User:Reeba Mariyam Ranji/sandbox

= Gen Z from a consumer behavior approach =

INTRODUCTION:
Generation Z (Gen Z, iGen, or centennials) refers to the age group born between 1997-2012, following millennials, which are generation Y. An article of  Generation Z’s the Facts by Ricardo Da Silva said that people who entered the workforce, and some of the oldest who finished college by 2020 are the generation raised on the internet and social media platforms

Generation Z comprises 27% of the US population, the most ethnically diverse and extensive generation in American history. A review of internet sources has stereotyped people born with the internet as tech-addicted and anti-social. However, Pew Research recently defined people born after 1996 as Gen Z.

Generation Z: Who are they, and what events influenced them? Robert Tanner said that the generation born with a phone are the digital natives, whose life experiences have been affected by the response to things viewed, experienced, or reacted to around the world, just like the Millennials. He also mentioned in his article that the disruption change that has been the norm for generation Z is brought up in a time of agitation and insistent hope for a better future.

In a recent study, Robert Tanner stated that the following events shaped Gen Z significantly during the times of attack Terrorism and War, Social Networking, Smart Phones/Mobile First, the Great Recession, Text Messaging, Gun Violence, the Election of Barack Obama, Shared Family Responsibilities, Climate Change, Always Wired Connectivity, Volunteerism, Corporate Social Responsibility, Gender Equality. These events have challenged their mental capacity and decision-making process, which is much more advanced than the Millenials.

Gen Z members are characterized as being cosmopolitan. Global events have actively shaped their view of the world. The study refers that Gen Z is the most enthusiastic generation willing to mobilize across international borders for effective change. Gen Z has the zeal to connect for a global experience in search of the truth behind things. The results indicate that Gen Z wants to experience an authentic life and sees themselves as financially cautious and entrepreneurial. Gen Z looks toward a sustainable environment where they also have security.

Out of the other generations, Gen Z has a different approach when it comes to diversity. The author mentions that Diversity is their life experience; hence they do not tolerate or accept it; instead, they expect it.

CONCEPT OF BEHAVIOR:
The American psychologist John B. Watson (1878–1958), whose most famous work occurred at Johns Hopkins University in the early 20th century. Watson preferred to focus directly on observable behavior and try to bring that behavior under control. Watson technically has shifted our focus of psychology from the mind to behavior. Moreover, Watson's approach to controlling and observing behavior was defined as Behaviorism.

To establish psychology as a scientific discipline, Behaviorism is mainly responsible for objective methods, primarily experimentation. This study on human behavior has also led to research on environmental influence.

CONCEPT OF BEHAVIOR IN ECONOMICS:
The explainer series pioneered by the University of Chicago explained the concept of Behavioral economics, which combines the elements of economics and psychology to get a better understanding of how people behave the way they do in the real world. The study differs from neoclassical economics, which assumes that most people have well-defined and organized preferences to make themselves well-informed. The fieldwork conducted by the University of Chicago and Nobel Laureate Richard Thaler differentiates behavioral economics as what people "should" do, what they actually do, and the consequences of those actions.

Richard thaler has popularised the concept of "Nudge" in behavioral economics, leading people to make better decisions. Human psychology takes advantage of nudge and several other concepts in behavioral economics, including mental accounting, which explains the idea that money is treated differently by people.

HOW IS GENZ RELATED TO BEHAVIORAL ECONOMICS?
Henry Bewicke, in his article gen-z-consumer-behavior-what-you-need-to-know, said that Gen Z is considered well-informed consumers who come prepared with research and optimum options before making any decision. The behavioral approach of Gen Z is much less attached to specific brands; instead, they prefer to purchase those products that offer the best deal. Gen z highly values brand ethics and corporate responsibilities more than generation Y.

HOW GENZ MAKES BUYING DECISIONS?
The article written by Henry Bewicke states how Generation Z's buying and decision-making processes are different from that of millennials. Generation Z decides its purchase decisions using search engines and social networks for research. The source highlights Gen Z as the population who shops via online platforms in major. Like a B2B buying process, Generation Z buys by the committee for essential or everyday buying decisions such as clothing or food. They are looking for consensus among their network.

The study reflects and concludes that Gen Z has different psychology when it comes to decisions making. They prefer to ask themselves, " whether this product will benefit me or actively fit into the narration of my life?". Gen Z thinks about brands differently. They are more interested to know if this purchase of the brand gives them some back story that they might relate to their life. While Gen Z'ers are price-conscious, they are not as price-centric as some previous generations. To get into the Gen Z wallet, brands and products and brands must be valuable, qualitative, and ethical.