Millenials (1981-96) - want and need to show off ethical lifestyle - also now a big move towards health and wellness

Gen Z (1997-2012) - more holistic look on life - decisions don't have actions - social justice

Digital Nomads / Remote first workers - easy lifestyle

Health Conscious Consumers - constant look for new products, influencing

Genz:

Tiktok:

Microtrends: Over consumption:

Compare to boomers (parents generation)

Motivation: social media

Brand loyalty is when consumers continuously purchase goods or services from a particular brand, rather than buying from other competitors. It shows that the consumer trusts the brand entirely. Brand loyalty not only fosters repeat purchases but also strengthens the emotional connection between the customer and the brand itself. As these loyal customers continue to repeat purchases, it helps to generate consistent revenue for the brand, thus contributing to long-term financial success.

Right now I am going discuss some levels in Maslow’s Hierarchy of Needs theory and how it contributes to brand loyalty. Consumers are often loyal to certain brands that meet essential needs eg. Food, water, clothing. These brands build loyalty through their products being affordable, reliable and consistent. These basic survival needs meet the ‘Physiological Needs’ level in Maslow’s Hierarchy of Needs. For example, a consumer may only do their grocery shopping at Tesco because of its affordable Clubcard prices. Another level is ‘safety needs’ where consumers look for brands that can provide them with a sense of security, and will remain loyal to that product if it is reliable. For example, consumers stick with insurance companies that give them security and financial protection. ‘Esteem needs’ is another level of Maslow’s theory. Some consumers remain faithful to brands that demonstrate status signalling behaviour. This can be shown in various ways such as consumers walking around and carrying a shopping bag with a logo of a luxury brand on it, showing that they bought a very expensive item from this particular company. The aim is to show that they are stylish and successful and it contributes significantly to their self-image.

Some consumers may buy an item and then shortly regret their decision. This could be because they feel they have spent too much money on it or the item does not meet their specific needs or expectations. The Cognitive Dissonance Theory explains how consumers deal with behaviour after purchasing a particular item. Customers who experience cognitive dissonance want to undo the effects of purchasing this item that they now regret by returning that certain product. They may try to diminish their discomfort by justifying their actions or changing their beliefs. Loyalty can play a pivotal role in reducing this negative post-purchase feeling. Brands can build customer satisfaction and encourage loyalty. They may try various methods such as communicating with the customer post-purchase to make them feel like they have made the right decision by highlighting the unique features and long-term advantages of the product or service. Amazon does a great job of promoting the various benefits of having a Prime membership. Some customers may doubt if the annual fee of Amazon Prime is worth it, but Amazon reassures them by saying that with this fee not only do you get free shipping, but also access to its streaming service and exclusive deals. This type of reassurance helps to ensure that consumers remain loyal to a certain brand.

Compare to Older Generation (Boomers)

There is no doubt that Gen Z are the older generations such as Boomers are very different from one another. They grew up with different values, beliefs and behaviours which have shaped them into who they are today.

Young people in the world today are heavily influenced by social media, which significantly impacts their motivations. Often Gen Z uses social media to exhibit their achievements such as their academic success or personal accomplishments. Many young people have a high need for achievement and are driven to succeed. By showcasing their achievements online, this will enhance their image, and they may be motivated to pursue higher levels of achievement. Psychologist David McClelland suggested that every person has one of three main driving motivators: the need for achievement, affiliation or power. There is no doubt that the majority of Gen Z has a major need for achievement, thus aligning with McClelland’s Motivation Theory. In the same way for Boomers, they are not so influenced by social media platforms. Many Boomers were adults when computers, the internet and mobile phones became the norm. As many young people in the world today grew up with such technology, they are more comfortable with using it and have more knowledge on it compared to most Boomers. Boomers may have social media platforms such as Facebook to connect with their family and friends compared to Gen Z who use newer platforms such as Instagram, TikTok and BeReal more often. Many Boomers would not be familiar with these apps.

In a similar way Gen Z are also heavily influenced by what they see online. Many young people today follow different influencers on various social media platforms such as TikTok. Gen Z’s motivation for affiliation drives them to engage with online influencers who share the same interests and values that they have. Many influencers with a large following tend to have brands that sponsor their videos. In return they will create a video promoting the company’s product or service. People will see this and because they are a fan and the person has numerous followers, they will trust that the brand they are promoting is of good quality and is trustworthy, and they may buy this product. In contrast most Boomers prefer the traditional approach. They may buy products that they see on newspapers, TVs or radios. They often view the products promoted on this channels as more trustworthy compared to social media.

Maslow's Hierarchy on needs

Host: First up, the physiological needs. Social media platforms give us instant access to products and services, making it super easy to satisfy our basic needs.

Host: Next, we have safety. Consumers feel more secure when they can read user reviews and see brand transparency. This builds trust, which is crucial for making purchasing decisions.

Host: Moving on to love and belonging! Social media fosters connections. We crave community, and platforms allow us to seek validation through likes and shares, reinforcing our social ties.

Host: Now, let’s talk about esteem. Many users showcase their purchases online, which helps boost their self-image and social status. It’s a powerful motivator!

Host: Lastly, there’s self-actualization. Social media can inspire personal growth and unique experiences, nudging us toward pursuing our true passions. This, of course, shapes our buying habits.

McClelland's Achievement Motivational Theory

Host: McClelland identified three key needs: achievement, affiliation, and power. Let’s see how social media amplifies these motivations in relation with its effect on consumer behaviour.

First, we have achievement. Users motivated by this need often showcase their success through luxury purchases. They’re influenced by aspirational content, which fuels their desire to buy more. Celebrities are a great example of how achievements can effect consumer purchasing decisions. The likes of Conor McGregor in his Lamborghini yacht or Kim Kardashian in her Rolls Royce often influence the mindset of young people who then strive to achieve and have the ability to purchase these goods.

Host: Next is affiliation. Many consumers gravitate towards brands that create a sense of community and connection. This often leads to collective buying behaviours, as people want to share experiences with others. The White Fox hoodie trend is a great example of how certain niche markets can be targets of social media advertising. Through social media, women from the age of 18-24 all want to be affiliated with this brand.

Host: Finally, let’s talk about power. This need is reflected in brand loyalty. Consumers often choose brands that enhance their social status, feeling empowered by their choices.

Host: So, social media not only mirrors these motivations but amplifies them, shaping our consumer choices and boosting buying power in the digital marketplace.

Herzberg's Motivation

Host: Herzberg identified two factors: motivators and hygiene factors. On social media, motivators, like engaging content and brand storytelling, drive consumer excitement and loyalty. When users connect with a brand's values, they’re more likely to make a purchase. Burberry's nine minute video of Cole Palmer wearing their duffle coat is a method used to attract people who have interest in football to buy luxury products.

Host: Hygiene factors, such as customer service and product quality, are also crucial. Negative experiences shared online can deter potential buyers, highlighting the importance of maintaining a positive brand image. Ryanair has neglected it's hygiene factors in the past but due to their low prices people are left with little choice but to fly Ryanair.

Reinforcement Theory

Host: Reinforcement theory suggests that behaviors followed by positive outcomes are likely to be repeated. On social media, this plays out when consumers receive likes, shares, or positive comments after engaging with a brand. Louis Vuitton created an ad where Messi and Ronaldo were playing chess. On each side of the ad there was a louis Vuitton bag. The ad received over 82 million likes on Instagram.

These rewards reinforce purchasing behaviour, encouraging users to buy products that garner social validation. Additionally, brands that consistently engage their audience create a cycle of positive reinforcement, driving loyalty and repeat purchases.