Influence of Reference Groups on Buying Decisions of Gen Z, With an Emphasis on E-Commerce

Abstract

A problem that is receiving a lot of attention in today's market is the impact that reference groups have on the purchasing choices made by members of Generation Z (also known as Gen Z). This generation, known as Gen Z, comprises of people who were born between the middle of the 1990s and the early 2010s. They are the first to have grown up with the internet and technology. Because of this, they now do a substantial portion of their shopping on online platforms such as Amazon Flipkart and eBay. When people are making judgements, reference groups are individuals or groups that they use as a foundation for comparison. Reference groups may be either internal or external. It is possible for them to include members of one's family, acquaintances, classmates, and even famous people. It is clear that reference groups have a considerable impact on the purchasing choices made by Generation Z, especially in regard to online shopping. Because of its accessibility and ease, online shopping has seen a rise in popularity among members of Generation Z. They may acquire almost whatever they want from the convenience of their own homes with only a few mouse clicks. Despite this, the impact of reference groups may still have an effect on customers' purchasing choices, even when they are doing business online. For instance, customers of Gen Z may seek to social media influencers or online reviews for assistance when deciding what products or services to buy. They could also consult their contemporaries or participate in internet networks when looking for guidance or suggestions. These reference groups have the potential to have a major effect on customers' perceptions of goods and brands, which in turn may affect customers' choices about purchases. In general, the question of the effect of reference groups on the purchasing choices made by members of Generation Z in the context of online shopping is one that should be carefully considered by companies. Companies will be able to better customize their marketing efforts and more successfully target this important generation if they have a grasp of the elements that drive the purchase behavior of Generation Z