • Prefer face-to-face communication: over 69.86% agree or strongly agree Gen Z-er’s advertisement preferences are also interesting to note before diving into our discussion of our research questions. When asked to rank forms of advertisements from most to least appealing, findings indicated that in-app ads are the least appealing (according to 51.59% of participants). The list went: 1. Social media ads 2. TV ads 3. YouTube ads 4. Print ads 5. In-app ads 14
  • 15. First, we will examine how the results aligned with RQ1: Based on how Generation Z-ers engage with brands and feel loyalty towards them, what best practices can be identified for marketers? We expected that Gen Z-ers would first base engagement and loyalty towards a brand on coolness. First, it’s important to understand how this cohort defines ‘cool.’ Based on this information, we see that Gen Z-ers feel that cool is about being genuine or true to yourself more than anything else, which leads us to believe that genuineness of a brand will equate coolness, and therefore loyalty and engagement. When asked about agreement level with the statement “I feel loyal to brands that are cool”: • 28.37% of participants said they ‘agree’ • 28.37% of participants said they ‘somewhat agree’ When asked about agreement level with the statement “I feel loyal to brands that are genuine”: • 36.69% of participants said they ‘strongly agree’ • 41.01% of participants said they ‘agree’ What we found 231 77 115 69 12 BEING GENUINE OR TRUE TO YOURSELF BEING CONCERNED ABOUT SOCIAL ISSUES BEING POPULAR AMONG MY PEERS BEING BETTER THAN OTHERS OTHER DEFINING 'COOL' Number of Responses 15
  • 16. RQ1 also examined how social media interactivity by a brand plays a role in engagement and loyalty with Gen Z- ers. As previous studies have shown, we found that Gen Z-ers are very heavy social media users. Of the 448 participants who answered Q7, asking them to indicate the social media sites they use, we found that 89.96% use Snapchat, 78.57% use Twitter, 71.21% use Facebook, 85.04% use Instagram, 15.63% use Google+, 38.62% use Pinterest, and 33.93% use LinkedIn. Our findings, compared to those of Google, as discussed in the Literature Review, found a greater percentage of Gen Z-ers on all social media except for Google+ . Interestingly, the most popular social media among our participants was Snapchat (89.69%) while Google’s was Instagram (59.6%). It is also important to look at, before social media interactivity with brands, how frequently Gen Z-ers are using social media. Q8 found: • Snapchat is used the most frequently by Gen Z-ers (50.33% use it ‘hourly’) • Gen Z-ers indicate using Twitter, Facebook and Instagram ‘multiple times a day’ Twitter à 31.46% Facebook à 31.79% Instagram à 46.36% What we found 15% 32% 24% 18% 4% 5% 2% “I feel more loyal to brands who interact with me on social media” Strongly Agree Agree Somewhat Agree Neither agree nor disagree Somewhat Disagree Disagree Strongly Disagree 16
  • 17. What we found Finally, Q17 looks at how Gen Z-ers feel about social media interactivity with brands. Over half of participants indicated that they either ‘somewhat agree’ (24.17%) or ‘agree’ (31.79%) that they feel more loyal to brands that interact with them on social media. A little less than a quarter indicated that they ‘neither agree nor disagree’ (17.88%), and only 10.6% indicated any level of disagreement. Next, we will look at how results aligned with RQ2: What brands do Gen Z-ers feel the highest level of loyalty and engagement to, what brands are considered cool, and what can marketers learn from these brands? When asked to rank the brands for Loyalty and Engagement we found interesting similarities, not only among the two lists, but also when comparing these to the coolness ranking. Among all three lists, Loyalty, Engagement and Coolness, the same four brands ranked in the top four, and the same three brands ranked in the bottom three. The top 4 brands were Apple, Amazon, Netflix and Google, in each category, while Domino’s, Doritos, and Samsung were the bottom three brands in each category. One of the most important findings from these rankings however, is the fact that over 50% of the time, brands rank the same in terms of coolness as they do in terms of the loyalty felt towards the brand. 17
  • 18. What we found . COOLNESS LOYALTY ENGAGEMENT 1. Apple Netflix Google 2. Amazon Amazon Netflix 3. Netflix Apple Apple 4. Google Google Amazon 5. Nike Chick-Fil-A Instagram 6. Instagram Instagram YouTube 7. YouTube YouTube Nike 8. Chick-Fil-A Nike Chick-Fil-A 9. Starbucks Starbucks Oreo 10. Oreo Oreo Starbucks 11. Samsung Domino’s Domino’s 12. Domino’s Samsung Samsung 13. Doritos Doritos Doritos 18
  • 19. In addition to ranking these thirteen brands deemed top by previous research, particularly Google’s It’s Lit study, participants were given the opportunity to comment their favorite brand and to explain why. When asked to comment their favorite brand, many brands from the top 13 were mentioned, including Apple (43 times), Amazon (11 times), Nike (37 times) and Chick-fil-A (14 times). These were out of 291 responses. Other brands mentioned frequently include Lululemon Athletica (14 times) and Adidas (15 times). A few interesting explanations for chosen brands include: “My favorite brand is Chick FIl A because I have never seen any company compare to the service they consistently provide customers. It is unmatchable.” (male, 20, White/non-Hispanic) “Dawn because they helped the animals with the oil spills.” (female, 19, Hispanic/Latino) “Patagonia, quality clothes and fight for environmental and social issues.” (female, 20, white/non-Hispanic) “Muji; because I like stationery and it is quality while also using recycled materials.” (female, 18, Hispanic/Latino) “Yeti because they have great outlasting products, they are considered the "cool" thing, and they have amazing ads and videos in general on YouTube.” (male, 19, white/non-Hispanic) “My favorite brand is Free People because they promote living a carefree lifestyle while trying to be ecofriendly.” (female, 22, white/non-Hispanic) Notice how among these responses concern for the environment and/or social issues is a common theme. One question asked in the survey, Q21, found that 67.22% of participants agree to some degree that they feel loyalty towards brands who care about social issues. Two other participants mention brands’ social media activity as a reason for those brands being their favorite. What we found 19
  • 20. Overall, research questions proposed in this study were supported by the responses to the survey. These findings help us to develop our guide to best practices for building loyalty and engagement with Generation Z. Best Practices guide Build a genuine brand; no fake, no fluff The industry is abuzz about the importance of understand WHY your company or brand does what it does, as we have seen with Simon Sinek’s Start with Why book published in 2009. Sinek focuses on how leaders must know the why in order to have a successful brand. This why is more about who your brand is, it’s overall goal or mission; not “to make a profit” or “to sell X items,” but how it will better the lives of consumers. Understanding WHY will help brands to be more genuine, which will appeal to Gen Z-ers. Meet Gen Z-ers where they are; advertise on social media Gen Z-ers are on at least four social media sites multiple times a day, if not hourly – meet them there! We found that social media ads are the most appealing to this generation, so focusing on implementing social media ads into campaigns will help companies appeal to Gen Z. Respect Gen Z-er’s appreciation for hard work Handouts aren’t what this generation wants. They want to be appreciated for their hard work and effort, and they will be more likely to value your brand if 1. They feel you value their hard work, and 2. Your brand works hard. Protect and value privacy 55.69% of Gen Z-ers say they feel loyal to brands that protect their privacy, and 67.23% either strongly agree or agree that they feel more loyal towards brands that are there when they need them, but otherwise leave them alone. It’s that simple. Caring is cool Social issues, particularly environmental issues, are important to Gen Z-ers, and they will recognize and appreciate if your brand cares. What it means 20
  • 21. While this study yielded information that can be used by advertisers and marketers to help understand Generation Z as consumers, there are a few things that make this study imperfect. First, this study does not represent all of Generation Z. Generation Z is technically made up of those about 13-22 years old, and our study was only able to get information from participants who were 17-22 years old. Another limitation of this study was the fact that a majority of the sample of participants were Texas Tech University students. While TTU is a large university with an ethnically diverse population, that our sample was overall representative of, students do have a level of similarity to one another in that they are all university students, in Lubbock, Texas. It could be said that there is a question left unanswered by this study. That is, WHY are some brands ranked higher in coolness, engagement and loyalty. While some participants provided us with insights into why they like certain brands (via Q21), it would have been beneficial to understand why brands were ranked the way they were. limitations 21
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