Value vs. price: how brands can appeal to Gen Z and baby boomers
When deciding where to shop for groceries, which of these – overall value, low prices, promotions, loyalty rewards – affect your decision? We’ve posed this question to consumers since 2022. One of the most interesting observations is the difference in responses between baby boomers (the generation with the most wealth) and Generation Z (the generation poised to be the most wealthy in the near future).
Source: 84.51° Customer Knowledge Quarterly
Even when accounting for sample size (which might impact quarterly results), the long-term trend indicates that Gen Z prioritizes low prices and overall value when choosing where to shop for groceries. Great promotions/sales and store loyalty/rewards programs have been less of a driving factor, but both are on an upward trajectory as of early 2024. Gen Z’s focus on affordability and overall value highlights their cost sensitivity, as well as an interest in balancing price and quality. And even though this demographic group currently places less importance on promotions and loyalty rewards, their shopping habits and preferences are still developing, giving brands an opportunity to build strong relationships and trust with Gen Z shoppers.
Source: 84.51° Customer Knowledge Quarterly
Compared to Gen Z, baby boomers have consistently prioritized overall value for their money as the top factor on where to shop for groceries, followed by low prices. Baby boomers also have a slightly greater appreciation for great promotions/sales and store loyalty/rewards programs than Gen Z.
Baby boomers’ focus on overall value likely reflects a combination of factors, including a desire for financial prudence, possibly due to fixed incomes during retirement or a longstanding habit of careful spending developed over time. It suggests that baby boomers prioritize getting the best combination of quality and cost, rather than just seeking the lowest prices or specific promotions, as they aim to stretch their dollars while maintaining a certain standard of living.
The upshot
Understanding the shopping preferences of Gen Z and baby boomers allows CPG brands to tailor their marketing strategies effectively. To best engage Gen Z, brands should highlight competitive pricing as well as value, such as through convenience and time saved. As our research indicates, Gen Z is apt to utilize services such as buy online for pickup and purchase convenient, ready-to-eat foods like crackers and popcorn. For baby boomers, communicating a product’s overall value proposition, such as product quality and reliability, is also key.
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